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Instructions At a total cost of $6,950,000, Herrera Corporation acquired 229,500 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 850,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. Required: A. Journalize the entries by Herrera Corporation on December 31 to record the following information (refer to the Chart of Accounts for exact wording of account titles): 1. Tran Corp. reports net income of $974,000 for the current period. 2. A cash dividend of $0.28 per common share is paid by Tran Corp. during the current period. B. Why is the equity method appropriate for the Tran Corp. investment?

This period, Amadeus Co. purchased its only available-forsale investment in the notes of Bach Co. for $83,000. The period-end fair value of these notes is $84,500. Amadeus records a a. Credit to Unrealized Gain—Equity for $1,500. b. Debit to Unrealized Loss—Equity for $1,500. c. Debit to Investment Revenue for $1,500. d. Credit to Fair Value Adjustment—Available-for-Sale for $3,500. e. Credit to Cash for $1,500.

At the time of acquisition X & Y Co., stock issue expected cost expenses OMR 48,000.  Finally, acquisition cost was OMR 64,000. How much will record in the income statement. Select one: a. OMR 48,000 b. OMR 64,000 c. OMR 16,000 d. OMR 112,000

At a total cost of $1,251,600, Herrera Corporation acquired 84,000 shares of Tran Corp. common stock as a long-term investment. Tran Corp. has 300,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. a.  Journalize the entries by Herrera Corporation to record the following information: If an amount box does not require an entry, leave it blank. Question Content Area 1. Tran Corp. reports net income of $2,250,000 for the current period. blank   - Select - - Select -     - Select - - Select -   Question Content Area 2. A cash dividend of $1.60 per common share is paid by Tran Corp. during the current period. blank   - Select - - Select -     - Select - - Select -   Question Content Area b. Why is the equity method appropriate for the Tran Corp. investment? An investment amount     of the outstanding common stock of the investee is presumed to represent significant influence. The equity method is…

A Ltd. Purchase building wortih $1,40,000, machinery worth $1,20,000 and stock for $40,000 from B Ltd. And took over liabilities of $35,000 for a purchase consideration of $3,30,000. A Ltd. Paid the purchase consideration by issuing 10% debentures of $100 each at a premium of 10%. Recond necessary Journal Entries.

North Ltd acquired $100,000 of shares in South Ltd for trading purposes on 1 January 20X3. Transaction costs of $2,000 were incurred. The fair value of the shares at 31 December 20X3 was $120, 500. Choose the account names and calculate the amount that correctly account for this investment on 31 December 20X3 (amount for the credit entry is not required).

North Ltd acquired $100,000 of shares in South Ltd for trading purposes on 1 January 20X3. Transaction costs of $2,000 were incurred. The fair value of the shares at 31 December 20X3 was $120,500. Choose the account names and calculate the amount that correctly account for this investment on 31 December 20X3 (amount for the credit entry is not required). ENTER YOUR ANSWER IN "Amount" WHOLE NUMBERS WITH NO COMMAS OR DOLLAR SIGNS (EG $1,000,000 SHOULD BE SHOWN AS 1000000; -$1,000,000 SHOULD BE SHOWN AS -1000000). Dr Cr Financial asset Expense Cash Ple Gain in FV-OCI Financial liability Gain in FV-P&L ◆ Amount Amount not required of the question.

Oman Oil Company purchased 1,000 shares of Petroleum Company at OMR 0.100 per share as Available for Sale investment. At the end of the year, Petroleum shares fair value is at OMR 0.200 per share. How will Oman Oil record the gain or loss? a. Cr Other Comprehensive Income OMR 100 b. Dr Other Comprehensive Income OMR 100 c. Dr Loss OMR 100 d. Cr Gain OMR 100

Problem 2. DOLE acquires an investment for P250,000. Transaction costs amount to P15,000. Journalize the initial measurement if the investment is classified as: a. Financial asset held for trading b. Held-to-maturity investments c. Available-for-sale assets

Accounting for Asset and Stock Purchases Assume an investor purchases an investee's net assets with a cash payment of $800 and issuance to the investee's shareholders of 160 shares of $1 par value common stock with a current fair value of $19.00 per share. In addition, we assume the purchaser paid an additional $40 of transaction costs to a third party (e.g., appraiser or broker) and provided the seller with contingent consideration with a fair value of $160 at the date of acquisition. The investee has the following net assets at current appraised fair value and historical book value: Plant and equipment Land Patent Total Required Investee Fair Value Investee Book Value $320 $600 840 600 960 80 $2,400 $1,000 a. Provide the journal entry on the investor's books for the purchase of the individual net assets of the investee. Assume the acquired net assets do not qualify as a business. b. Provide the journal entry on the investor's books for the purchase of the individual net assets of the…

