Brown Company issued 100,000 shares of its $1 par common stock to the Mary Keim law firm as compensation for 4,000 hours of legal services performed. Keim’s usual rate is $240 per hour. By what amount should Brown’s paid-in capital—excess of par increase as a result of this transaction?
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Brown Company issued 100,000 shares of its $1 par common stock to the Mary Keim law firm as compensation for 4,000 hours of legal services performed. Keim’s usual rate is $240 per hour.
By what amount should Brown’s paid-in capital—excess of par increase as a result of this transaction?
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- Lewelling Company issued 100,000 shares of its $1 par common stock to the Michael Morgan law firm as compensation for 4,000 hours of legal services performed. Morgan’s usual rate is $240 per hour. By what amount should Lewelling’s paid-in capital—excess of par increase as a result of this transaction?First Link Services granted 8 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $6 per share on the grant date of the restricted stock award. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares? What is the effect on earnings in the year after the shares are granted to executives?Matthew Company issues 4,000 ordinary shares to its external lawyers for services related to the successful completion of a lawsuit that Matthew Company is currently defending. The lawyers spent 250 hours working on the case. On the basis of recent invoices from the lawyers, Matthew Company determines the fair value of the services received to be P1,400 per hour. The quoted price of the shares was P58. The amount to be reported as expense in relation to legal services received is.
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- a. Matthew Company issues 4,000 ordinary shares to its external lawyers for services related to the successful completion of a lawsuit that Matthew Company is currently defending. The lawyers spent 250 hours working on the case. On the basis of recent invoices from the lawyers, Matthew Company determines the fair value of the services received to be P1,400 per hour. The quoted price of the shares was P58. The amount to be reported as expense in relation to legal services received is. b. Mark Company hired Luke, an external consultant, to assess its oil reserves. The service was provided over a five-month period and will be settled by Mark Company issuing 100 of its shares to Luke to the value of P40,000 at issuance. Mark Company estimated the cash fair value of the service at 38,000, based on bids from other consultants. Luke, the consultant was considered an employee for tax purposes. The amount reported as expense in relation to the consultancy service isSlytherin Services, Inc. granted 8 million of its $1 par common shares to executives subject to foreiture if employment is terminated within three years. The common shares have a market price of $6 per share on the grant date of the restricted stock award. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares (first answer, no dollar signs or commas, rounded to the nearest whole dollar)?On January 1, 2021, Kendall Inc. purchased 25,000 shares of Kylie Company at a cost per share of P100. Kylie Company's outstanding ordinary shares are 100,000. Kendall is part of Kylie's board of directors. During the year, Kylie Company paid cash dividends of P700,000 and had a net income of P2,500,000. How much is the Investment in associate on December 31, 2021?
- On January 1, 2024, Nana Company paid $100,000 for 6,300 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 $51,000 for the year ended December 31, 2024. The fair value of the Papa stock on that date was $50 per share. What amount will be reported in the balance sheet of Nana Company for the Investment in Papa at December 31, 2024? Multiple Choice O O $270,000 $315,000 $255,000 $240,000On January 1, 2024, Nana Company paid $100,000 for 8, 100 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 $55,000 for the year ended December 31, 2024. The fair value of the Papa stock on that date was $55 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2024? A: $400, 500B: $445, 500C: $385,500D: $ 370, 500Fizer Pharmaceutical paid $68 million on January 2, 2021, for 4 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne’s operations. Fizer received dividends of $1 per share on December 21, 2021, and Carne reported net income of $40 million for the year ended December 31, 2021. The fair value of Carne’s common stock at December 31, 2021, was $18.50 per share.∙ The book value of Carne’s net assets was $192 million.∙ The fair value of Carne’s depreciable assets exceeded their book value by $32 million. These assets had an average remaining useful life of eight years.∙ The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill.Required:Prepare all appropriate journal entries related to the investment during 2021.