Johnny, Inc. had dividend income in 2021 of $1,000,000, comprised of dividends from the following companies: Neon Corp 600,000 Booker, Inc. 300,000 Portfolio Companies 100,000
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Johnny, Inc. had dividend income in 2021 of $1,000,000, comprised of dividends from the following companies:
Neon Corp 600,000
Booker, Inc. 300,000
Portfolio Companies 100,000
Johnny owns 85% of the outstanding stock of Neon, 25% of the stock of Booker and less than 5% of a variety of companies that it holds in its portfolio. What is Johnny's dividends received deduction?
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- Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________Judd, Inc. owns 35% of Crosby Corporation. During the calendar year 2025, Crosby had net earnings of $300,000 and paid dividends of $30,000. Judd mistakenly recorded these transactions using the fair value method rather than the equity method of accounting. What effect would this have on the investment account, net income, and retained earnings, respectively? O Understate, overstate, overstate O Overstate, understate, understate O Overstate, overstate, overstate O Understate, understate, understateWendy Day Kite Company owns 40% of the outstanding stock of Strong String Company. During the current year, Strong String reported net income of $20 million. What effect does Strong String's reported net income have on Wendy Day's financial statements? Explain the reasoning for this effect.
- For 2018, Sabil Corporation earned net income of $480,000 and paid dividends of $18,000. At January 1, 2018, Sabil had $200,000 of $10 par value common stock outstanding and $1,500,000 of retained earnings.On January 1, 2018, Phyit Corporation bought outstanding common stock of Sabil paying $200,000. All payments made by Phyit in excess of book value were attributable to equipment, which is depreciated over ten years on a straight-line basis. Prepare Phyit’s general journal entry for the acquisition of common stock of Sabil, the recognition of dividend income, and/or net income participation in Sabil under the following assumptions:1. Phyit purchased 10% of outstanding common stock.2. Phyit purchased 20% of outstanding common stock.Turner Company owns 40% of the outstanding stock of ICA Company. During the current year, ICA paid a $5million cash dividend on its common shares. What effect did this dividend have on Turner’s 2018 financial statements? Explain the reasoning for this effect.walker, inc. owns 25% of runner corporation. During 2021, walker, inc. has 580,000 of gross income operations and 310,000 of expenses from operations. walker, inc also received a 110,000 dividend from runner corporation A. walker inc dividend received deduction is? B walker inc tax liability for the year is?
- In 2023, Avalanche Corporation has $70,000 of net income from operations during the current year. In addition, Avalanche received $180,000 of dividend income from a corporation in which Avalanche has a 35% ownership interest. What is Avalanche's dividends received deduction for 2023?Superior Company owns 40% of the outstanding stock of Bernard Company. During 2018, Bernard paid a$100,000 cash dividend on its common shares. What effect did this dividend have on Superior’s 2018 financialstatements?The Brush Cherry Corporation has a $75,000 loss from operations (excluding dividends received) for 2019, and dividends of $150,000 received from 30 percent-owned domestic corporations. How much is the Brush Cherry Corporation's dividends received deduction for 2019? a.$45,000 b.$97,500 c.$120,000 d.$75,000 e.None of the amounts listed are correct.
- During 2021 Blossom Company purchased 8700 shares of Nash Inc. for $17 per share. During the year Blossom Company sold 1850 shares of Nash, Inc. for $22 per share. At December 31, 2021 the market price of Nash, Inc.’s stock was $15 per share. What is the total amount of gain/(loss) that Blossom Company will report in its income statement for the year ended December 31, 2021 related to its investment in Nash, Inc. stock? $-8150 $-17400 $-4450 $9250On January 1, 2021, MNO Company acquired 12,500 of the outstanding common shares of Esther Corporation stocks at P40 per share. Esther Corp. had a total of 62,500 shares outstanding on the same date. Esther Corp. declared total dividends of P20,000 to shareholders on December 20, 2021 and reported a net income of P150,000 for 2021. What is the amount of dividend income to be presented in profit or loss for the year ended December 31, 2021? 5.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