14 - Our company has purchased a land for 472.000 TL including 18% VAT. Which of the following accounts is correct to use in the relevant accounting record ?    a) 252 Buildings Hs. 72.000 TL (Borrower)  B) 250 Land and Lands Hs. 400.000 TL (Creditor)  NS) 250 Land and Lands Hs. 400.000 TL (Borrower)  D) 391 Calculated VAT Hs. 72.000 TL (Borrower)  TO) 191 VAT Deductible 72.000 TL (Creditor)

Acquiring net assets that constitute a business Assume on January 1, 2022 an investor company paid $1,188 to an investee company in exchange for the following assets and liabilities transferred from the investee company: Asset (Liability) Estimated Fair Value Production equipment $420 480 Factory Licenses 300 In addition, the investor provided to the seller contingent consideration with a fair value of $120 and the investor paid an additional $48 of transaction costs to an unaffiliated third party. The contingent consideration is not a derivative financial instrument. The fair values are measured in accordance with FASB ASC 820: Fair Value Measurement. Assume the net assets transferred from the investee qualify as a "business," as that term is defined in FASB ASC Master Glossary. At what amount will Goodwill be reported in the financial statements of the acquiring company on January 1, 2022? Select one: a. $12 b. $108 c. $36 d. SO

29. the assets and liabilities of R were stated at their fair values when A acquired it's 80% interest and the fair value method was used to initially measure the NCI. A uses the cost method to account for its investment in R. Net income and dividends for 2021 for the affiliated companies were: A Corp.                 R Corp. Net Income                                                        P105,000                              P31,500 Dividends paid                                                   63,000                                   17,500 Dividends Payable, 1/1                                   20,000                                   9,250 Dividends Payable 12/31                               31,500                                   8,750   Retained Earnings of A Corp. in the separate FS at the beginning of the year is P420,000. End of the year evaluation indicates P3,000 impairment in goodwill. The consolidated retained earnings at December 31, 2021 is:

on January 1, 20x1 entitiy A acquires 30% interest in Entity B for 600,000. Entity B reports profit of 200,000 and declares dividends of 50,000 in 20x1. How much is the carrying amount of the investment in associate on Dec31, 20x1

Illu.1 : A Ltd. acquired B Ltd. Business with the following values. Rs. Fixed Asets 3,00,000 1,00,000 50,000 Current assets Debentures Current Liabilities 1,00,000 Calculate purchase consideration. CS Scanned with CamScanner

Please answer the exercise step by step and clear. Thank you.   Sony Corporation paid $350,000 cash for 42% of the voting common stock of Micro Inc. on January 1, 2021. Book value and fair value information for Inc. in this date is as follows:   Assets Cash Accounts receivable Inventories Equipment Book Values $60,000 120,000 80,000 340,000 $ 600,000 Fair Values $60,00   Instructions:   1. Prepare the journal entries for purchased investment.   2. Prepare the analysis of the cost versus the book value of the net assets of the investment bought in Micro Inc by Sony Corporation.   3. Prepare the schedule with the differences between the book value and the fair value of the identifiable net assets of Micro Inc.   4. At the end of the year, Micro Inc was:   a. Net Income for $300,000   b. Paid dividends at Dec 31, 2021 for $35,000   Prepare the journal entries related with net income and dividends received Sony Corporation for Micro Inc.

2. Parent Company buys Sub Company. Sub Company has the following book and fair market values for their accounts as of the purchase. Balance Sheet of Sub Company Book Values Fair Values Assets Current assets $150 $150 Property, plant, and equipment (net) Copyright (net) 200 300 50 600 Sales contracts 350 Total Assets $400 $1,400 Liabilities Accounts payable $100 $100 Stockholders' Equity Common stock-$5 par value Additional paid-in capital Retained earnings Total Liabilities and Stockholders' Equity 50 50 200 $400 (1) Parent Company pays $400 cash and 50 shares of $10 par common stock, selling for $20 per share as of the business combination. Prepares a journal entry for this takeover for Parent Company. Sub Company dissolves after this event.

Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Sherman shares were selling for £34.50 per share. How much total revenues (all revenues) should be recognized from this investment during the year? Select one: Oa. $1900 Ob. $700 OC $1300 Od. $600

X Ltd. purchased assets of Y ltd. as under.Plant and Machinery Rs. 8,00,000Land and Building Rs. 72,00,000 The purchase consideration was Rs. 80,00,000. Rs 20,00,000 were paid though cheque and the remaining amount by issue of 6% debentures of Rs. 100 each at a premium of 20%.Pass the necessary Journal entries in the books of X ltd.

Jameson Company acquired 90% interest in Southwest Company on December 31, 20x4 for P320,000. During 20x5 Southwest had a net income of P22,000 and paid a cash dividend of P7,000.  the cost method is applied that means it would give a debit balance in the Investment in Southwest Company account at the end of 20x5 of:

Question:The following is the extract from trial balance of G Limited, subsidiary of Y Limited for the year ended 31 December 2021.                                                                        Dr                              CrInventory on hand: 31/12/2020               50 000     Sales                                                                                            1025000Purchases                                                  350 000     Depreciation                                             25 000     Rent income                                                                                 40 000Dividend paid                                           11 000     Other expenses                                        300 000     Income tax expense                                 145 000      Additional information: 1. Y Limited acquired its interest in G limited on the 1 st May 2021. 2.The average monthly sales of G Limited accrued evenly throughout the year.…

Company A acquired 37% investment in Company B for R196 000. During the first year after acquieition Company B made net income of R400 000. Using the equity accounting method, what will happen to Company A's investment in Company B? Select one: O a. It remains the same O b. It increases by R148 000 O c Ilt decreases by R196 000 O d. It decreases by R148 000

At a total cost of $6,700,000, Herrera Corporation acquired 238,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 700,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation.Required:A. Journalize the entries by Herrera Corporation on December 31 to record the following information (refer to the Chart of Accounts for exact wording of account titles):1. Tran Corp. reports net income of $967,000 for the current period.2. A cash dividend of $0.29 per common share is paid by Tran Corp. during the current period.B. Why is the equity method appropriate for the Tran Corp. investment?

On-Ju Company acquired 90% interest in Southwest Company on December 31, 20x4 for P320,000. During 20x5 Southwest had a net income of P22,000 and paid a cash dividend of P7,000. Applying the cost method would give a debit balance in the Investment in Southwest Company account at the end of 20x5 of: P335,000 P333,500 P313,700 P320,000

At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 800,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. Required: A. Journalize the entries by Herrera Corporation on December 31 to record the following information (refer to the Chart of Accounts for exact wording of account titles): 1. Tran Corp. reports net income of $600,000 for the current period. 2. A cash dividend of $0.50 per common share is paid by Tran Corp. during the current period. B. Why is the equity method appropriate for the Tran Corp. investment?

Concord Corporation purchased for $285,000 a 25% interest in Murphy, Inc. This investment enables Concord to exert significant influence over Murphy. During the year, Murphy earned net income of $185,000 and paid dividends of $54,000.Prepare Concord’s journal entries related to this investment. (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.) Account Titles and Explanation Debit Credit enter an account title to record the purchase enter a debit amount enter a credit amount enter an account title to record the purchase enter a debit amount enter a credit amount (To record the purchase.)     enter an account title to record the net income enter a debit amount enter a credit amount enter an account title to record the net income enter a debit amount enter a credit amount (To record the net income.)…

Problem 6-22 (Algo) (LO 6-2) On December 31, 2023, Petra Company invests $45,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery. Previously, Petra had no equity interest in Valery. Immediately after Petra's investment, Valery presents the following balance sheet: Cash Marketing software Computer equipment Total assets $ 45,000 165,000 65,000 $ 275,000 Long-term debt Noncontrolling interest Petra equity interest Total liabilities and equity $ 95,000 135,000 45,000 $ 275,000 Each of the amounts represents an assessed fair value at December 31, 2023, except for the marketing software. The December 31 business fair value of Valery is assessed at $180,000. Required: a. If the carrying amount of the marketing software was undervalued by $50,000, what amounts for Valery would appear in Petra's December 31, 2023, consolidated financial statements? b. If the carrying amount of the marketing…