15. Fu Jewelers purchased 4,000,000 of the outstanding 12,000,000 shares of Harris & Associates. At the time of the acquisition, the book value of Harris's net assets equal their fair market value. Harris declared dividends of $300,000 during the year. How will Fu record this transaction?
a. Fu will increase the investment account by $100,000. b. Fu
will increase Dividend Revenue by $100,000. c. Fu will increase
Dividend Revenue by $300,000. d. Fu will decrease the investment
account by $100,000.
Homework Answers
Solution 15:
% of holding of FU Jewellers in Harris & Associates = 4000000 / 12000000 = 33.33%
Therefore FU is having significant influence in Harris & Associates.
Share of dividend received by FU = $300,000 * 33.33333% = $100,000
Fu will decrease the investment account by $100,000 for receipt of dividend.
Hence option d is correct.
Solution 16:
| Computation of % of completion, revenue recognition and Gross Profit | ||||||||
| Year | Actual cost incurred (A) | Total cost incurred till date (B) | Total estimated Cost ( C ) | % of completion (D) (B/C) |
Contract Price (E) |
Total Revenue to be recoganized (F) (E * D) | Revenue for current period (G) | Gross Profit (H) |
| 2018 | $180,000 | $180,000 | $375,000 | 48.00% | $450,000 | $216,000 | $216,000 | $36,000 |
| 2019 | $200,000 | $380,000 | $380,000 | 100.00% | $450,000 | $450,000 | $234,000 | $34,000 |
Hence option c is correct.
Add Answer to:
15. Fu Jewelers purchased 4,000,000 of the outstanding
12,000,000 shares of Harris & Associates. At the...
Sheehan & Co purchased 35% of the outstanding shares of Jules & Associates. Jules then declared...
Sheehan & Co purchased 35% of the outstanding shares of Jules & Associates. Jules then declared dividends at year end How will these dividends effect the investment account for Shecha O A Dividends received will increase the investment account OB. Dividends received will have no impact on the investment account will increase Realted Gain - Net Income O C. Dividends received will have no impact on the investment account, it will increase Cash and Dividend Revenue OD. Dividends received will...
How do you fill out the income statement with the information above? Dawson, Inc. Trial Balances...
How do you fill out the income statement with the information
above?
Dawson, Inc. Trial Balances Dec 31, 2018 & 2017 Account # Account Description 1000 Cash 1050 Investments - Trading Prior Year Ending - FINAL 31-Dec-2017 Debit Credit 5,785,000 500,000 Current Year Ending - FINAL 31-Dec-2018 Credit 5,210,000 500,000 $ 15,000 3,800,000 5,000 4,900,000 140,000 220,000 1051 1100 1150 1200 1310 1320 1700 3,350,000 40,000 270,000 300,000 118,000 300,000 4,665,000 45,000 80,000 370,000 340,000 130,000 300,000 1720 1730 1810...
Use the following information to answer questions 1 and 2. Riley's Corporation was organized on January...
Use the following information to answer questions 1 and 2. Riley's Corporation was organized on January 1, 2019. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 2019, Riley had the following transactions relating to stockholders’ equity: Issued 10,000 shares of common stock at $7 per share Issued 20,000 shares of common stock at $8 per share Reported a net income of $100,000 Declared and paid dividends of $50,000 Purchased 3,000 shares of treasury...
Please I need Help with: BM155 Project 5 Managing and Interpreting Key Financial Information & Statements Project De...
Please I need Help with: BM155 Project 5 Managing and Interpreting Key Financial Information & Statements Project Description: T & T, Inc. is an up-and-upcoming small business that makes widgets. As a founding partner in this small business, you are responsible for managing the company’s financials. To help you complete this responsibility, use the information you learned in Chapter 10 and 11 on understanding a company’s finances. Using the Project 5 Supplement Data Sheet, compose the Income Statement for the...
SAT 1.1 SAT 1.2 SAT 1.3 SAT 1.4 SAT 1.5 SAT 1.6 SAT 1.7 SAT 1.8...
SAT 1.1
SAT 1.2
SAT 1.3
SAT 1.4
SAT 1.5
SAT
1.6
SAT 1.7
SAT 1.8
SAT 1.9
SAT 1.10
I need complete answer
RBB RETAILING CORPORATION Statement of Comprehensive Income For the year ended December 31, 2020 Net sales Less: Cost of sales 3,380,000 2,566,000 Gross profit 814,000 Less: Operating expenses Selling expenses General and administrative expenses Income before income tax 260,500 352,200 612.700 201,300 Less: Income tax expense 60,390 Net profit 140,910 Included under General and Administrative Expenses...
[The following information applies to the questions displayed below.] XYZ is a calendar-year corporation that began...
[The following information applies to the questions displayed below.] XYZ is a calendar-year corporation that began business on January 1, 2018. For the year, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Use Exhibit 16-6. XYZ corp. Book Income Income statement For current year Revenue from sales $ 40,000,000 Cost of Goods Sold (27,000,000 ) Gross profit $ 13,000,000 Other income: Income from investment in corporate stock 300,000 1...
