Company A acquired 37% investment in Company B for R196 000. During the first year after acquieition Company B made net income of R400 000. Using the equity accounting method, what will happen to Company A's investment in Company B? Select one: O a. It remains the same O b. It increases by R148 000 O c lt decreases by R196 000 O d. It decreases by R148 000
Q: 9. Calculate the assessed value (in $) and the property tax due (in $) on the property. Fair Market…
A: Property Tax - Property Tax is tax levied on the property owners against the service provided by way…
Q: ABC Inc. operates two separate lines of business - a fashion design business and an investment firm.…
A: As per the revised provisions of Tax Cuts & Jobs Act removed the provsion of 2 years carry…
Q: Prepare a bank reconciliation on 30 June 2016 based on the information provided below. Show all your…
A: The bank reconciliation statement is prepared at end of period to find the errors in bank statement…
Q: Settled is the rule that in tax matters, the government is not estopped by the errors or mistakes…
A: Taxes Taxes are the compulsory obligations imposed by the government agency on individuals and…
Q: Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost data for…
A: GIVEN Second Chance Welding rebuilds spot welders for manufacturers. The following budgeted cost…
Q: During 2021, Palm Corporation reported pretax book income of $675,000. Tax depreciation exceeded…
A: Deferred Tax Provisions It is important for the business to calculate the income tax expenses and…
Q: Question 4 Based on the following information provided by Max Trading Company on December 31, 200C,…
A: Net income can be calculated as: = Net Sales - Cost of goods sold + Other Income - Other expenses -…
Q: The operating budget of the Black Monster company is given below. Sales $425000 Fixed costs $122000…
A: Break-even point = Fixed costs /Contribution margin per unit where, Contribution margin per unit =…
Q: Allyna and Allysa are partners with capital balances of P 480,000 and P 240,000. Their profit and…
A: Part 4 - Journal Entry to record admission- Cash 360,000 Allyana, Capital…
Q: As a result of the G&G work, Shane Company decided to lease the following properties: Lease Acres…
A: Lease is legal agreement between two party to agree use of assets and rent of assets at certain…
Q: x Co. can deduct life insurance premiums paid providing: the life insurance policy is required as…
A: Answer:- Life insurance premiums:- Life insurance premium can be defined as the payment that a…
Q: bbeville Company manufactures faucets in a small manufacturing facility. The faucets are made from…
A: The variance is the difference between standard data and actual production of the business.
Q: Q/ Here are the inventory records for AT Co for the month of Mar. Date Account nameQuantity Unit…
A: Inventory is one of the current asset of the business reported in the balance sheet. It includes…
Q: The following information is available for Metloc Rock Corporation: Common Stock ($5 par)…
A: The stock dividend is a method of capitalizing the retained earning. Generally the large stock…
Q: PPP is a Filipino residing in Muntinlupa City. Aside from being employed as an accounting supervisor…
A: Optional Standard deduction is a standard deduction of 40% which is allowed to be deducted from the…
Q: Inman Construction Company is considering selling excess machinery with a book value of $284,000…
A: The differential analysis is prepared to compare the two different alternatives available with…
Q: Kilos Cost 80,000.00 160,000.00 60,000.00 132,000.00 What is the estimated cost of handling 75,000…
A: The high low method can be used to separate the fixed and variable cost from the mixed cost and…
Q: What is the expected balance in Accounts Payatile as of March 31 OA. $26,550 O B. $14,750 OC. $2,990…
A: Solution:- Calculation of the expected balance in accounts payable in the month of March 31 as…
Q: Direct labor 17 per unit 11 per unit 24 Direct materials Overhead Total variable overhead Total…
A: Formula: Product cost under absorption costing = Direct materials + Direct labor + Variable overhead…
Q: the partners plan to expand by opening a retail sales shop. They have decided to form the business…
A: Cash A/c PARTICULARS AMOUNT PARTICULARS AMOUNT Beg. Balance $0 (b) $100,000 (a) $188,000…
Q: P262,500; Nov. 17, 2021
A: Calculating the due date and maturity amount of note payable
Q: Question 11 Inventory management refers to the formulation and administration of plans and policies…
A: Inventory is the goods or merchandise held by a company for selling purpose to earn profit.…
