value and the fair value of John's net assets were $12.900.000 On July 1, 2026 Riverbed paid $2.760.000 for 46,000 additional shares of John common stock, which represented a 20% investment in John As a result of this transaction, Riverbed owns 30% of John and can ex significant influence over John's operating and financial policies John reported the following net income and declared and paid the following dividends Net Income Dividend per Share $600.000 $20,000 880.000 Year ended 12/31/25 Six months ended 6/30/26 Six months ended 12/31/26 None Investment in Eton John Corp None $1.50 Determine the ending balance that Riverbed Co should report as its investment in John Corps at the end of 2026 the case, the book

Green Corp. owns 30% of the outstanding common stock and 100% of the outstanding noncumulative nonvoting preferred stock of Axel Corp. In the current year, Axel declared dividends of $100,000 on its common stock and $60,000 on its preferred stock. Green exercises significant influence over Axel's operations. What amount of dividend revenue should Green report in its income statement for the current year ended December 31? A. $0 B. C. D. $30,000 $60,000 $90,000

QUESTION 2. On September 5, 2019, Soy Company, the 80%-owned subsidiary of Pro Corporation, declared a cash dividend of$1 a share on its 100,000 outstanding shares of S1 par common stock. The dividend was paid on September 26, 2019. For the fiscal year ended September 30, 2019, the first year of the Pro-Soy affiliation, Soy had a net income of $300,000. In addition to goodwill of S80,000, the September 30, 2002 (date of the business combination) working paper elimination (in journal entry format) for Pro Corpo- ration and subsidiary included the following debits: $60,000 Inventories (first-in, first-out cost)-Soy Plant assets (net) (all depreciable over a 10-vear economic life, $80,000 $20,000 straight-line method)-Soy Discount on long-term debt (5-year remaining term)-Soy Prepare journal entries for Pro Corporation on September 5, 26, and 30, 2019, to record its equity method of accounting for the operating results of Soy Company. Use the straight-line method of amortization for…

During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Click here to view the dividend received deduction table. Question Content Area a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year? Swallow's taxable income after deducting the dividends received deduction is $fill in the blank fd6fd0f8303e049_2 . Feedback Area Feedback The purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. Without the deduction, income paid to a corporation in the form of a dividend would be taxed to the recipient corporation with no corresponding deduction to the distributing corporation. Later, when the recipient corporation paid the income to its shareholders, the income would again be subject to taxation with no corresponding…

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Garrison holds a controlling interest in Robertson’s outstanding stock. For the current year, the following information has been gathered about these two companies:                               Garrison     RobertsonSeparate             $300,000      $200,000operating income                        (includes $50,000 intra-entity gross profit in ending inventory)Dividends paid ...32,000            50,000Tax rate . . . .  . . . . . 40%               40% Garrison uses the initial value method to account for the investment in Robertson. Garrison’s separate operating income figure does not include dividend income for the current year.a. Assume that Garrison owns 80 percent of Robertson’s voting stock. On a consolidated tax return, what amount of income tax is paid?b. Assume that Garrison owns 80 percent of Robertson’s voting stock. On separate tax returns, what total amount of income tax is paid?c. Assume that Garrison owns 70 percent of Robertson’s voting stock. What total amount of income…

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Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart's entry to record the Melody dividend includes a? O Debit to Cash for $50,000 O Credit to Cash for $17,500 Credit to Investment Revenue for $50,000 O Credit to Equity Method Investments for $17,500

On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial information for these two companies for the years 2020 and 2021 follows  (credit balances indicated by parentheses):       2020     2021   Abbey Company:             Sales $ (698,000 ) $ (1,000,000 ) Operating expenses   468,000     524,000   Intra-entity gross profits in ending inventory (included in above figures)   (159,000 )   (171,000 ) Dividend income—Benjamin Company   (9,000 )   (40,500 ) Benjamin Company:             Sales   (250,000 )   (289,000 ) Operating expenses   133,000     151,000   Dividends paid   (10,000 )   (45,000 )     Assume that a tax rate of 21 percent is applicable to both companies.   On consolidated financial statements for 2021, what are the income tax expense and the income tax currently payable if Abbey and Benjamin file a consolidated tax return as an affiliated group? On consolidated financial statements for 2021, what are the income…

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