Fill in the blanks: On January 1, 2020 Iskrambol Company purchased 20% of Ice Buko Company's ordinary shares for P3,000,000.00. During 2020, Ice Buko reported a net income of P3,500,000.00 and paid a cash dividends of P2,000,000.00 on its ordinary shares. Compute a Investment Income for 2020 The balance of "Investment in associate" as of 12.31.2020 ( Previous
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- 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? O P2,250.000 O P600.000 O P700.000 O P1.950.000The 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?Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,000 $8.00 $7.10 FDY Ltd. 3,000 6.90 6.95 CTN Corporation 4,600 5.00 5.80 On January 15, 2021, Ivanhoe sold the shares in CTN Corporation for $6.25 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…
- Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive income4. 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? Group of answer choices P1,950,000 P600,000 P700,000 P2,250,000Question: The total amount reported in 2019 profit or loss is? On January 1, 2019, an entity purchased 15,000 shares of another entity representing a 12% interest for P2,500,000. The entity elected to measure the investment at FVOCI. The investee reported net income of P3,000,000 and paid dividends of P15 per share in 2019. The fair value of the investment was P2.800.000 on December 31, 2019. On January 1, 2020, the entity paid P3,000,000 for 16.250 additional shares of the investee. The fair value of the 12% interest did not change on this date. The fair values of the identifiable net assets of the investee equal carrying amount of P15,000,000 on such date except for land whose fair value exceeded carrying amount by P3,000,000. For the year ended December 31, 2020, the investee reported net income of P6,000,000 and paid dividends of P20 per share.
- 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.Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer company reports $1,200,000 earnings for the year in its net income and pays $550,000 in cash dividends at the end of the year 2020. 1. Using the cost method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above. 2. Using the equity method, what is the investment income and the balance sheet investment account balance respectively for AXE company? * A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above.On January 1, 2019, X Company purchased a 30% interest in Y Company for $250,000. Y reported net income of $100,000 for 2019 and declared and paid a dividend of $10,000. X using the Cost method. In its December 31, 2019, balance sheet what amount should X report as its investment in Y? Select one: a. 277,000 b. 340,000 c. 250,000 d. 223,000
- Henesto Company's investment account has the following transaction during the year: Jan. 10, 2020 Acquired the following investments at a lump sum price ofP1,000.000: ABC Company - 1,000 shares (par value, P80; market price is P100 per share) DEF Corporation - 5,000 shares (par value, P100; market price is P105 per share) GHI Company - 5,000 shares (par value, P70; the market price is P75 per share) Henesto Company paid 1% of the price as the broker's fee. Henesto Company classified all the above securities as trading securities. Dec. 31, 2020 The following are the fair values of the investment at year-end: ABC Company - P105 per share DEF Corporation- P99 per share GHI Company - P78 per share June 1, 2021 Henesto Company sold 500 shares of ABC Company at P115 per share. Sept. 1, 2021 The company purchased 2,000 shares of JKL Company for P300,000. The par value of the JKL share is P160. The company paid 1% of its price as a broker's fee. The company classified this investment at…The Ludel Company acquired the net assets of the Girl Conrad Company on January 1, 2018, and made the following entry to record the purchases:Current assets P100,000Equipment 150,000Land 50,000Buildings 300,000Goodwill 100,000Liabilities 80,000Common stock, P1 par 100,000Paid-in capital in excess of par 520,0001. Assuming that additional shares on January 1, 2020 would be issued on that date to compensate for any fall in the value of Ludel common stock below P16 per share. The settlement would be to cure the deficiency by issuing added shares based on their fair value on January 1, 2020. The fair price of the shares on January 1, 2020 was P10.What is the additional number of shares issued on January 1, 2020 to compensate for any fall in the value of the stock? a. 60,000b. 100,000c. 10,000d. 160,000 2. The Jonnie Company owns 75% of the Junior Company. On December 31, 2020, the last day of the accounting period, Junior sold to Jonnie a non-current asset for P200,000. The asset…On January 1, 2025, Pina Company paid $765000 for 102000 shares of Blossom Company's common stock, which represents 25% of Blossom Company's outstanding common stock, Blossom Company reported income of $306000 and paid cash dividends of $81600 during 2025 Pina Company should report the investment in Blossom Company on its December 31, 2025, balance sheet at O $821100. $785400. $765000 O$841500