Q: Tomatsui Company provided the following annual data: Sales P3,500,000 Cost of Sales P2,275,000…
A: Incase of calculation of minimum cash balance there is a simple way to calculate exactly how much…
Q: Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not…
A: Solution:- Prepare the journal entry at commencement of the lease for Sharrer (1) Sharrer does not…
Q: Vhembe Limited manufactures and sells lawnmowers online to the public. The company produced a profit…
A: Tax accounting is the branch of accounting that deals with preparing and paying taxes. Individuals,…
Q: Schedule of Cash Collections of Accounts Receivable Furry Friends Supplies Inc., a pet wholesale…
A: Accounts Receivable: Accounts Receivable recognized in the company's books to show the amount which…
Q: Question 2 Ordering costs are those incurred every time an order is placed such as clerical costs…
A: When goods are ordered there is cost involved in it and the cost involved in ordering the goods is…
Q: Table 11.9 Normal and Crash Data for General Foundry, Inc. TIME (WEEKS) COST ($) CRASH CRITICAL COST…
A: The path having the longest duration is Critical Path. A-C-E-G-H having duration of 2 + 2 + 4 + 5 +…
Q: Modern Movables Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it…
A: A cash flow statement indicates cash inflow and cash outflow information of a particular time…
Q: Transac Purchased 150 units of st Durcha ced 22E unite of
A: FIFO method is based on the assumption that goods that are received first are issued first. this…
Q: Financial information for a company for 2013 is provided. The company has a December 31 year- end.…
A: Statement of Cash Flow - Statement of cash flow shows the movement of cash for the financial year.…
Q: 8. Central Drug Store carries a variety of health and beauty aids, including elastic ankle braces.…
A: Budgets are the forecasts or estimates for future period of time. It means quantitative form of…
Q: 13.E J owns some property that has an assessed value of $415,920. Calculate the tax due if the tax…
A: A determined valuation of property on which tax is to be levied is the Assessed value of property.…
Q: Question 12 Marketable securities refers to medium-term money market instruments and non- trading…
A: Marketable securities refers to the securities which can be easily converted in to cash and are held…
Q: 00,000 in cash on Jan. 56,000,000 of net ass r an unrecorded intang 000,000 value (useful on). The…
A: The entries have been prepared below.
Q: Required: (a) Calculate the value of stock on hand at the end of each month during the period 1 July…
A: FIFO method is based on the assumption that goods that are received first are issued first. this…
Q: On June 30, 2018, Parent Company sold some land to its subsidiary for $240,000. The land had cost…
A: As on December 31,2018 the land is not sold by subsidiary. Land was sold by subsidiary to outsider…
Q: each 10 November Purchased 410 units of stock @ £40 each 23 December Sold 100 units of stock @ £75…
A: a) Month opening stock Purchases Sales Closing stock July 150x20 =3000 150x20 =3000…
Q: Differential Costs are the difference in cost between any two alternative choices True False
A: Differential cost is the cost difference when two alternatives are projected. It also the cost…
Q: A corporation bought a machine for RP 8,000 with a commercial useful life of 4 years and a fiscal…
A:
Q: On July 20, 2021, Benildo Corp. discounts a 120 days, 15% P250,000 note of a customer dated July 10,…
A: Cash proceeds from discounting the note = Maturity value of the Note - discount amount where,…
Q: Instructions The following data were gathered to use in reconciling the bank account of Reddan…
A: Bank reconciliation is prepared to reconcile the bank statement balance and bank balance as per…
Q: Jacques is an alien assigned in the Philippines to manage the regional area headquarters of Deli…
A: The Non Resident Aliens in Philippines are subject to income tax on the incomes…
Q: The City placed a sculpture of a woman holding a child over her head in Hawrelak Park. During a…
A: Modification Rights- Any current or prospect legislation which operates to differ an obligation or…
Q: Familiarization of investment types. Identify keywords if it is; Deposit Fund Bond Stock Property 1.…
A: 1. Collateral - deposits 2. Shareholder - fund 3. Creditor - bond 4. debt holder - bond 5. Equity -…
Q: Mr. Craft purchases his first home in 2011 at a cost of $89,000. In 2016, the home is sold for…
A: The capital gains arise when the capital asset value increases and it is sold. In case a capital…
Q: 1. What is the pre-determined overhead rate? A. P 5.69 P 4.86 P 5.45 P 4.27 В. С. D.
