Property dividends KAKAYANIN Company owns 15% of the outstanding ordinary shares of KHO Corp. On November 1, 2021, KHO declared its inventory as property dividends. Data relating to the fair values of the inventory follow: Date Total Fair Values of Property DividendsNovember 1, 2021 250,000December 31, 2021 450,000February 15, 2022 410,000How much is the dividend income to be recognized in 2021? Prepare all the necessary entries at the date of declaration, date of record and date of payment.

Dividend ncome for 2021 =Fair value of property dividends on Nov 1, 2021 × Holding in ordinary…

Answered: Property dividends KAKAYANIN Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Property dividends

KAKAYANIN Company owns 15% of the outstanding ordinary shares of KHO Corp. On November 1, 2021, KHO declared its inventory as property dividends. Data relating to the fair values of the inventory follow:

Date	Total Fair Values of Property Dividends
November 1, 2021	250,000
December 31, 2021	450,000
February 15, 2022	410,000

How much is the dividend income to be recognized in 2021?
Prepare all the necessary entries at the date of declaration, date of record and date of payment.

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