Z acquired a 30% interest in K Cor. K declared $200,000 dividends in 2016 and reported its income for $500,000. T's Investment in K account for 2016 should increase by $------ O a. $90000 O b. O C. O d. $150000 $300000 $200000

Z acquired a 30% interest in K Cor. K declared $200,000 dividends in 2016 and reported its income for $500,000. T's Investment in K account for 2016 should increase by $------ O a. $90000 O b. O C. O d. $150000 $300000 $200000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: X company owns 35% of common stock of Y Co. and used the squirt meth to acct for the investment.…

A: Share of dividend amount will not reduce income from investment. The share of dividend will reduce…

Q: The market value of Investee is $1,000,000. Investor owns 20% of Investee's common stock. Investee…

A: Under the equity method, the investment is initially recorded at historical cost, and adjustments…

Q: Wildhorse Company acquired a 50% interest in Blossom Corporation on December 31, 2020 for $1865000.…

A: An investing account functions similarly to a special wallet or container where you save the cash…

Q: 2017 2020 EBITDA 900 1100 Assume…

A: Calculate Value of Company as: Value of Company=Multiple×EBITDA2017=8×900=$7,2002020=8×1100=$8,800…

Q: 25.Lotus Company Ltd decided to issue 100 000 ordinary shares for $3.00 each, payable in…

A: INTRODUCTION: The funds raised by the sale of preferred or ordinary shares make up a company's share…

Q: Current Attempt in Progress Kingbird Co. invested $990,000 in Oriole Co. for 25% of its outstanding…

A: The income share increases the investment balance. The dividend share decreases the investment…

Q: 14. On its December 31, 2017, balance sheet, Trump Company reported its investment in equity…

A: An unrealized gain is an increase in the value of an asset or investment that has not been sold by…

Q: A corporation using the cost method of accounting for its investment in a 80%–owned investee, which…

A: Cost method of accounting for investment means where the investment is carry at historical cost…

Q: Revenue €300 Cost €270 Declared dividends to shareholders A Additional deposit by shareholders €35…

A: The question is related to Accounting Equation. The details are given.

Q: Kofi Nti Limited issued 12% debenture at discount, redeemable in 4 years. The debenture was issued…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Palmer Company purchased 90% of the outstanding common stock of Stevens Company on January 1, 2014…

A: Journal Entries : YearParticulars Debit ($) Credit ($) 2014Investment in Stevens Company…

Q: Ma1. Investor owns 10% of Investee shares and has the ability to exert significant influence. In…

A: The cash flow direct method determines changes in cash receipts and payments, which are reported in…

Q: Instrument Corporation has the following investment which was held throughout 2021–2022. Assume the…

A: Investment in Equity A company's investment in the company stock of another business is referred to…

Q: 15. The Piano Man reported Net Income of $1,060,000 in 2024. Included as components of 2024 Net…

A: To calculate the net cash provided by operating activities, we need to start with net income and…

Q: Question: Parent Co. invested $1,070,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays…

A: Step 1: Step 2: Step 3: Step 4:

Q: ega Corp. declared a $50,000 cash dividend on July 1, 2020, with the following related information:…

A: Dividends - It is the distribution of profits by a company to its shareholders. When a company…

Q: In 31/12/2019 the balance of retained earnings is 140 000 ID. , the net income for the year 2020 s…

A: Retained earnings seem to be a firm's accumulated income to date, minus dividend payment or any…

Q: Answer

A: Calculating Equity Held in Investments & Dividends ReceivedA company (say company A) may make…

Q: Strawberry company purchased 70% of the outstanding voting share of Apple company at the beginning…

A: given that, Strawberry company purchased 70% of the outstanding voting share of Apple company The…

Q: Calculating income from investments in the middle of the year

A: (Amounts are in thousands) Given investment made in July 2011, Therefore KAR will be entitled for…

Q: Sunland's Organic Product had the following transactions during 2022: 1. Issued $53000 of common…

A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…

Q: Prepare the franking account for Congee Pty Ltd for the year ended 30 June 2023 using the…

A: The franking account is a record of the company's franking credits and debits, which are used to…

Q: The following data will be used to answer Questions 5-8. It will be repeated in each question. It is…

A: GAAP pre-tax income refers to the profit or earnings reported by a company before accounting for…

Q: XYZ Company receives net proceeds of $42,000 on the sale of share investments that cost $39,500. The…

A: An investment seems to be an asset or thing purchased with the intention of earning income or…

Q: Maria Clara equity as of December 31, 2020 consists of the following: Share capital Retained…

A: This query is from the topic of accounting and monetary statements. mainly, it pertains to the…

Q: ne profit. A&B Co. started operations on April 1, 20x1. Mr. A, a partner in A&B Co., is entitled to…

A: Calculation of weighted average capital balance of Mr A : A,s Capital = 1,00,000 ×312 + 79,000 ×312…

Q: Q R and S carry on business sharing the profits in the ratio of 23: 4 respectively. Capitals as on…

A: Average profits of last years means on an average how much profit is getting earned in every year.…

Q: Harrison Company owns 20,000 of the 50,000 outstanding shares of Taylor, Inc. common stock. During…

A: Step 1: Introduction to the Equity Method:The equity method of accounting is used to account for the…

Q: want A and b answer please

Q: A Co. and B Co. are joint venturers of C.Co, a producer of high tech machinery. A and B, each have…

A: Joint ventures is a form of agreement or arrangement between two or more than two persons, in which…

Q: Matthew Company acquired the following portfolio of equity securities through profit or loss during…

A: Long-term Investment: The phrase "long-term investment" refers to an account that a corporation…

Q: investment. During 2008, how much hier ending balance should be for thier ?investment

A: When a corporation acquires another corporation, the accounting treatment of the invested…

Q: 38) Park Company acquired a 90% interest in Southwestern Company on December 31, 2016 for $320,000.…

Q: What amount of gain or loss would YOO-YOO Corporation report in its income statement for the year…

A: Net Gain or loss = Fair Value as on 12/31/22 - Fair Value as on 12/31/21

Q: Howdy Doody Corporation purchased a 25% interest in Ranger Corporation for $1,520,000 on January 1,…

A: Income statement is a financial statement that shows you the company's income and expenditures. It…

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: In case of an entity having significant influence i.e. less than 50% stake in other entity. The…

Q: In 2021, Cromwell Corporation purchased bonds of Oliver Company at par for $300,000 and classified…

A: Investments are those assets which generate income mostly in form of interest. Investments can be…

Q: Quick meals company's profit after tax for the year to 31 December 2020 was OMR 160,000. The…

A: Earning per share: The earning per share (EPS) is the profit per share outstanding. It is determined…

Q: Land Services, Inc. owns 32% of voting stock of World Investments, Inc. During the year 2024, World…

A: A business transaction is documented in the accounting records of the company using a journal entry.…

Q: Question 1 At the beginning of 2016, the statement of financial position of Emerald Berhad is as…

A: Journal is the initial step in recording the financial transaction, date wise as per the dual entity…

Q: In 2020, ABC Inc., a domestic corporation sold shares of stocks for P250,000. The shares was…

A: Capital Gain Tax Importance of the capital gain tax is depends upon the nature of the transaction…

Q: Zach Ltd. produced the following data for the year 2015 – o Interest Income $4,650,000 o Capital…

A: Formula: Tax on interest income = Interest income amount x Tax rate. Tax on Capital gains = Realized…

Q: None

A: Sure, let's break down the amortization schedule for the Space Explore Inc. bond and explain each…

Q: ear Dividends (RM) 2020 3,28 2019 3.01 2018 2.76 2017 2.53 2016 2.32 2015 2.13 Cha owns stock in a…

A: A Dividend is a distribution of profits by the corporation to its shareholders.

