On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.’s common stock for $50,000. Pear’s...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.’s common stock for $50,000. Pear’s net income for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of $60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70,000 and $130,000 on December 31, 2020 and December 31, 2021, respectively. How much should Apple Inc. show in the 2020 income statement as income from this investment?
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On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.’s
common stock for $50,000. Pear’s...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.’s common stock for $50,000. Pear’s...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.’s common stock for $50,000. Pear’s net income for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of $60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70,000 and $130,000 on December 31, 2020 and December 31,...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000. Pear's...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000. Pear's net income for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of $60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70,000 and $120,000 on December 31, 2020 and December 31,...
On February 5, 2020. Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000
On February 5, 2020. Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000. Pear's not income for the years ended December 31, 2020, and December 31, 2021, were $10.000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of S60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70.000 and $120.000 on December 31, 2020 and December 31,...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
On January 2, 2020, SF purchased 15% of LA's common stock for $50,000 and classified its...
On January 2, 2020, SF purchased 15% of LA's common stock for $50,000 and classified its investment in LA as trading securities. LA's net income for the year ended 12/31/2020 was $100,000. During 2020, LA declared and paid a total dividend of $30,000. On 12/31/2020, the fair value of the LA stock owned by SF increased to $70,000. How much should SF show dividend income (or dividend revenue) from its investment in LA in its income statement for the year...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $52.000....
On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $52.000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $14,000 and $52,000, respectively. During 2020, Ranger declared and paid a dividend of $66,500. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $71.000. How much should Howdy Doody show in the 2020 Income statement as income from this investment?...
4. On Jan 1, 2008, Brown Corp purchased 12% ABC Corp’s common stock for $50,000. During...
4. On Jan 1, 2008, Brown Corp purchased 12% ABC Corp’s common stock for $50,000. During 2008, ABC declared and paid a dividend of $60,000. ABC Corp also had net income $10,000 for year 2008. On Dec 31, 2008, Brown Corp’s share of ABC common stock had a fair value of $70,000. How much should Brown Corp show in the 2008 I/S as dividend revenue from this investment?
On December 31, 2020, Dow Steel Corporation had 750,000 shares of common stock and 45,000 shares...
On December 31, 2020, Dow Steel Corporation had 750,000 shares of common stock and 45,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $550,000 and $84,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2.000 shares were retired on July 1. Dow's net income...
On September 1, 2020, Tech Company purchased 1,200 shares of common stock of Eagle Inc. for...
On September 1, 2020, Tech Company purchased 1,200 shares of common stock of Eagle Inc. for $120,000, while not obtaining significant influence over Eagle Inc. On November 1, 2020, Tech Company sold 600 shares of the Eagle Inc. stock for $105 per share and incurred brokerage fees of $288 on the sale. At December 31, 2020, Eagle Inc. declared and paid dividends of $5 per share. The fair value of the remaining investment in Eagle Inc. was $66,000 on December...
On February 5, 2020, Apple Inc. purchased 12% of Pear Inc.'s common stock for $50,000. Pear's net income for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. Pear did not pay any dividends in 2020. Pear declared and paid a dividend of $60,000 to all its shareholders in 2021. The fair value of the Pear stock owned by Apple Inc. is valued at $70,000 and $120,000 on December 31, 2020 and December 31,...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2017 and 2018, were $10,000 and $50,000, respectively. During 2018, Ranger declared and paid a dividend of $60,000. There were no dividends in 2017. On December 31, 2017, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2018 income statement...
On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $52.000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $14,000 and $52,000, respectively. During 2020, Ranger declared and paid a dividend of $66,500. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $71.000. How much should Howdy Doody show in the 2020 Income statement as income from this investment?...
On December 31, 2020, Dow Steel Corporation had 750,000 shares of common stock and 45,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $550,000 and $84,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 60,000 common shares. In keeping with its long-term share repurchase plan, 2.000 shares were retired on July 1. Dow's net income...
On September 1, 2020, Tech Company purchased 1,200 shares of common stock of Eagle Inc. for $120,000, while not obtaining significant influence over Eagle Inc. On November 1, 2020, Tech Company sold 600 shares of the Eagle Inc. stock for $105 per share and incurred brokerage fees of $288 on the sale. At December 31, 2020, Eagle Inc. declared and paid dividends of $5 per share. The fair value of the remaining investment in Eagle Inc. was $66,000 on December...
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