Homework Answers
Solution:
| Fair Value through net income [56000 Shares*$111 per share] | $ 6,216,000 |
Adams industries does not significantly influence the Fedex Company due to its small holding in the company. So, It should disclose the investment at fair value every year.
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Adams Industries holds 56,000 shares of FedEx common stock, which is not a large enough ownership...
Adams Industries holds 56,000 shares of FedEx common stock, which is not a large enough ownership...
Adams Industries holds 56,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exercise significant influence over FedEx. On December 31, 2021, and December 31, 2022, the market value of the stock is $97 and $111 per share, respectively. What is the appropriate reporting category for this investment and at what amount will it be reported in the 2022 balance sheet? Fair value through net income Equity method Consolidation
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Adams Industries holds 56,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exercise significant influence over FedEx. On December 31, 2021, and December 31, 2022, the market value of the stock is $97 and $111 per share, respectively. What is the appropriate reporting category for this investment and at what amount will it be reported in the 2022 balance sheet? Fair value through net income Equity method Consolidation
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Adams Industries holds 40.000 shares of FedEx common stock, which Is not a large enough ownershilp Interest to allow Adams to exercise significant Influence over FedEx. On December 31, 2018, and December 31, 2019, the market value of the stock is $95 and $100 per share, respectively What Is the appropriate reporting category for this Investment and at what amount will it be reported in the 2019 balance sheet? air value theough net inoome
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $745,000 and sold the bonds on January 3, 2022, for $748,500. At December 31, the bonds had a fair value of $742,500. What pretax amounts did S&L include in its 2021 and 2022 net income as a result of this investment (ignoring interest)? (Enter all amounts as positive values.) Pretax Amount 2021 2022 Gain...
On January 1, 2021. Nana Company paid $100,000 for 6200 shares of Papa Company common stock The ownership in Papa Company is 10%. Nana Company does not have significant influence over Papa Company Papa reported net income of $60,000 for the year ended December 31, 2021. The fair value of the Papa stock on that date was 563 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31...
Blue Inc. acquired 20% of the outstanding common stock of
Theresa Kulikowski Inc. on December 31, 2020. The purchase price
was $1,111,200 for 46,300 shares. Kulikowski Inc. declared and paid
an $0.80 per share cash dividend on June 30 and on December 31,
2021. Kulikowski reported net income of $788,000 for 2021. The fair
value of Kulikowski’s stock was $27 per share at December 31, 2021.
Assume that the security is a trading security.
Prepare the journal entries for Blue...
Bramble Inc. acquired 20% of the outstanding common stock of
Theresa Kulikowski Inc. on December 31, 2020. The purchase price
was $1,168,400 for 50,800 shares. Kulikowski Inc. declared and paid
an $0.75 per share cash dividend on June 30 and on December 31,
2021. Kulikowski reported net income of $663,000 for 2021. The fair
value of Kulikowski’s stock was $26 per share at December 31, 2021.
Assume that the security is a trading security.
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Your answer is partially correct....
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