Q: A corporation using the equity method of accounting for its investment in a 80%–owned investee,…

A: The question is multiple choice question.A corporation using the equity method of accounting for its…

Q: 10. Sunny Corp. had a net income during 2018 of $200m, and after paying out dividends to…

A: Net income = $200m Opening retained earning = $700m Closing retained earning = $840m

Q: (a) An investor purchased the share of Neptune Corp on 1 Jan 2017 and held the investment until 31…

A: Arithmetic rate of return Arithmetic rate of return for a year is calculated as shown below.…

Question

Z acquired a 30% interest in K Cor. K declared $200,000 dividends in 2016 and reported its income for
$500,000. T's Investment in K account for 2016 should increase by $----
O a.
$90000
O b. $150000
Oc
$300000
Od. $200000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Crane Inc. earns $400000 and pays cash dividends of $100000 during 2020. Blossom Corporation owns 60000 of the 200000 outstanding shares of Crane Inc.How much revenue from investment should Blossom report in 2020? $30000 $150000 $90000 $120000
Vipul k Don't upload any image please
Ma3. Investor owns 10% of Investee shares and has the ability to exert significant influence. In 2022 Investee reported net income of $800,000 and paid cash dividends of $120,000. 1.. If Investor uses the indirect method to present the activities operational: a. It will add $80,000 b. It will add $12,000 c. Will subtract $68,000 d. It will add $68,000 2. If Investor uses the direct method to present the activities operational: a. It will add $80,000 b. It will add $12,000 c. Will subtract $68,000 d. It will add $68,000
Fred corp. declare and pay a dividend on July 1, 2018, amount of $45,000; if the Refundable Dividend Tax on Hand balance on Dec 31, 2017, of $14,000. What is the dividend refund amount, if any? a. $17,250 b. $14,000 c. $19,667 d. $45,000
Please help me to solve this problem
Strawberry company purchased 70% of the outstanding voting share of Apple company at the beginning of 2019 OMR 400,000. The dividend distribution in the year of 2019 OMR 50,000. What is the entry of dividend income? Select one: a. Cash A/C Dr 400,000 Dividend Income Cr 400,000 b. Cash A/C Dr 280,000 Dividend Income Cr 280,000 С. Cash A/C Dr 50,000 Dividend Income Cr 50,000 O d. Cash A/C Dr 35,000 Dividend Income Cr 35,000
Pronghorn Co. invested $1,070,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividene each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 1,070,000 99,000 (a) How much was Pronghorn Co.'s share of Stellar Co's net income for the year? Net income 29,700 Total net income (b) What was Stellar Co's total net income for the year? 428000 Total Dividends. $ 396000 (c) What was Stellar Co's total dividends for the year? 128400
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
Insta Corp. invests in shares of other companies in 2015 for generating profit as shown below; Market Value Dec. 31 Security Purchase date 2016 Date sold Selling price Cost 2015 DT June 2015 48.000TL 54.000TL T 60.800TL Feb. 2017 59.600TL EA June 2015 116.000TL 104.800TL March 114.000TL 2016 a. Classify each investment as trading or available for sale. DT: EA: b. Prepare the necessary journal entries for Insta Corp. (Hint: entries for purchase of securities, adjusting entries at Dec.31 2015 and 2016, entries for sale of securities).
On 1/1/2019 P Company acquired 70% of S company for 400000 JD. On 31/12/2019 S company reported net income 41000 ID and declared dividends 11000 JD. Positive differences is 35000 JD relating to assets with 5 years life. Using the complete equity method investment balance on 31/12/2019 is: Select one: O a. 370600 Ob. 369200 O c. 367800 d. 366400
Answer is c. $125,000 Please explain the reasoning and calculations
A trucking company is required to determine the cost of capital for its common shares. The company expects to pay a dividend of $ 1.45 by the end of the year (2021). The following table shows the dividends for the last 5 years. Year Dividend2020 $ 1.32019 1.22018 1.1 2017 1 2016 0.98 2015 0.90 After administrative costs, the company expects to earn $ 25 per share from a new issue and has a 15% market rate. a) Determine the growth rate of dividends from 2016 to 2020. (g =?) b) Determine the value or price of the shares