Paul Corp. owns 90% of Sam Inc.’s outstanding common stock. The carrying value of the investment...
Paul Corp. owns 90% of Sam Inc.’s outstanding common stock. The carrying value of the investment in Sam is $170,000 and the fair value of this investment is $250,000. Paul sells half of its Sam Inc. shares for $130,000 and records a gain of
Homework Answers
| Sale | 130,000 |
| + Fair value of balance investment (250,000/2) | 125,000 |
| - entire carrying value | (170,000) |
| Gain | 85,000 |
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Paul Corp. owns 90% of Sam Inc.’s outstanding common stock. The
carrying value of the investment...
Panda Corporation owns 90% of Squirrel Inc.'s outstanding common stock. The carrying value of the investment...
Panda Corporation owns 90% of Squirrel Inc.'s outstanding common stock. The carrying value of the investment in Sam is $180,000 and the fair value is $260,000. Panda sells half its Squirrel Inc. shares for $120,000. What is the carrying value of the remaining shares?
Is this correct? Sam Inc. is a 90% owned subsidiary of Paul Corp. Paul sold land...
Is this correct?
Sam Inc. is a 90% owned subsidiary of Paul Corp. Paul sold land to Sam for $100,000 that originally cost Paul $50,000. Paul uses the fully adjusted equity method. What consolidation entry is required in the year the land is sold to Sam? 01 Drinve Dr Investment in Sam 45,000 Cr Gain on sale of land 45,000 Dr Gain on sale of land 45,000 Cr Land 45,000 Dr Investment in Sam 50,000 Cr Land 50,000 Dr Gain...
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Treetop Inc. (Treetop) has 19,700 shares of common stock outstanding. Alice, an individual, owns 7,092 of Treetop's sha...
Treetop Inc. (Treetop) has 19,700 shares of common stock outstanding. Alice, an individual, owns 7,092 of Treetop's shares (worth $1,419,840) and has a total adjusted basis of $1,618,600 in those shares. Harold, another individual, owns the remaining 12,608 shares in Treetop (worth $2,524,160), and Harold has a total adjusted basis of $2,347,500 in the shares. Treetop has assets with a total fair market value of $4,100,000 and total adjusted basis of $2,620,000. Treetop's assets consist of business operating assets, which...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $520,000. Primus has 50,000 shares of common stock outstanding. Sonston reports net income of $120,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $15.00 per share. The value of this stock was $30 per share throughout the year. Primus owns...
Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 65,000...
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P Company owns 90% of the outstanding common stock of S Company. On January 1, 2015,...
P Company owns 90% of the outstanding common stock of S Company.
On January 1, 2015, S Company sold land to P Company for $566,500.
S Company originally purchased the land for $414,900.
On January 1, 2016, P Company sold the land purchased from S
Company to a company outside the affiliated group for $666,100.
Calculate the amount of gain on the sale of the land that is
recognized on the books of P Company in 2016.
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $560,000. Primus has 100,000 shares of common stock outstanding. Sonston reports net income of $160,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $12.00 per share. The value of this stock was $24 per share throughout the year. Primus owns...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $480,000. Primus has 50,000 shares of common stock outstanding. Sonston reports net income of $80,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 5,000 stock warrants outstanding that allow the holder to acquire shares at $13.50 per share. The value of this stock was $27 per share throughout the year. Primus owns...
Is this correct?
Sam Inc. is a 90% owned subsidiary of Paul Corp. Paul sold land to Sam for $100,000 that originally cost Paul $50,000. Paul uses the fully adjusted equity method. What consolidation entry is required in the year the land is sold to Sam? 01 Drinve Dr Investment in Sam 45,000 Cr Gain on sale of land 45,000 Dr Gain on sale of land 45,000 Cr Land 45,000 Dr Investment in Sam 50,000 Cr Land 50,000 Dr Gain...
Treetop Inc. (Treetop) has 19,700 shares of common stock outstanding. Alice, an individual, owns 7,092 of Treetop's shares (worth $1,419,840) and has a total adjusted basis of $1,618,600 in those shares. Harold, another individual, owns the remaining 12,608 shares in Treetop (worth $2,524,160), and Harold has a total adjusted basis of $2,347,500 in the shares. Treetop has assets with a total fair market value of $4,100,000 and total adjusted basis of $2,620,000. Treetop's assets consist of business operating assets, which...
Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net income (exclusive of any investment income) of $520,000. Primus has 50,000 shares of common stock outstanding. Sonston reports net income of $120,000 for the period with 40,000 shares of common stock outstanding. Sonston also has 10,000 stock warrants outstanding that allow the holder to acquire shares at $15.00 per share. The value of this stock was $30 per share throughout the year. Primus owns...
P Company owns 90% of the outstanding common stock of S Company.
On January 1, 2015, S Company sold land to P Company for $566,500.
S Company originally purchased the land for $414,900.
On January 1, 2016, P Company sold the land purchased from S
Company to a company outside the affiliated group for $666,100.
Calculate the amount of gain on the sale of the land that is
recognized on the books of P Company in 2016.
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