In 2023, Unlimited Tech had net operating income of $7,613,386. In addition to their operating income, they received $1,093,954 in dividend income from their shares in United Corporation. Unlimited Tech owns 15% of all United Corp outstanding shares. Unlimited Tech did not have any interest expense.

In 2023, Unlimited Tech had net operating income of $7,613,386. In addition to their operating income, they received $1,093,954 in dividend income from their shares in United Corporation. Unlimited Tech owns 15% of all United Corp outstanding shares. Unlimited Tech did not have any interest expense.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Presented below are two independent situations: (a) (b) Sheridan Inc. acquired 10% of the 417,000 shares of common stock of Schuberger Corporation at a total cost of $15 per share on June 17, 2022. On September 3, Schuberger declared and paid a $117,000 dividend. On December 31, Schuberger reported net income of $517,000 for the year. (a) Pina Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsaker's 117,000 outstanding shares of common stock at a cost of $16 per share on January 1, 2022. On May 15, Hunsaker declared and paid a cash dividend of $117,000. On December 31, Hunsaker reported net income of $217,000 for the year. Prepare all necessary journal entries for 2022 for (a) Sheridan and (b) Pina. (List all debit entries before credit entries. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries…
1. On January 1, 2018, Any Company paid P18,000,000 for 50,000 ordinary shares of Josh Company which represent a 25% interest in the net assets of Josh. The acquisition cost is equal to the book value of the net assets acquired. Any has the ability to exercise significant influence over Josh. Any received a dividend of P35 per share from Josh in 2018. Josh reported net income of P9,600,000 for the year ended December 31, 2018. In the December 31, 2018 statement of financial position, what should be reported as investment in Josh Company?
7) DeHaan Company owns 40,000 shares of the common stock of Curtis Company. DeHaan decided to divest itself of this investment by distributing the Curtis shares in the form of a property dividend. The dividend ratio is one share of Curtis for every four shares of DeHaan common shares held by shareholders. DeHaan has 160,000 common shares outstanding. On April 15, 2024, the date of declaration, Curtis stock had a par of $5 per share, a book value of $12 per share, and a fair value of $17 per share. Required:Prepare any necessary journal entries. The shares were distributed on May 15, 2024, to stockholders of record on May 1, 2024.
Opus Limited is a CCPC. In 2023, the company received the following dividends: Dividends on Portfolio Investments Dividends from Magnum Inc. [(100%) ($55,000)] Dividends from Masterpiece Ltd. [(40%) ( $100,000)] $ 35,000 55,000 40,000 Opus owns 100% of the shares of Magnum Inc. and 40% of the shares of Masterpiece Ltd. Masterpiece received a dividend refund of $10,000 on its dividend payment, while Magnum received a dividend refund of $15,000. Required: Determine the amount of Part IV Tax payable by Opus Limited for the current year. Part iv tax rate: 38¹3%
2. On January 1, 2018, Noah Company purchased 10% of Sabina Company’s outstanding ordinary shares for P4,000,000. Noah is the largest single shareholder in Sabina and Noah’s officers are a majority of Sabina’s board of directors. Sabina reported net income of P5,000,000 for 2018 and paid dividends of P1,500,000. In its December 31, 2018 statement of financial position, what amount should Noah report as investment in Sabina?
On January 1, 2022, Old Corp. paid P500,000 for 20,000 shares of Hannah Corp's ordinary shares and classified these as HFT securities. Old Co. does not have the ability to exercise significant influence over Hannah Corp. Hannah Corp, declared and paid dividend of PO.50 a share to its stockholders during 2022. Hannah reported a Net Income of P260,000 for the year ended 12.31.2022. The fair value of Hannah share on 12.31.2022 is P27/share. What is the net asset amount (includes investment and related market adjustments) attributable to the investment in Hannah Corp. that will be included on Old Corp.'s statement of financial position as at 12.31.2022? ents Select the correct response: es P 579,000 rs P 569,000 P 540,000 P 530,000 ses Continue > 3
On January 1, 2023, Cullumber Corp. had cash and common shares of $80,000. At that date, the company had no other asset, liability, or shareholders' equity balances. On January 2, 2023, Cullumber paid $60,000 cash for equity securities that it designated as FV-OCI investments. During the year, Cullumber received non-taxable cash dividends of $27,000 and had an unrealized holding gain of $25,000 (net of tax) on these securities. Determine the following amounts for 2023: (a) (b) (c) Net Income /(Loss) Other Comprehensive Income Comprehensive Income (d) Accumulated Other Comprehensive Income (as at the end of 2023) $ $ tA LA
Packard Inc. is a public company. On January 1, 2020 Packard Inc. purchased 10,000 common shares (15%) of Saturn Inc. for $115,000 in cash. Saturn had common shares of $225,000 and retained earnings of $475,000 on this date. Packard considered Saturn a FVTPL investment; as it did not give Packard significant influence. On December 31, 2020 the Saturn shares were trading at $13.00 per share. On January 1, 2021, Packard purchased an additional 25% of Saturn's shares for $217,000 in cash. This second purchase allowed Packard to exert significant influence over Saturn. The following information was available on the date of acquisition: Carrying Value Fair Value Assets not subject to depreciation $205,000 Assets subject to depreciation (10 year useful life) 750,000 Patent (7 year useful life) 35,000 Liabilities 115,000 115,000 Saturn depreciates assets using the straight-line method and has a 35% tax rate. During the two years, Saturn reported the following: Dividends Declared $275,000…
You are given financial statements and a Dupont analysis for Tesco and Ahold. What do you conclude about the two companies’ performances based on these numbers?
Sapphire Jewellery Pty Ltd (SJ) is a resident private company. During the 2023 income year, SJ recorded an accounting profit of $80,000 In addition to the transactions recorded in the financial statements, SJ noted the following: SJ sold shares held as an investment for $45,000. The shares were purchased in 2017 for $ 25,000 Calculate the taxable income of SJ for the 2023 income year. Question 2Select one: $100,000 $ 90,000 $60,000 $70,000
On January 1, 2021, Pancake Co. bought 250,000 ordinary shares of House Co. for P3,000,000, representing 25% of the outstanding shares of House, and allowing Pancake to exercise significant influence over House. Pancake has determined that the book value of House's net assets approximates its fair value. During 2021, House earned a net income of P4,000,000. The entity also declared and paid total cash dividends of P1,000,000 during the year. At the end of the year, there was objective evidence of impairment for the shares. The recoverable amount was determined to be at P2,900,000.
On January 1, 2021, Familia purchased 1,600 ordinary shares of another entity for P2,000,000. At December 31, 2021, the investee’s shares were selling for P1,400 per share. Familia irrevocably designated to classify equity investment at FVOCI. On October 1, 2022, Familia sold half of its shares at P1,800 per share. At December 31, 2022, the shares were selling at P1,900 per share. What amount is recognized in retained in retained earnings as a result of the disposal in 2022