Eagle Exporters purchased 80,000 of the 200,000 outstanding shares of Giant Distributors for $3,000,000. Eagle has significant influence over Giant and will account for this investment using the equity method. During the year, Giant declared dividends of $100,000 and reported Net Income of $780,000. What is the balance in the Investment in Giant account at year end? Group of answer choices $2,648,000 $3,272,000 $2,728,000 $3,352,000
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- Madison Corporation purchases an investment in Lake Geneva, Inc. at a purchase price of $20 million cash, representing 40% of the book value of Lake Geneva, Inc. During the year, Lake Geneva reports net income of $3,400,000 and pays $838,000 of cash dividends. At the end of the year, the market value of Madison’s investment is $24 million. What is the year-end balance of the equity investment in Lake Geneva? Select one: a. $21,024,800 b. $24,000,000 c. $20,000,000 d. $22,562,000 e. $21,360,000Fairbanks 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. $600On January 1, Vienna Corporation purchased 40% of the outstanding common stock of the Marietta Corporation for $137,500. During the year, Marietta Corporation reported net income of $50,000 and paid cash dividends of $25,000.The balance of the Investment in the Marietta Corporation account on the books of Vienna Corporation at year-end is: Select one: A. $147,500 B. $135,000 C. $100,000 D. $110,000
- On December 30, Year 3, Varsity Corporation sold its investment in marketable equity securities costing $800,000 for $860,000 cash. The securities were purchased on January 2, Year 1, and the market value of the securities was $820,000 and $780,000 on December 31, Year 1 and Year 2, respectively. How much gain or loss will Varsity report in its income statement for the year ending December 31, Year 3? Multiple Choice A $40,000 gain. An $80,000 gain. A $20,000 loss. A $60,000 gain..Pronghorn Co. invested $1,070,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividene each year. Use the information in the following T-account for the investment in Stellar to answer the following questions. Investment in Stellar Co. 1,070,000 99,000 (a) How much was Pronghorn Co.'s share of Stellar Co's net income for the year? Net income 29,700 Total net income (b) What was Stellar Co's total net income for the year? 428000 Total Dividends. $ 396000 (c) What was Stellar Co's total dividends for the year? 128400How to record the following transactions? 13. (!)Company repurchased from the market 20 of own shares at nominal value of 10 and purchase price of 4. All share were paid for in full cash. 14. Last year company issue 100 shares at a nominal price of $6 / share and issue price $7 / share with an emission expense $150. 15. The company received a return of the goods from client – value of goods 2 000. 16. Last year the company set up a warranty provision of 20 000. One of the clients asked for a repair of the products purchased which cost 2 800. Company used the warranty provision to settle the cost. 17.The company Alfa incurred R&D. Company stated that the research costs are equal 2 000 and second stage (development cost) of the project is not finished but usefulness of it is almost 3 000.18.Company obtained a grant from a government of 2 000 to conduct R&D activities over the next year.The company Alfa incurred R&D. Company stated that the second stage of the project…
- The beginning balance sheet of Stamp Source Co. included a $700,000 investment in Eaten stock (20% ownership, Stamp has significant influence over Eaten). During the year, Stamp Source completed the following investment transactions: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions for the year of Stamp Source. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Mar. 3: Purchased 6,000 shares at $12 per share of Jack Software common stock as a long-term equity investment, representing 1% ownership Date Accounts and Explanation Credit Mar. 3 Requirements 1. Journalize the transactions for the year of Stamp Source. 2. Post transactions to T-accounts to determine the December 31, 2024, balances related to the investment and…Use the commission schedule from Company A shown in the table to find the annual rate of interest earned on the investment. (Note: commissions are rounded to the nearest cent.) Principal (Value of Stock) Commission Under $3,000 $25+1.8% of principal $3,000 to $10,000 $37+1.4% of principal Over $10,000 $107+0.7% of principal An investor purchases 396 shares at $12.01 a share, holds the stock for 45 weeks, and then sells the stock for $16.63 a share. The annual rate is My wrong answer >>>>37.55%. (Round to five decimal places.)The Tornado Truck Body Company decides to repurchase 10,000 shares of its common stock on January 20. The stock has $1 par value, and the market value per share of common stock on January 20 is $8.75. The company decides to sell 5,000 of the treasury stock shares on April 30 for $9.00 per share. What is the amount of the gain recognized as a result of the transaction? Group of answer choices A)$40,000 b)$0 c)$45,000 d)$1,250 e)None of the above
- Cosmos Corporation had the following long-term investment transactions. Year 1 January 2 Purchased 5,000 shares of Visual, Inc. for $42 per share. October 15 Received Visual, Inc. cash dividend of $2 per share. December 31 Visual reported a net loss of $66,000 for the year. Year 2 February 2 Sold 5% of the shares of Visual Inc for $7000. Prepare the journal entries Cosmos Corporation should record for these transactions and events.Kramer Corporation had the following long-term Investment transactions. Prepare the journal entries Kramer Corporation should record for these transactions and events. Jan 2 Purchased 5,000 shares of Optic, Inc. for $42 per share plus $7,000 in fees and commission. These shares represent a 35% ownership of Optic. Oct 15 Received Optic, Inc. cash dividend of $2 per share. Dec 31 Optic reported a net income of $66,000 for the year.Required information [The following information applies to the questions displayed below.] Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $35 million gaming center. a. Issue $35 million, 7% note. b. Issue 1 million shares of common stock for $35 per share. Required: 1. Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answers in dollars, not millions. (.e., $5.5 million should be entered as 5,500,000). Round your "Earnings per Share" to 2 decimal places.) Operating income Interest expense (note only) Income before tax Income tax expense (35%) Net income Number of shares Earnings per share (Net income /# of shares) $ Issue Stock 11,000,000 $ 11,000,000 Issue Note 4,000,000 5,000,000