On January 1, 2020, Lovely Company paid P1,200,000 for 40,000 ordinary shares of Lonely Corporation which represent 25% investment in the net assets of Lonely. Lovely has the ability to exercise significant influence over Lonely. Lovely received a dividend of P3 per share from Lonely in 2020. The reported profit of Lonely for the year ended December 31, 2020 was P640,000. The balance of Lovely’s investment in Lonely at December 31, 2020 should be a. 1,480,000 b. 1,360,000 c. 1,240,000 d. 1,200,000
Q: Lauren, an unmarried taxpayer
A: IRA is Individual Retirement Arrangment allows the employees to set asie some…
Q: Use double-declining balance method of depreciation to prepare a depreciation schedule for a new…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: SAR Research Associates reports the following intangible assets on its December 31 balance sheet…
A: A journal entry in accounting is a record of a financial transaction that documents the debit and…
Q: 1. On July 6, Vaughn Company acquired the plant assets of Doonesbury Company, which had dis…
A: Journal entries provide a clear and detailed record of all the financial transactions that take…
Q: Advertising Expense Utilities Expenses Maintenance and Repairs Expense Delivery Expense Rent Expense…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Modern Corporation granted 95,000 stock options to certain executives on January 1, 2022. The…
A: When a company grants stock options to its employees or executives, it incurs a compensation expense…
Q: prepare a statement of cash flow using indirect method
A: Cash flows statement is one of the financial statement being prepared in business. It shows all cash…
Q: 0 Required information [The following information applies to the questions displayed below.] Hart…
A: The system where standards are prepared which are used to match the actual performances with the…
Q: Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: The tax basis entries above add up to $625,000, not $645,000
A: Under U.S. federal tax law, the tax basis of an asset is generally its cost basis. Determining such…
Q: Tri-Star Products Inc. had the following financial summary information for the operating year…
A: The cash flow from operating activities include the cash flow from day to day transactions of the…
Q: Corporation has 3,000 shares of 8%, $100 par value preferred stock outstanding on Dec31, 2022 when…
A: Dividend: The dividend is the sum of the amount paid by the company to its shareholders. Such an…
Q: On January 1, the Matthews Band pays $67,000 for sound equipment. The band estimates it will use…
A: The value of an asset is equally decreased over each period with the straight-line depreciation…
Q: At December 31, Assets Current assets Cash and cash equivalents Accounts receivable Less Allowance…
A: The debt-to-total-assets ratio reveals how much of a firm is owned by creditors (those it has…
Q: The flexible budget direct materials formula is calculated by: O Standard quantity allowed for…
A: The difference between actual Amount of item and flexible budget amount is flexible budget…
Q: These types of services may be reported as off-balance sheet items except: a. Intangible assets…
A: Off-balance sheet items are assets or liabilities that are not shown on a company's balance sheet…
Q: On November 30, Petrov Company has $127,000 of accounts receivable and uses the perpetual inventory…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Required information [The following information applies to the questions displayed below.] Manuel…
A: OVERHEAD VOLUME VARIANCE Overhead Volume Variance is the Difference Between Standard Cost of…
Q: Knowledge Check 01 On January 1, Year 1, St. Clair Corporation issues 7%, 11-year bonds with a face…
A: A firm or group may issue bonds payable as a form of long-term debt to raise capital from investors.…
Q: Current Position Analysis The following items are reported on a company's balance sheet: Cash…
A: CURRENT RATIO Current Ratio is the Ratio Between Current Assets & Current Liabilities. Current…
Q: Equipment costing $19,200 with a 10-year useful life and an estimated $3,200 salvage value is…
A: A depreciation expense, when charged reduces the value of a fixed asset. In other words,…
Q: Reporting Land Transactions on Statement of Cash Flows On the basis of the details of the…
A: Cash Flow from Investing Activities - This Activity is a part of Cash Flow Statement. This…
Q: [The following information applies to Use the following selected account balances of Delray…
A: Income statement is the one which is prepared by the entity for the purpose of determining the…
Q: On December 31, 2021, Ambient Corporation had 200,000 shares of common stock outstanding. On July 1,…
A: Basic earnings per share = (Net income - preferred dividend)/Weighted average outstanding common…
Q: Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding Paid-in…
A: The dividend is declared to the shareholders from the retained earnings of the business. The net…
Q: and repaid $4,000 principal on an existing promissory note. In March, the company paid $1,400 cash…
A: Cash flow can be calculated using the indirect method by adjusting net income by either adding or…
Q: Zisk Company purchases direct materials on credit. Budgeted purchases are April, $90,000; May.…
A: 25% of March purchases are paid in the month of April.
Q: Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation…
A: Fixed OH Volume Variance = Total Budgeted Fixed OH - Total Fixed OH Applied OH Controllable…
Q: Cash and Noncash Share Issuances Skelton Corporation was organized on June 1. The company's charter…
A: Issue of stock is one of the important source of finance being used in business. It can be common…
Q: Kahn Inc. has a target capital structure of 60 percent common equity and 40 percent debt to fund its…
A: WACC means weighted average cost of capital of funds being used in business. It includes cost of…
Q: fyers,
A: Traditional IRA [Individual Retirement Arrangement] is a qualifed saving plan for…
Q: The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00…
A: The disparity between the estimated cost of direct labour at normal cost (i.e. direct labour hours…
Q: On May 15, Baxtor, Inc. sold $26,000 of merchandise to James, on account. Baxtor could not collect…
A: Accounts receivable means those customer accounts to whom credit sales has been made and amount has…
Q: Record any adjusting entries for depreciation required at December 31. (Credit account titles are…
A: A journal is made to record all business transactions. All the financial transactions are recorded…
Q: Required information [The following information applies to the questions displayed below.] Lewis and…
A: As per the given information: Lewis and Laurie are married and jointly own a home valued = $243,000…
Q: Jasper Company has 56% of its sales on credit and 44% for cash. All credit sales are collected in…
A: A cash Budget is prepared to analyze the cash transaction or cash flow of the business. Non-cash…
Q: Barley Hopp, Incorporated, manufactures custom-ordered commemorative beer steins. Its standard cost…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The overhead…
Q: Sahara Company's Cash account shows an ending balance of $650. The bank statement shows a $29…
A: BANK RECONCILIATION Bank Reconciliation Statement is the Statement of Reconciliation of Cash Balance…
Q: Roy's property tax is $643.67 an
A: A late property tax refers to a situation where a property owner fails to pay their property tax by…
Q: direct labor hour at a rate of $18 per hour. Varlable overhead is budgeted at a rate of $3 per…
A: Budgeting is the best way to produce future estimation to avoid excess cost and generate better…
Q: Laurie Inc.’s static budget for 10,000 units of production includes $60,000 for direct materials,…
A: Lets understand the basics. Management prepares budget in order to estimate future profit and loss…
Q: Toby contributes $60,000 cash in exchange for stock in the corporation. Keith contributes land worth…
A: Introduction:- This is a tax-related question that involves the transfer of assets in exchange for…
Q: Operating Capital Net operating working capital Long-term assets (Net FA) Total operating capital…
A: A ratio is a mathematical expression having a meaningful interpretation arrived at by comparing two…
Q: ars. Any tax effects should be adjusted through the deferred tax liability account. ming Home…
A: JOURNAL ENTRY-IT IS A BOOK OF PRIMARY ENTRY OR A BOOK OF ORIGINAL ENTRY IN WHICH TRANSACTION ARE…
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…
A: Periodic inventory system means where day to day in or out of goods is not recorded and value of…
Q: Oriole Corporation is involved in the business of injection molding of plastics. It is considering…
A: Net Present Value - It is the difference between the present value of cash outflow and present value…
Q: Steele Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its…
A: Relevant cost primarily used in managerial accounting. The relevant cost concept useful for…
Q: d office furniture for $40,000 cash. Th furniture cost $58,000 and had accumulated depreciation…
A: Furniture cost = $58000 Accumulated depreciation = $37000 Sold price = $40,000
Q: Question 17 Start-Up Costs. DEF corporation uses a calendar year-end. DEF incurs start-up costs…
A: Tax law uses the term "organizational costs" to describe the costs incurred by a business during its…
Q: QUESTION 5 !Khaos Limited manufactures a single product. Production cost information for its first…
A: As you have asked multiple sub-parts we can solve only first three sub-parts for you please repost…
On January 1, 2020, Lovely Company paid P1,200,000 for 40,000 ordinary shares of Lonely Corporation which represent 25% investment in the net assets of Lonely. Lovely has the ability to exercise significant influence over Lonely. Lovely received a dividend of P3 per share from Lonely in 2020. The reported profit of Lonely for the year ended December 31, 2020 was P640,000. The balance of Lovely’s investment in Lonely at December 31, 2020 should be
a. 1,480,000
b. 1,360,000
c. 1,240,000
d. 1,200,000
Step by step
Solved in 3 steps
- Philip Company purchased 250,000 ordinary shares of Smiley Company for P40 per share on April 2, 2020. Smiley Company had 1,000,000 ordinary shares outstanding during 2020, paid cash dividends of P600,000 during 2020, and reported net income of P2,000,000 for 2020. What amount should Philip Company as report revenue from investment for 2020?Use the info below to answer the following questions: On January 2, 2021, Pirate, Inc. purchased a 30% interest in Tee Corp. for $3, 000, 000 cash. During 2021, Tee's net income was S3, 500, 000 and it paid dividends of S1, 000, 000. Pirate's 2021 income from Tee was: Pirate's Equity Investment balance in Tee at December 31, 2021 will be:On January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The investment is measured at fair value through other comprehensive income. Brokerage fees amounted to P120,000. A P5 dividend per share of Jasper had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. No other transactions occurred in 2020 affecting the investment in Jasper's share. What is the initial measurement of the investment?
- Jackson Inc. purchased 30,000 shares of common stock of the Pixel Corporation for $10 per share on January 2, 2020. During 2020, Pixel had 100,000 shares of common stock outstanding, reported net income of $200,000, and paid cash dividends of $100,000. The fair value of Pixel stock on December 31, 2020 is $12 per share. On December 31, 2020, what will Jackson report on its Balance Sheet for its investment in Pixel? How much revenue should Jackson report for 2020 on its investment in Pixel? Round your answers to the nearest whole number. Dot not use dollar signs($) or commas(,). Blank # 1 Blank # 2The related data of Estonia Company: On March 2, 2021, Aruba Inc. declared a cash dividend of P750,000, on which Estonia Company had an 18% ownership. The date of record is March 31, 2021, and the date of payment is April 30, 2021. On May 30, 2021, Estonia Company received a property dividend with a carrying amount of P70,000. The fair value of the property on that date is P80,000 and the fair value on June 30, 2021, which is the date of payment is P89,500. On July 15, 2021, Australia Company declared a liquidating dividend of P500,000, of which Estonia had a 15% interest. How much is the dividend income reported in the Income Statement in 2021?On January 1, 2019, Lallo Company purchased 15% of Vintar Company’s ordinary shares for P20,000,000. The following data concerning Vintar Company are available: 2019 2020 Net income P6,000,000 P7,000,000 Cash dividend paid None 15,000,000 In its income statement for the year ended December 31, 2020, how much should Lallo report as income from this investment?
- 6. On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The investment is measured at fair value through other comprehensive income. Brokerage fees amounted to P120,000 were also paid by PQR. A P5 dividend per share was declared by Frank, Inc. on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. What is the initial measurement of the investment in Frank, Inc.?On January 1, 2020, Windsor Company purchased 6,100 shares of Kusher Company stock for $439,200. Windsor's investment represents 30 percent of the total outstanding shares of Kusher. During 2020, Kusher paid total dividends of $152,000 and reported net income of $456,000. What revenue does Windsor report related to this investment and what is the amount to be reported as an investment in Kusher stock at December 31? Revenue $ Investment in Kusher stock at December 31 $On December 31, 2020, Ryan Corp, acquired a 40% Interest in Gosling Corp. for $ 315,000. During 2021, Gosling reported net income of $200,000 and paid total cash dividends of $ 50,000. Assuming Ryan uses the equity method, at December 31. 2021, the balance in the investment account should be OA) $375,000. OB) $ 395,000. OC) $255,000. OD) $295,000.
- On January 1, 2021, VDM Company paid P1,200,000 for 40,000 ordinary shares of Apple Corp., which represent a 25% investment in the net assets of Apple. VDM has the ability to exercise significant influence over Apple. VDM received a dividend of P3 per share from Apple in 2021. The reported profit of Apple for the year ended December 31, 2021 was P640,000. The balance of VDM's Investment in Apple at December 31, 2021 should be (A P1,480,000 (B P1,240,000 c) P1,360,000 D) P1,200,000On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong's shares was P6.50 per share on December 31, 2020. Which statement is correct? O Assuming that the investment is FVTPL, the total effect on Ping's profit or loss for the year ended December 31, 2020 is P2,500 O Assuming that the investment is FVTOCI, the total effect on Ping's profit or loss for the year ended December 31, 2020 is P7,500. O Assuming that the investment is an associate, the total effect on Ping's profit or loss for the year ended December 31, 2020 is P3,600. O After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches.Black Swan provided the following data for 2020: 1. On September 1, Black Swan received a P500,000 cash dividend from Dionysus Company in which Black Swan owns a 30% interest. 2. On October 1, Black Swan received a P60,000 cash dividend from Seesaw Corporation. Black Swan owns a 35% interest in Seesaw. 3. Black Swan owns a 10% interest in BST, which declared a P2.000.000 cash dividend on November 21. 2020 payable on January 23, 2021. What amount should be reported as dividend income for 2020? P700,000 P560,000 P500,000 P200,000