A: Overhead refers to the operating expense of the business. Overheads are very important to for the…
Q: Price 85 8 Price 75+ 26 7- 24 65- 22 Social Cost 6+ 20 55 18 Supply 16 45 14 Private Cost 4 - 12 35…
A: External Cost = Social Cost - Private Cost = 5 - 3.5 = 1.5 ( As per First Graph) External…
Q: chased 1,200 of the 100,000 outstanding shares of M 0 commission. total earnings for the period are…
A: Baston Co purchased 1,200 shares of Micheal Corp that has 100,000 outstanding shares . Baston Co…
Q: acques is an alien assigned in the Philippines to manage the regional area headquarters of Deli…
A:
Step by step
Solved in 2 steps
- year. investment g amount of P8,000,000. ahares of Beta Company an Beta' Company had 80,000 amount and fair valus of 3 600,000 and P3,900,000 mid per-share dividend of . Compute the carrying amount of the investment at year-end. aount of the Problem 17-7 (ACP) On January 1, 2016, Bypass Company acquired as n long term investment for P7,000,000 a 40% interent in an investee when the fair value of the net'assets was P17,500,000. The investee reported the following net losses: broadcas 2016 2017 2018 2019 5,000,000 7,000,000 8,000,000 4,000,000 attributable to a On January 1, 2018, Bypass Company made cash advances of P2,000,000 to the investee. On December 31, 2019, it is not expected that Bypass Company will provide further financial support for the investee. Company has a 20-year broadcast license. 019. 20. he investment in Required: Prepare journal entries from 2016 to 2019 in relation to the investment in associate.Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution of EBIT for the coming year: Firm A Unlevered Probability EBIT Interest EBT Taxes (40%) Net Income BEP ROA ROE Bad O 3.487% O 2.653 % O 3.098% O 3.774% O 2.800% 30.00% $500.00 $0.00 $500.00 -$200.00 $300.00 10.00% 6.00% 6.00% Economy Average 50,00% $700.00 $0.00 $700.00 -$280.00 $420.00 14.00% 8.40% 8,40% Good 20.00% $900.00 $0.00 $900.00 -$360.00 $540.00 18.00% 10.80% 10.80% Now assume that the firm plans to issue $2,000 of debt, at an interest rate of 6.4 percent, and use the proceeds to repurchase equity (you may ignore potential impacts on price and assume that the firm will then have $3,000 of equity). Given this information, determine the standard deviation of the new ROE distribution.The following information is about Green Tea Ltd. Year Net income ($’000 000) Beginning book value of equity ($’000 000) 1 32 42 2 28 39 3 44 47 Required: Calculate Equity value using discounted abnormal earnings valuation method. The cost of capitalis 10%.
- Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution of EBIT for the coming year: Fem A Unlevered Probability EBIT Interest EBT Taxes (40%) Net Income BEP ROA ROE O2.653% O 3.487% 2.800% O 3.098% Bad 3.774% 10.00% $500.00 $0.00 $500.00 -$200.00 $300.00 10.00% 6.00% 6.00% Economy Average 40.00% $700.00 $0.00 $700.00 -$280.00 $420.00 14.00% 8.40% 8.40% Now assume that the firm plans to issue $2,000 of debt, at an interest rate of 6.4 percent, and use the proceeds to repurchase equity (you may ignore potential impacts on price and assume that the firm will then have $3.000 of equity). Given this information, determine the standard deviation of the new ROE distribution. Good 50.00% $900.00 $0.00 $900.00 -$360.00 $540.00 18.00% 10.80% 10.80%The following information is about Green Tea Ltd. Beginning Net income book value of equity ($'000 000) Year ($'000 000) 32 42 28 39 3 44 47 Required: Calculate Equity value using discounted abnormal earnings valuation method. The cost of capital is 10%.Riverbed Co. invested $980,000 in Marin Co. for 25% of its outstanding stock. Marin Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Marin to answer the following questions. Investment in Marin Co. 980,000 108,000 43,200
- 5. Economic Value Added (EVA) Fink Company presents the following year-end data: Current assets Non-current assets Current liabilities Non-current liabilities (10% interest rate) Stockholders' equity Additional data: Income before interests and taxes: P 800,000. Income tax rate: 20%. Cost of equity capital: 12%. REQUIRED: 1. Weighted Average Costs of Capital (WACC) 2. Economic Value-Added (EVA) Book Value P 800,000 3,200,000 400,000 1,000,000 2,600,000 Fair Value P 1,000,000 3,000,000Fairbanks 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. $600Pronghorn Co. invested $1,070,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividene each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 1,070,000 99,000 (a) How much was Pronghorn Co.'s share of Stellar Co's net income for the year? Net income 29,700 Total net income (b) What was Stellar Co's total net income for the year? 428000 Total Dividends. $ 396000 (c) What was Stellar Co's total dividends for the year? 128400
- Willard Co. acquired a 30% interest in Diltronics for $420,000 and appropriately applied the equity method. During the first year, Diltronics reported net income of $250,000 and paid cash dividends totaling $50,000. What amount will Willard report as it relates to the investment at the end of the first year on its income statement? Show the calculation used to get the answer Investment earnings totaling $75,000 Investment earnings totaling $45,000 Net investment earnings totaling $150,000 Receipt of dividends totaling $15,000The following information is available for a FVTOCI investment: Purchase price $400,000; Unrealized holding gain at the end of year 1 $5,000; Unrealized holding gain at the end of year 2 $6,000. Calculate the balance in the AOCI equity holding (loss) or gain account at the end of year 2 for reporting purposes. O Gain of $6,000 O Gain of $411,000 O Gain of $5,000 O Gain of $11,000Pronghorn Co. invested $920,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividends each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 920,000 110,000 33,000 (a) How much was Pronghorn Co's share of Stellar Co's net income for the year? Net income $ (b) What was Stellar Co's total net income for the year? Total net income +A $ (c) What was Stellar Co's total dividends for the year? Total Dividends $ (d) How much was Pronghorn Co's share of Stellar Co's dividends for the year? Dividends $