Heavy Equipment and Machinery Inc. Trial Balance At December 31, 2019
What is the answer to these tables? here is all the information that had been given to me and my answers to the question that I think needs to be answered to complete the two tablesYou have been hired as a Financial Consultant by Heavy Equipment and Machinery Inc. (HEMI). HEMI is a private corporation that has finished its first year of operations. HEMI's owners plan to list the business on the Toronto Stock Exchange (TSE) in the next 5 years; accordingly,...
[The following information applies to the questions displayed below.] XYZ is a calendar-year corporation that began...
[The following information applies to the questions displayed below.] XYZ is a calendar-year corporation that began business on January 1, 2017. For 2018, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Exhibit 16-6. XYZ corp. Book Income Income statement For current year Revenue from sales $ 40,000,000 Cost of Goods Sold (27,000,000 ) Gross profit $ 13,000,000 Other income: Income from investment in corporate stock 300,000 1 Interest income...
XYZ is a calendar-year corporation that began business on January 1, 2017. For 2018, it reported...
XYZ is a calendar-year corporation that began business on January 1, 2017. For 2018, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Exhibit 16-6. XYZ corp. Book Income Income statement For current year Revenue from sales $ 40,000,000 Cost of Goods Sold (27,000,000 ) Gross profit $ 13,000,000 Other income: Income from investment in corporate stock 300,000 1 Interest income 20,000 2 Capital gains (losses) (4,000 ) Gain or...
5248,000 225,000 756,400 754.358 Cash Marketable Equity Securities (Note 1) Accounts Receivable-Net (Note 2) Inventories (Note 3) Total Current Assets 374,000 954,950 102,000 Investment in Nowe...
5248,000 225,000 756,400 754.358 Cash Marketable Equity Securities (Note 1) Accounts Receivable-Net (Note 2) Inventories (Note 3) Total Current Assets 374,000 954,950 102,000 Investment in Nowell Co.(15-percent owned) Investment in Knight Co.(25-percent owned) Total Investments 377.000 110,000 743,000 110,000 743,000 1,961,852 267.600) 1,151,692 Total Plant Assets at Cost Plant Assets-Net Total Assets IABILITIES AND SHAREHOLDERS' EQUITY $140,000 535,157 118,000 $100,000 493.296 75,000 40,000 Notes Payable Accounts Payable Rental Fees Received in Advance Income Taxes Payable Total Current Liabilities 1,172,924 1.166,635...
Sheehan & Co purchased 35% of the outstanding shares of Jules & Associates. Jules then declared dividends at year end How will these dividends effect the investment account for Shecha O A Dividends received will increase the investment account OB. Dividends received will have no impact on the investment account will increase Realted Gain - Net Income O C. Dividends received will have no impact on the investment account, it will increase Cash and Dividend Revenue OD. Dividends received will...
How do you fill out the income statement with the information
above?
Dawson, Inc. Trial Balances Dec 31, 2018 & 2017 Account # Account Description 1000 Cash 1050 Investments - Trading Prior Year Ending - FINAL 31-Dec-2017 Debit Credit 5,785,000 500,000 Current Year Ending - FINAL 31-Dec-2018 Credit 5,210,000 500,000 $ 15,000 3,800,000 5,000 4,900,000 140,000 220,000 1051 1100 1150 1200 1310 1320 1700 3,350,000 40,000 270,000 300,000 118,000 300,000 4,665,000 45,000 80,000 370,000 340,000 130,000 300,000 1720 1730 1810...
SAT 1.1
SAT 1.2
SAT 1.3
SAT 1.4
SAT 1.5
SAT
1.6
SAT 1.7
SAT 1.8
SAT 1.9
SAT 1.10
I need complete answer
RBB RETAILING CORPORATION Statement of Comprehensive Income For the year ended December 31, 2020 Net sales Less: Cost of sales 3,380,000 2,566,000 Gross profit 814,000 Less: Operating expenses Selling expenses General and administrative expenses Income before income tax 260,500 352,200 612.700 201,300 Less: Income tax expense 60,390 Net profit 140,910 Included under General and Administrative Expenses...
What is the answer to these tables? here is all the information that had been given to me and my answers to the question that I think needs to be answered to complete the two tablesYou have been hired as a Financial Consultant by Heavy Equipment and Machinery Inc. (HEMI). HEMI is a private corporation that has finished its first year of operations. HEMI's owners plan to list the business on the Toronto Stock Exchange (TSE) in the next 5 years; accordingly,...
5248,000 225,000 756,400 754.358 Cash Marketable Equity Securities (Note 1) Accounts Receivable-Net (Note 2) Inventories (Note 3) Total Current Assets 374,000 954,950 102,000 Investment in Nowell Co.(15-percent owned) Investment in Knight Co.(25-percent owned) Total Investments 377.000 110,000 743,000 110,000 743,000 1,961,852 267.600) 1,151,692 Total Plant Assets at Cost Plant Assets-Net Total Assets IABILITIES AND SHAREHOLDERS' EQUITY $140,000 535,157 118,000 $100,000 493.296 75,000 40,000 Notes Payable Accounts Payable Rental Fees Received in Advance Income Taxes Payable Total Current Liabilities 1,172,924 1.166,635...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago