Compute the AAP amortization for 2019.
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- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossInvestments On October 4, 2019, Collins Company purchased 100 bonds of Steph Company for 6,400 as a short-term investment in securities classified as available for sale. On December 31, 2019, the bonds had a fair value of 6,300, and on February 8, 2020, Collins sold the bonds for 6,700. Required: In journal entry form, prepare the spreadsheet entries to record these transactions for Collins Companys 2019 and 2020 statement of cash flows.Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000 cash. As of that date Solar had the following account balances: Book Value Fair value Cash $630,000 $630,000 Accounts receivable 775,000 775,000 Inventory 350,000 400,000 Building-net (10 year life) 1,000,000 900,000 Equipment-net (5 year life) 300,000 400,000 Land 600,000 900,000 Accounts Payable 125,000 125,000 Bonds Payable (Face amount $1,000,000, due 12/31/2023) 2,000,000 2,050,000 Common stock 500,000 Additional paid-in capital 250,000 Retained earnings 780,000 In 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years. Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solar's Bonds Payable would appear on the consolidated balance sheet at December 31, 2019? Select one: A. $2,050,000 B.$2,040,000 C. $2,000,000 D. $2,010,000
- Huey Company acquires 100% of the stock of Solar Corporation on january 1, 2019, for $2.400,000 cash. As of that date Solor had the following account balances: Book Value Eair value Cash $630.000 $630,000 Accounts receivable 775.000 775,000 Inventory 350.000 400,000 Building-net (10 year life) 1,000,000 900,.000 Equipment-net (5 year life) 300.000 400.000 Land 600,000 900,000 Accounts Payable 125.000 125,000 Bonds Payable (Face amount S1,000,000. due 12/31/2023) 2.000.000 2,050,000 Common stock 500,000 Additional paid-in capital Retained earnings 250.000 780.000 in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solars single legat entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition? Select one A $2.064.000 B $3,350,000…Marie Bhd acquired 80% of Donny Bhd ordinary share capital on 1 January 2019. As at 31 December 2019, extracts from their individual statements of financial position showed: Accounts Marie Bhd (RM) Donny Bhd (RM) Current assets: Receivables 105,000 40,000 Current liabilities: Payables 90,000 21,000 As a result of trading during the year, Marie Bhd’s receivables balance included an amount due from Donny Bhd of RM5,000.Required:Explain the amount to be shown as the consolidated figure for receivables andpayables. Please show your calculation.Taylor Company acquired the assets and assumed the liabilities of Swift Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000. Issued 10,000 ordinary shares at P10 par with a market price of Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet Share issue costs paid amounted to P15,000. Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Taylor Company Swift Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000 It was…
- On January 1, 2019, Lallo Company purchased 15% of Vintar Company’s ordinary shares for P20,000,000. The following data concerning Vintar Company are available: 2019 2020 Net income P6,000,000 P7,000,000 Cash dividend paid None 15,000,000 In its income statement for the year ended December 31, 2020, how much should Lallo report as income from this investment?Ed Company acquired the assets and assumed the liabilities of Sheeran Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000. Issued 10,000 ordinary shares at P10 par with a market price of P15. Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet paid. Share issue costs paid amounted to P15,000. Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Ed Company Sheeran Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000…Ed Company acquired the assets and assumed the liabilities of Sheeran Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000.Issued 10,000 ordinary shares at P10 par with a market price of P15.Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet paid.Share issue costs paid amounted to P15,000.Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Taylor Company Swift Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000 It…
- On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open maket in eiciarche for $16,000. On December 31,2020 , Akron, Inc., acquires an additional 25 percent of Zip Companys outstanding commen stociter $95,000. During the next two years, the following information is available for Zip Company. \table[[,Income,\table[[Dividends],[Declared]],\table[[Common Stock],[Fair Value],[(1231)At December 31, 2019, Velasco Corporation had the following investments: Investment in debt securities, due 3/31/20 (purchased 12/31/19) P600,000 Investment in debt securities, due 1/31/20 (purchased 1/1/19) 900,000 Investment in ordinary shares acquired on 12/1/19 which are intended for short-term profit purposes. The company intends to sell the same by 2/28/20. 400,000 Investment in ordinary shares acquired on 12/31/18 which the client is intending to hold as available-for-sale. 300,000 Investment in preference shares acquired on 12/1/19 redeemable at the option of the issuer by 2/28/20. 300.000 90-day certificate of deposit, due 2/28/20 (acquired on 12/10/19) 500,000 180-day certificate of deposit, due 3/15/20 (acquired on 9/16/19) 800,000 Velasco Corporation should report cash equivalents in its December 31, 2019 statement of financial position atJackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance: Debit Credit Cash $ 500 Accounts receivable 600 Inventory 900 Buildings (net) (5 year life) 1,600 Equipment (net) (2 year life) 1,000 Land 900 Accounts payable $ 400 Long-term liabilities (due 12/31/22) 1,900 Common stock 1,000 Additional paid-in capital 700 Retained earnings 1,500 Total $ 5,500 $ 5,500 Net income and dividends reported by Clark for 2020 and 2021 follow: 2020 2021 Net income $ 120 $ 140 Dividends 40 50 The fair value of Clark’s net assets that differ from their book values are listed below: Fair Value Buildings $ 1,200 Equipment 1,350 Land 1,300 Long-term liabilities 1,750 Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. A. Compute the amount of Clark’s equipment that would be reported in a December 31, 2020, consolidated balance sheet.…