Choose the correct answer: Westlife Company acquired on July 1, 2020, 30,000 ordinary shares of Lucy Company for P40 per share.   Lucy has 100,000 outstanding ordinary shares on that date.   Lucy’s net income for the year ended December 31, 2020 was P2,400,000, earned evenly throughout the year.    Lucy paid dividends in the amount of P800,000 to its ordinary shareholders at December 31, 2020.             What  amount of income from the investment should Westlife report in its 2020 income statement? Remember the shares were acquired July 1 so right over the associate starts only from July 1. P720,000                                c.         P240,000 P360,000                                d.         P120,000

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The balance of the investment account at December 31,2021 is: a. P5,924,000b. P5,000,000c. P5,744,000d. P7,660,000

Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Sherman shares were selling for £34.50 per share. How much total revenues (all revenues) should be recognized from this investment during the year? Select one: Oa. $1900 Ob. $700 OC $1300 Od. $600

On January 1, 2020, Churl Company paid $1,700,000 for a 40% stake in Flip Company. The Flip Company's stockholders equity on January 1 and December 31, 2020 is shown below: Share capital Revaluation surplus Retained earnings January 1 3,000,000 1,000,000 December 31 3,000,000 1,300,000 1,500,000 By Jan 1, 2020, all of Flip's identified assets and liabilities were recognized at fair value. During the current fiscal year, the flip firm recorded a profit before income tax of 1,000,000 and paid dividends to stockholders of 150,000. The revaluation excess is the outcome of Flip Company's land reassessment on December 31, 2020. Flip displays OCI net of any relevant income tax. Furthermore, Flip Company provides depreciation using the declining balance approach, whereas Churl Company employs a straight line. The cumulative depreciation would have been enhanced by 200,000 if Flip Company had used the straight line. The tax rate is set at 35%. On December 31, 2020, Churl Company will report its…

At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2026? What is the total net income reported in 2026 under each of these methods?Kingbird Donald Inc. acquired 20% of the outstanding common stock of Theresa Ivanhoe Inc. on December 31, 2025. The purchase price was $1,205,000 for 48,200 shares. Ivanhoe Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31,2026 . Ivanhoe reported net income of $692,000 for 2026 . The fair value of Ivanhoe's stock was $28 per share at December 31 ,2026, Assume that the security is a trading security.

Q1: How much is the investment income on 2021? Q2: How much is the carrying amount of the Investment in Associate as of December 31, 2021?

Juniper Inc. acquired a 25% interest in Saturn Co. on January 1, 2021, for $260,000.  During 2021, Saturn reported net income of $86,000, and paid a total cash dividend to shareholders in the amount of $16,000.  Juniper uses the equity method to account for this investment.  At the end of 2021, Juniper will report the following debit balance in the investment account:   Question 6 options:   $285,500   $260,000   $277,500   $281,500

Tamarisk Inc., a public company, owns 20% of Dong Ltd's common shares for strategic purposes. The investment's carrying amount at January 1, 2024, is $299,000. During the year, Dong reported profit of $255,400 and paid a dividend of $22,400. The investment's fair value on December 31, 2024, Tamarisk's year end, is $316,100. (a) Assuming Tamarisk has significant influence over Dong, indicate the amount reported on the balance sheet for the investment at December 31 and the amount of income from this investment reported in the income statement. Balance Sheet: Income Statement: eTextbook and Media $ Equity Method

Company P acquired 90 percent of the common stock of Company S on 1/1/2020. During 2020, Company S reported a net income of $50,000 and dividends of $12,000. Company P uses the simple equity method to account for the investment in S. Which of the following entries is prepared by Company P when consolidating the financial statements for 2020? Debit Subsidiary Income $45,000, Credit Investment in S $45,000 Debit Investment in S $45,000, Credit Subsidiary Income $45,000 Debit Dividends Receivable $10,800, Credit Subsidiary Income $10,800 Debit Subsidiary Income $10,800, Credit Dividends Declared $10,800