During the year, Donahue Company purchased land and building by issuing 50,000 ordinary shares with P 100 par value. On acquisition date, the shares had a market value of P 140 per share and the land had a fair value of P 2,000,000. No available fair value for the building on that date. During the year, Donahue also received land from a shareholder to facilitate the relocation of its main offices in the city. Donahue paid P 50,000 special tax assessment and P 50,000 legal costs related to transfer the donated land. The donated land is fairly valued at P 1,800,000. What is the total cost of the land acquired during the year? P 3,600,000 P 3,900,000

Ron Corporation issued 10,000 shares of its P25 par treasury ordinary shares for a parcel of land intended as a future plant site. The treasury shares were acquired by Ron at a cost of P30 per share.  Ron's ordinary share had a fair value of P40 per share on the date of acquisition.  Ron received P50,000 from the sale of scrap when an existing structure on the site was razed.  At what amount should the land be carried? P350,000 P250,000 P300,000 P400,000

On January 2, Year 1 Parent Company paid $1,200,000 for 100% of the voting common stock of Sub Corp. At the time of the investment, Sub Corp had net assets with a book value of $800,000 and fair value of $1,000,000. The fair value increase is attributable to the building and will be amortized over 10 years. During year 1, Sub earned net income of $100,000 and paid dividends of $20,000. Any excess cost over fair value is attributable to goodwill with an indefinite life. What is the amount of goodwill from Parent's investment in Sub? O $200,000 O $400,000 O $1,200,000 O $20,000 QUESTION 2 What is the balance in Parent's investment account at December 31, Year 1? O $1,260,000 O $1,200,000 O $1,340,000 O $1,280,000

The Berry Corporation owns a building with a basis of $40,000 that is subject to a debt of $ 160,000. The FMV of the building is $100,000. Berry distributes the property in a nonliquidating distribution (along with the debt) to Delia, its sole shareholder. What is the amount of the distribution to Delia? a. $80,000. b. $50,000. c. zero. d. $30,000. e. none of the above.

Concord Corporation purchased for $285,000 a 25% interest in Murphy, Inc. This investment enables Concord to exert significant influence over Murphy. During the year, Murphy earned net income of $185,000 and paid dividends of $54,000.Prepare Concord’s journal entries related to this investment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record the purchase enter a debit amount enter a credit amount enter an account title to record the purchase enter a debit amount enter a credit amount (To record the purchase.)     enter an account title to record the net income enter a debit amount enter a credit amount enter an account title to record the net income enter a debit amount enter a credit amount (To record the net income.)…

X Corporation was formed in Year 1.    In Year 1, X Corporation:   (i) received $100,000 of revenue, (ii) a $20,000 dividend distribution from Y Corporation (X owned less than 1% of Y and received a $10,000 DRD) (iii) purchased a Section 179 asset for $10,000, (iv) paid $21,000 of federal tax and (v) distributed $10,000 cash to each of its two shareholders A and B. In Year 2, X received $50,000 of revenue and contributed $12,000 to cash to a qualified charity.  X made no distributions in Year 2. a.  What is X' Accumulated E&P at the beginning of Year 2? (Write your answer as a number only, i.e. $5,000) b.  What is X' Accumulated E&P at the beginning of Year 3?  (Write your answer as a number only, i.e. $12,000)

Sandhill Corporation purchased for $288,000 a 25% interest in Murphy, Inc. This investment enables Sandhill to exert significant influence over Murphy. During the year, Murphy earned net income of $173,000 and paid dividends of $54,000. Prepare Sandhill's journal entries related to this investment. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Concord Corporation purchased for $288,000 a 25% interest in Murphy, Inc. This investment enables Concord to exert significant influence over Murphy. During the year, Murphy earned net income of $173,000 and paid dividends of $54,000. Prepare Concord's journal entries related to this investment. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record the purchase.) (To record the net income.) (To record the dividend.)

On January 1, 2021, DONNER Corporation purchased investment securities for ₱1,200,000. The securities are classified as trading. By December 31, 2021, the securities had a fair value of ₱1,680,000 but had not yet been sold. The company recognized a ₱320,000 restructuring charge during the year. The restructuring charge is composed of an impairment write-down on a manufacturing facility. Tax rules do not allow a deduction for the write-down unless the facility is actually sold. The facility was not sold by the end of the year. Excluding the trading securities and the restructuring the charge, income before taxes for the year was ₱4,000,000. The income tax rate for the current year and future years is 30%. What is DONNER's current tax expense?

Pronghorn Corporation purchased for $ 322,000 a  30% interest in Murphy, Inc. This investment enables Pronghorn to exert significant influence over Murphy. During the year, Murphy earned net income of $ 183,000 and paid dividends of $ 60,000.Prepare Pronghorn’s journal entries related to this investment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record the purchase enter a debit amount enter a credit amount enter an account title to record the purchase enter a debit amount enter a credit amount (To record the purchase.)     enter an account title to record the net income enter a debit amount enter a credit amount enter an account title to record the net income enter a debit amount enter a credit amount (To record the…