Owner, Juan invested an initial capital amounting P50,000 in order to put up his Clean company. During the first year of operations (2016), the company had a loss of P25,000. Because of this, Juan invested additional capital amounting to P50,000 in 2017. In the second year (2017), the company had a net income of P100,000 and Juan withdrew P10,000 for personal use. Prepare the Statement of Changes in Equity for the year 2017.

. The common stock of Wilson, Inc. is owned by 20 stockholders. Doe & Doe, CPAs audited Wilson's financial statements as of December 31, 2017. The audit firm rendered an unqualified opinion on the financial statements. Relying on Wilson's financial statements, which showed net income for 2017 of $1,500,000, Peters purchased 10,000 shares of Wilson stock for $200,000 on April 10, 2018. Wilson's financial statements contained material misstatements. Because Doe & Doe did not carefully follow professional auditing standards, it did not discover that the statements failed to reflect unrecorded expenses, which reduced Wilson's actual net income to $800,000. After disclosure of the corrected financial statements, Peters sold his shares for $100,000, which was the highest price he could obtain. Peters has brought an action against Doe & Doe under federal securities law and common law. Answer the following, setting forth reasons for your conclusions: Will Peters prevail on his…

In the past several years, Shakira had loaned money to Shakira Incorporated (an S corporation) to help the corporation keep afloat in a downturn. Her stock basis in the S corporation is now $0, and she has deducted $42,750 in losses, reducing her debt basis from $142,500 to $99,750. Things appear to be turning around this year, and Shakira Incorporated repaid Shakira $28,500 of the $142,500 outstanding loan. What is Shakira's income, if any, on the partial loan repayment?

Nico bought 100 shares of Cisco Systems stock for R24.00 per share on January 1, 20019. He received a dividend of R2.00 per share at the end of 2020 and R3.00 per share at the end of 2021. At the end of 2021, Nico collected a dividend of R4.00 per share and sold his stock for R18.00 per share. What was Nico's realized holding period return?   A. -12.5% B. +12.5% C. -16.7% D. +16.7%

The Trump Companies Inc. has ownership interests in several public companies. At the beginning of 2016, the company’s ownership interest in the common stock of Milken Properties increased to the point that it became appropriate to begin using the equity method of accounting for the investment. The balance in the investment account was $31 million at the time of the change. Accountants working with company records determined that the balance would have been $48 million if the account had been adjusted for investee net income and dividends as prescribed by the equity method. Required: 1. Prepare the journal entry to record the change in principle. 2. Briefly describe other steps Trump should take to report the change. 3. Suppose Trump is changing from the equity method rather than to the equity method. How would your answers to requirements 1 and 2 differ?

An investor in Sony purchased the stock last year for $22.16. Today, the investor was able to sell the stock for $34.25. What capital gain did the investor earn in the past year?

15. In 2016, Tom loaned his friend Janelle $5,000 to invest in various stocks. Janelle signed a note to repay the principal with interest. In 2017, the stock market plunged and Janelle incurred large losses. In late 2017, Janelle declared personal bankruptcy and Tom was unable to collect any of the loan. Tom had no other gains or losses in 2016 or 2017. His income from wages in both 2016 and 2017 was $50,000. The result is: a. Tom deducts a business bad debt of $5,000 in 2016. b. Tom deducts a $5,000 capital loss in 2016. c. Tom deducts a business bad debt of $3,000 in 2016 and carries $2,000 over to subsequent years. d. Tom deducts a $3,000 capital loss in 2016 and carries $2,000 over to subsequent years. e. Tom must amend her 2015 tax return to deduct the loss.