Sunland Company acquired a 50% interest in Oriole Corporation on December 31, 2020 for $1835000. During 2021, Oriole had net income of $1060000 and paid cash dividends of $280000. At December 31, 2021, the balance in the investment account should be $2365000. $2225000. $1835000. $2505000.

Live Large Inc. had the following transactions involving non-strategic investments during 2020. 2020     Apr. 1   Paid $119,000 to buy a 90-day term deposit, $119,000 principal amount, 7.0%, dated April 1.   12   Purchased 4,900 common shares of Blue Balloon Ltd. at $22.50. June 9   Purchased 3,700 common shares of Purple Car Corp. at $51.50.   20   Purchased 1,650 common shares of Yellow Tech Ltd. at $16.00. July 1   Purchased for $86,894 a 9.0%, $84,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 8.4%. Interest is paid semiannually beginning December 31, 2020. Live Large Inc. plans to hold this investment until maturity.   3   Received a cheque for the principal and accrued interest on the term deposit that matured on June 30.   15   Received a $0.95 per share cash dividend on the Blue Balloon Ltd. common shares.   28   Sold 2,450 of the Blue Balloon Ltd. common shares at $26.25. Sept. 1   Received a $3.00 per share cash…

At December 31, 2020 year-end, Lapwing Corporation's investment in Ground Inc. was $200,000 consisting of 80% of Ground's $250,000 stockholders' equity on that date. On April 1, 2021, Lapwing sold 20% interest (one-fourth of its holdings) in Ground for $65,000. During 2021, Ground had net income of $75,000 (earned uniformly) and on July 1, 2021, Ground paid dividends of $40,000. Lapwing uses the equity method to account for the investment.  Required: 1. What is the gain or loss on sale of the 20% interest? 2. Record the journal entries for Lapwing for the year ending December 31.

On January 1, 2020, Churl Company paid $1,700,000 for a 40% stake in Flip Company. The Flip Company's stockholders equity on January 1 and December 31, 2020 is shown below: Share capital Revaluation surplus Retained earnings January 1 3,000,000 1,000,000 December 31 3,000,000 1,300,000 1,500,000 By Jan 1, 2020, all of Flip's identified assets and liabilities were recognized at fair value. During the current fiscal year, the flip firm recorded a profit before income tax of 1,000,000 and paid dividends to stockholders of 150,000. The revaluation excess is the outcome of Flip Company's land reassessment on December 31, 2020. Flip displays OCI net of any relevant income tax. Furthermore, Flip Company provides depreciation using the declining balance approach, whereas Churl Company employs a straight line. The cumulative depreciation would have been enhanced by 200,000 if Flip Company had used the straight line. The tax rate is set at 35%. On December 31, 2020, Churl Company will report its…