Daron Co. purchased 20.000 shares of Herkul Co on 2 April 2018. Share price of Herkul Co. was 6 $. Daron company also paid a total commission of 500 $. On 1 June Daron company received a total dividend of 2.000 $ from Herkul Co. The share price of Herkul Co. on 312.2018 was 7 $. Daron company classified this investment as Fair Value Through Profit or Loss (FVTPL) Investments. Make the necessary journal entries
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- During the year 2018 Nestle sold 3,000 shares of LJ, Inc. for P119,700 and 500 shares of Dwarfy company at a loss of P8,100. On December 31, 2018, Nestle's equity investment portfolio consisted of the following. Cost P24,000 216,000 P240,000 Quantity Fair Value P18,000 246,000 P264,000 Investment Dwarfy Company Alabang Corp. Totals 500 shares 2,000 shares What should be reported as loss on sale of trading securities in 2018? a.60,300 b. 32,400 c. 24,300 d. 68,400 What amount of unrealized gain or loss should be reported in the income statement for the year ended December 31, 2018? e. P180,000 unrealized gain f. P180,000 unrealized loss g. P24,000 unrealized gain h. P24,000 unrealized loss In the December 31, 2018, statement of financial position, what should be reported as carrying amount of trading securities? a. 240,000 b. 234,000 c. 264,000 d. 270,000On April 1 2018, Honda Co., purchased 75% of outstanding common stock of GMC Co., @ OMR 250,000 cash. The Co., common stock OMR 40,000 @12 per share. The fair value of common stock 15 per share. Calculate the investment in GMC Company. Select one: a. OMR 3,750,000 b. OMR 250,000 c. OMR 480,000 d. OMR 600,000The 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?
- Andrew Company purchased 800 ordinary shares of Valley Industries as a trading investment for P148,800. During the year, Valley Industries paid a cash dividend of P32 per share. At year-end, Valley’s shares were selling for P174 per share. In the income statement for the current year-end, what net amount of unrealized gain/loss and dividend revenue should be reported by Andrew Company?On January 1, 2020, MNO Company acquired 250,000 ordinary shares of PQR Company at P45 per share.At the time of purchase, PQR Company had outstanding1,000,000 shares with a carrying amount of P30,000,000. The following information pertains to year 2020: Net income of CD Company 3,100,500 MNO Company received cash dividend from PQRCompany 2.50 per ordinary share Market Value of PQR Company's shares 35 MNO Company has no significant influence and has elected irrevocably to measure the investment at fair value through other comprehensive income.How much is the unrealized gain/(loss) on financial asset-OCI at year-end?On 1 July 2015, Ausra purchased 75% of Danute by way of a share exchange oftwo new shares in Ausra for every three purchasedin Danute . Ausra's share price at the acquisition date was $4.70.] + Statement of Comprehensive Income for the year ended 31 December 2015 Ausra$ 000 120,000 Danute$ 000 Revernie 48,000 Cost of sales (84,000) (40,000) Gross profit Operating expenses Profit from operations 36,000 8,000 (11,900) (400) 7,600 24,100 Other income 300 Finance costs (1,200) Profit before tax 24,400 6,400 Income tax expense (6,000) 18,400 (1,200) 5,200 Profit for the year The following information is relevant 1JThe fair value of Danute's net assets differed from its carrying values at 1 July 2015. Plant was $8 million m excess of its net book value. Plant had 4 years remaiming at the date of acquisition. The group depreciation policy is to charge depreciation on a proportionate basis and should be included in cost of sales. No adjustment was made for this in Danute s fmancial statements.…
- Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016. The quoted market price of SBMA and HIMYM shares are P36 and P40, respectively. SBMA Inc. HIMYM Inc. Book Value Fair Value Book Value Fair Value Current assets 8,000,000 9,000,000 24,000,000 24,000,000 Plant assets 22,000,000 26,000,000 26,000,000 25,000,000 Totals 30,000,000 35,000,000 50,000,000 49,000,000 Liabilities 5,000,000 5,000,000 15,000,000 15,000,000 Common Stocks, P10 10,000,000 20,000,000 APIC 1,000,000 3,000,000 Retained Earnings 14,000,000 12,000,000 Totals 30,000,000 50,000,000 HIMYM Inc. acquires all the net assets of SBMA by issuing 1,000,000 of its own shares. PCIB Company incurred the following out of pocket costs relating to the acquisition: Legal fees to arrange the business combination 25,000 Cost of shares SEC registration…Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016. The quoted market price of SBMA and HIMYM shares are P36 and P40, respectively. SBMA Inc. HIMYM Inc. Book Value Fair Value Book Value Fair Value Current assets 8,000,000 9,000,000 24,000,000 24,000,000 Plant assets 22,000,000 26,000,000 26,000,000 25,000,000 Totals 30,000,000 35,000,000 50,000,000 49,000,000 Liabilities 5,000,000 5,000,000 15,000,000 15,000,000 Common Stocks, P10 10,000,000 20,000,000 APIC 1,000,000 3,000,000 Retained Earnings 14,000,000 12,000,000 Totals 30,000,000 50,000,000 HIMYM Inc. acquires all the net assets of SBMA by issuing 1,000,000 of its own shares. PCIB Company incurred the following out of pocket costs relating to the acquisition: Legal fees to arrange the business combination 25,000 Cost of shares SEC registration 142,000 Cost of printing and issuing new stock certificates 3,000 Indirect cost of combination 20,000 Finder’s fees 35,000 The total retained earnings of the…Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016. The quoted market price of SBMA and HIMYM shares are P36 and P40, respectively. SBMA Inc. HIMYM Inc. Book Value Fair Value Book Value Fair Value Current assets 8,000,000 9,000,000 24,000,000 24,000,000 Plant assets 22,000,000 26,000,000 26,000,000 25,000,000 Totals 30,000,000 35,000,000 50,000,000 49,000,000 Liabilities 5,000,000 5,000,000 15,000,000 15,000,000 Common Stocks, P10 10,000,000 20,000,000 APIC 1,000,000 3,000,000 Retained Earnings 14,000,000 12,000,000 Totals 30,000,000 50,000,000 HIMYM Inc. acquires all the net assets of SBMA by issuing 1,000,000…
- Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016. The quoted market price of SBMA and HIMYM shares are P36 and P40, respectively. SBMA Inc. HIMYM Inc. Book Value Fair Value Book Value Fair Value Current assets 8,000,000 9,000,000 24,000,000 24,000,000 Plant assets 22,000,000 26,000,000 26,000,000 25,000,000 Totals 30,000,000 35,000,000 50,000,000 49,000,000 Liabilities 5,000,000 5,000,000 15,000,000 15,000,000 Common Stocks, P10 10,000,000 20,000,000 APIC 1,000,000 3,000,000 Retained Earnings 14,000,000 12,000,000 Totals 30,000,000 50,000,000 HIMYM Inc. acquires all the net assets of SBMA by issuing 1,000,000 of…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…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