On January 1.2019 an investor bought 400 shares of Absaroka, inc for $4 per nhare On Jarry 3 2020 he ieter sold the stock r per shaie The stock pad a terly didend of 50 31 per shre Hw mh de d he st ean on ts linvestment and ansuming the invest pays a ta a of 15% on dividends and cpal gains, how muh w the pay income tas dn this aaction? The amount hefore taxes) the ivestor earmed un iwestments Round to the neart dl) Rund to the ewt Assuning a tax rate of 15 he amount she wil pay in incame taxes on this tranacon

On January 1.2019 an investor bought 400 shares of Absaroka, inc for $4 per nhare On Jarry 3 2020 he ieter sold the stock r per shaie The stock pad a terly didend of 50 31 per shre Hw mh de d he st ean on ts linvestment and ansuming the invest pays a ta a of 15% on dividends and cpal gains, how muh w the pay income tas dn this aaction? The amount hefore taxes) the ivestor earmed un iwestments Round to the neart dl) Rund to the ewt Assuning a tax rate of 15 he amount she wil pay in incame taxes on this tranacon

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 2P: Otter Tail, Inc., began operations in January 2015 and had the following reported net income or loss...

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On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of 200,000. The bonds mature in 10 years. Interest is paid semiannually on March 31 and September 30. The proceeds from the bond issuance were 205,294.53 to yield 8.6%. Ball Company has a December 31 fiscal year-end and does not use reversing entries. Required: 1. Prepare journal entries to record the issuance of the bonds and the interest payments for 2019 and 2020 using the effective interest method. 2. Prepare journal entries to record the issuance of the bonds and the interest payments for 2019 and 2020 using the straight-line method.
Otter Tail, Inc., began operations in January 2015 and had the following reported net income or loss for each of its 5 years of operations: At December 31, 2019, Otter Tails capital stock was comprised of the following: Otter Tail has never paid a cash or stock dividend. There has been no change in the capital accounts since Otter Tail began operations. The appropriate state law permits dividends only from retained earnings. Required: Prepare a worksheet showing the maximum amount available for cash dividends on December 31, 2019, and how it would be distributable to the holders of the common shares and each of the preferred shares. Show supporting computations in good form.
12. On January 1.2020. Animosity Compony purchased 50000 shares of another enfify for P3,800,000. On October 1,2020, frie enfify ieceived 50,000 stock rghts Trom the investee. Each right entities the holder to acquire one share for P80. he market price of investee's stiares wos Pi00 mmediafely before fhe rights were- 15Sued and P90 immediotely ofter the rights were issued. On December 1.2020. ihe entity exercised aff stock rights. On Decembe 31,2020, the antity sold 25,000 shares at P90per share. The stock rights are not accounted for separately. If the FIFO approach is used.whatis the gain on sale of investment that should be recognized in 20207 a. 350.000 b. 300,000
Pacquired an 80% of S Company at a cost of $200,000 on January 1, 2020. S reported net income in 2020 of $60,000 and in 2021 of $40,000. P received $15,000 dividends from S in 2020 and $25,000 in 2021. P uses the equity method to record its investment. P should record "equity in S income" during 2021 of Select one: O a. $32,000. Ob. $40,000. Oc. $25,000. O d. $7,000.
Alexis Company bought the shares of Gabriel Company classified as equity Investments at fair value through other comprehensive income, as follows:April 17,2019 1,000 shares at P84July 16, 2019 2,000 shares at P90Market value per share of Gabriel Company shares at December 31, 2019 was P92. The following were the transactions for 2020: January 10 Received cash dividend at P4 per shareJune 20 Received 5% bonus issueDecember 10 Sold 1,200 shares at P105 per share1. How much is the total dividend revenue for the year 2020? a. P0 b. P12,000 c. P13,800 d. P25,800 2. How much is the gain on the sale of the shares on December 10? a. P15,600 b. P18,000 c. P20,857 d. P25,200
Harrison Co. purchases 5,000 of the 50,000 outstanding ordinary shares of Taylor, Inc for £500,000 on January 1, 2019. In 2019, Taylor earns a net income of £800,000 and pays cash dividends of £640,000. The market price per share was £132 on December 31, 2019, what is the investment balance at year-end? O a. 564,000 O b. 660,000 O c. 516,000 O d. 500,000
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Benevolent Company had the following transactions: 2020 Aug. 1Purchased 1,000 shares of Star Company for P60,000. Oct. 1Purchased 8,000 shares of Star Company for P560,000. 2021 July 1Purchased 6,000 shares of Star Company for P480,000. Oct. 1Sold 5,000 shares of Star Company for P500,000. Use FIFO. 2022 Feb. 1Received 50% share dividend.Nov. 1Received share rights to purchase one new share at P60 for every 5rights tendered. On this date, the right is quoted at P10. Dec. 1Sold all share rights at P15 per right. Required:a.Prepare journal entries to record the transactions using average and FIFO. The share rights are accounted forseparately
Pacquired a 70% of S on January 1, 2020, for S380,000. During 2020 S had a net income of $30,000 and paid a cash dividend of $10,000. Applying the cost method would give a balance in the Investment account at the end of 2020 of: Select one: $394,000 $400,000 O $380,000 $373,000
Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (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.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…