has 15% ownership of a and adopts the fair value method in it's recognition for this investment. the investee reported net income of $110,000 for 2021 and paid dividends of $60,000 on November 1, 2021 how much equity income should the company recognized in the investment in 2021 a. 16,500 b. 9,000 c. 25,500 d. 7,500 A company corporation

has 15% ownership of a and adopts the fair value method in it's recognition for this investment. the investee reported net income of $110,000 for 2021 and paid dividends of $60,000 on November 1, 2021 how much equity income should the company recognized in the investment in 2021 a. 16,500 b. 9,000 c. 25,500 d. 7,500 A company corporation

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 23E

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4. An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Group of answer choices Nil P40,000 P160,000 P420,000
Question: The total amount reported in 2019 profit or loss is? On January 1, 2019, an entity purchased 15,000 shares of another entity representing a 12% interest for P2,500,000. The entity elected to measure the investment at FVOCI. The investee reported net income of P3,000,000 and paid dividends of P15 per share in 2019. The fair value of the investment was P2.800.000 on December 31, 2019. On January 1, 2020, the entity paid P3,000,000 for 16.250 additional shares of the investee. The fair value of the 12% interest did not change on this date. The fair values of the identifiable net assets of the investee equal carrying amount of P15,000,000 on such date except for land whose fair value exceeded carrying amount by P3,000,000. For the year ended December 31, 2020, the investee reported net income of P6,000,000 and paid dividends of P20 per share.
Question: The carrying amount of the investment on December 31, 2020? On January 1, 2019, an entity purchased 15,000 shares of another entity representing a 12% interest for P2,500,000. The entity elected to measure the investment at FVOCI. The investee reported net income of P3,000,000 and paid dividends of P15 per share in 2019. The fair value of the investment was P2.800.000 on December 31, 2019. On January 1, 2020, the entity paid P3,000,000 for 16.250 additional shares of the investee. The fair value of the 12% interest did not change on this date. The fair values of the identifiable net assets of the investee equal carrying amount of P15,000,000 on such date except for land whose fair value exceeded carrying amount by P3,000,000. For the year ended December 31, 2020, the investee reported net income of P6,000,000 and paid dividends of P20 per share.
1. What is the gain on remeasurement to equity to be recognized for 2021?a. 1,500,000b. 4,500,000c. 2,250,000d. 0 2. What is the goodwill arising from the acquisition on January 1, 2021?a. 2,250,000b. 1,250,000c. 1,350,000d. 350,000 3. What is the carrying amount of the investment in associate on December 31, 2021?a. 11,250,000b. 11,800,000c. 12,000,000d. 14,300,000
On January 1, 2017, Tenants Company acquired as a long term investment for P5,600,000 a 40% interest in an investee when the fair value of the net assets was P14,000,000. The investee reported the following results of operation: 2017 (4,000,000) 2018 (5,600,000) 2019 (6,400,000) 2020 3,200,000 What amount should be reported by tenants as investment income for the year 2020?
Difficult Company acquiredan equity instrument for P3,600,000 on March 31, 2020 to be measured at fair value through other comprehensive income. The direct costs incurred amounted to P630,000. On December 31, 2020, the fair value of the instrument was P4,950,000 and the transaction costs that would be incurred on the sale of the investment were estimated at P540,000. What amount of unrealized gain or loss on these securities should be reported in other comprehensive income for the year 2020?
Cloud 9 Inc. has equity securities designated as at fair value through profit or loss that were purchased during 2020. At the end of 2020, the securities had a total fair value of P525,000. As of December 31, 2021, the cost and fair values are as follows: Investment Cost Fair Value 1 P100,000 P 90,000 2 190,000 210,000 3 250,000 235,000 The gain or loss that would be reported in profit or loss as a result of the valuation of the securities at the end of 2021 is? A P5,000 B P25,000 c) P10,000 D P20,000
Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive income
29. the assets and liabilities of R were stated at their fair values when A acquired it's 80% interest and the fair value method was used to initially measure the NCI. A uses the cost method to account for its investment in R. Net income and dividends for 2021 for the affiliated companies were: A Corp. R Corp. Net Income P105,000 P31,500 Dividends paid 63,000 17,500 Dividends Payable, 1/1 20,000 9,250 Dividends Payable 12/31 31,500 8,750 Retained Earnings of A Corp. in the separate FS at the beginning of the year is P420,000. End of the year evaluation indicates P3,000 impairment in goodwill. The consolidated retained earnings at December 31, 2021 is:
On January 1, 2021, the fair values of CHAESOO Inc. net assets were as follows:Current assets P100,000Equipment 150,000Land 50,000Buildings 300,000Liabilities 80,000On January 1, 2021, BLACKPINK Corp. purchased the net assets of CHAESOO by issuing 100,000shares of its P1 par value stock when the fair value of the stock was P6.20. It was further agreed thatBLACKPINK would pay an additional amount on January 1, 2023, if the average income during the2- year period of 2021 – 2022 exceeded P80,000 per year. The expected value of this consideration wascalculated as P184,000; the measurement period is one year. Requirement:Compute for the Goodwill or (Gain on Bargain Purchase) on January 1, 2021.
If answered within 30mins,it would be appreciable!! Answer all the subparts a,b,c On December 31, 2020, CFR Co. provided the following information as at December 31, 2020 about its investment accounts that it acquired for trading purposes:Carrying Amount Fair ValueABC Ltd. shares $15,000 $17,500Ace Ventura Corp. shares 24,300 22,500Shrek Ltd. Shares 75,000 80,200During 2021, Ace Ventura Corp. shares were sold for $23,000 and 50% of the Shrek shares were sold for $42,000. At the end of 2021, the fair value of ABC shares was $19,200 and Shrek Ltd. was $41,000. CFR follows IFRS.Required:a. Prepare the adjusting entry for December 31, 2020, if any.b. Prepare the entry for the Ace Ventura and Shrek sales.c. Prepare the adjusting entry for December 31, 2021, if any.
On December 01, 2021, SEVENTY-SEVEN Corporation declared equipment with carrying amount of P1,300,000 as property dividend to be distributed on January 31, 2022. The equipment had the following fair value on the following dates: December 01, 2021 1,500,000 December 31, 2021 1,600,000 January 31, 2022 1,900,000 Journal entry on December 31,2021 should include credit to: