George Corporation acquired all of the stock of Johnson Corporation on January 2, 2022. The book value of the net assets of Johnson on that date was $100 million and the fa values of Johnson's identifiable net assets equaled the book values, except for previously unreported developed technology valued at $80 million. The fair market value of the shares issued by George Corporation was $800 million. The developed technology is straight-line amortized over 5 years. For the year ended December 31, 2022, Johnson reported net income of $70 million and declared and paid dividends of $20 million. Goodwill impairment for 2020 is $0 million. The developed technology is not impaired. George uses the complete equity method to account for its investment in Johnson on its own books.
Q: Which one of the following is a tangible asset of a restaurant? Question 8 Answer a. Goodwill. b.…
A: Tangible Assets : A tangible asset that has a physical form and can be touched and felt.These assets…
Q: A lease agreement that qualifies as a finance lease calls for annual lease payments of $26,269 over…
A: The lease is an option where one party can take an asset on rent from another party and there is no…
Q: On May 1, Year 1, a company paid an $18,000 premium on a 36-month insurance policy for coverage…
A: The expenses and revenue are reocrded using different ,ethods as accrual basis and cash basis. Using…
Q: Ryan Corporation manufactures auto steering systems. Prime cost and machine time estimates for one…
A: A predetermined overhead rate is calculated at the start of the accounting period by dividing the…
Q: Using the fundamental equation of accounting, show how each transaction impacts the other. Create a…
A: Introduction:In Every type of Accounts the left side of T Account is the debit side and the right…
Q: Allocate the dividends to each type of stock under assumptions (a) and (b). Express your answers in…
A: The preferred shares are the shares issued by the company to raise capital. The preferred stock…
Q: What is an overbilling and how is it used in percentage - of - completion accounting?
A: In construction and project accounting, overbilling refers to the situation where a contractor…
Q: s) In 2022, Demeter, Inc. reported depreciation expense of $1,279,000 and depreciation for tax…
A: Introduction:Deferred tax liability is the temporary difference between the way certain items are…
Q: 2:14 Love Company's accounting records show an after-closing balance of $20,900 in its Retained…
A: Statement of retained earnings is one of the financial statements that shows change in amount of…
Q: Blossom Company is considering two different, mutually exclusive capital expenditure proposals.…
A: Net present value is the difference between the present value of future cash flows and initial…
Q: evaluate if a taxpayer is subject to the alternative minimum tax or not Ryan is a single filing…
A: The alternative minimum tax (AMT) is, as the name suggests, an alternative tax that is calculated…
Q: All Things Auto uses an activity-based costing system to assign costs in its auto-parts division.…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: Required Information [The following information applies to the questions displayed below.] Clopack…
A: Equivalent units means where the some goods remain incomplete at the end of process and we need to…
Q: c. Show the beginning balances and the transactions in a horizontal statements model.
A: The accounting equation states that assets equal the sum of liabilities and equity. Retained…
Q: On Jan. 1, deposit $5000 that pays 8% nominal annual interest, compounded quarterly. Withdraw in 5…
A: Amount to be withdrawn = $5,000 x [A/P, 8%, 5] = $5,000 x…
Q: Exercise 2-4 (Algo) Computing and Using the CM Ratio [LO2-3] Last month when Holiday Creations,…
A: Cost volume profit analysis is the technique used by management for decision making. The methods…
Q: Jeremy (unmarried) earned $100,000 in salary and $6,000 in interest income during the year. Jeremy's…
A: Taxable income:It is the income of a taxpayer on which the revenue authorities will impose tax. The…
Q: What does someone at their stage of academic and professional development need to know about…
A: Employment trends in accounting and finance:Employment trends in accounting and finance pertain to…
Q: Park Mischner owns Old Times Buttons, which employs thirteen people. Park wants to perform a…
A: Answer:- Here discuss about the benefits package which are available to the employees in the…
Q: ob number 2288 had the following data: Direct Labor hours used 238 Supplies used $450 Hourly wage…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: A&E Sports operates game facility. A&E had the following take place in February 1) Paid $2,278 for…
A: Under accrual basis of accounting, revenues are recorded in books of account when revenues are…
Q: Rocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an apartment…
A: Adjusted Gross Income (AGI) refers to an individual's total gross income from all sources, including…
Q: In 2023, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full- time…
A: Earned Income Tax is the United States tax credit and it was introduced to keep families out of…
Q: 19. Using the following information, calculate the return on assets. Net income for November Total…
A: The objective of this question is to calculate the Return on Assets (ROA) using the given…
Q: what is the overhead for the year
A: Predetermined overhead rate:The predetermined overhead rate is the rate which is used to estimate…
Q: Requirement 1. Enter the remaining transactions for the month of April into the expanded accounting…
A: An accounting equation, also known as the balance sheet equation, is a fundamental principle in…
Q: On October 1, 2023, B's employer provided her with the use of a car. The car was purchased for…
A: The taxable income is the portion of an individual's or entity's income that is subject to taxation…
Q: cash assets, and liabilities total $72,5 Between July 1 and July 29, the noncash asset paid, and the…
A: Statement of Partnership Liquidation records and shows the the transactions of liquidation and…
Q: A broadcasting company failed to make a year-end accrual of $420,000 for fines due to a violation of…
A: The objective of the question is to determine the impact on net income due to the failure of the…
Q: Aikman Corporation has the following cost records for June 2022: Indirect factory labour Direct…
A: SCHEDUALE OF COST OF GOODS MANUFACTUREDSchedule Of Cost Of Goods Manufactured are those Cost Which…
Q: On January 1, 2023, Marigold Inc. signed a fixed-price contract to have Builder Associates construct…
A: Interest capitalization refers to the practice of adding interest costs incurred to the costs of…
Q: MOSS COMPANY Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit…
A: CASH FLOW STATEMENT The cash flow statement is prepared to record the cash flow from various…
Q: Sapphire Jewellery Pty Ltd (SJ) is a resident private company. During the 2023 income year, SJ…
A: A capital gain on the sale of shares occurs when an individual or entity, as the case may be, sells…
Q: Prepare all journal entries and adjusting journal entries necessary to record the information below…
A: Journal entries for year 2022:DateParticularsLF NoDebit ($)Credit ($)15-Nov-22Patent A/c Dr49,500…
Q: Charlie owns all the issued shares of X Ltd. These common shares have an ACB and PUC of $60,000 and…
A: On the event of reorganization of share capital with continued interest of all parties, shareholders…
Q: On January 1, 2021, Eagle Company borrows $22,000 cash by signing a four-year, 6% installment note.…
A: Amortization schedule: It implies a table that shows or presents the periodic payments related to a…
Q: The Devon Motor Company produces automobiles. On April 1, the company had no beginning inventories,…
A: An income statement is also known as profit and loss account from which came able to know the net…
Q: Sophia incorporated a company last year by investing an amount of $5 Million. For the expansion of…
A: A business requires funds to run its operations. It requires short-term funds (accounts payable,…
Q: Current Attempt in Progress McGill and Smyth have capital balances on January 1 of $41,000 and…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: Blossom Ltd., which follows ASPE had the following comparative statement of financial position:…
A: Cash flow from operating activity includes transactions related to cash inflow and outflow of the…
Q: Required information [The following information applies to the questions displayed below.] Cranshaw…
A: Personnel Department Estimated Cost Activity Level Activity Rate Routine Matters $…
Q: Marbury is the payroll accountant at All's Fair Gifts. The employees of All's Fair Gifts are paid…
A: Federal Payroll SystemThe federal government of the United States processes and maintains employee…
Q: Problem 3-16 (Algo) Plantwide Predetermined Overhead Rates; Pricing [LO3-1, LO3-2, LO3-3] Landen…
A: Formual used Predetermined overhead rate = Estimated overhead / Estimated direct labor hoursTotal…
Q: Sophie is a single taxpayer. For the first payroll period in July 2022, she is paid wages of $1,100…
A: Adjusted Wages = Gross wages - Amount of total allowances = $1,100 - $179…
Q: 2021 2020 Value of fixed assets 2200 1800 accumulated depreciation 800 600…
A: The objective of the question is to calculate the depreciation for the year 2021 using the given…
Q: Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance…
A: The basic Accounting Equation is Assets = Equity + LiabilitiesAssets are the resources owned by the…
Q: L Inc., a Canadian-controlled private corporation, has a June 30 taxation year-end. L filed its…
A: The late filing penalty typically refers to a penalty imposed by tax authorities on a taxpayer when…
Q: Tano Company issues bonds with a par value of $180,000 on January 1 of the current year. The bonds'…
A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value amount…
Q: Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Calculate interest expense for the year ended December 31, 2024.
A: Step 1 : Determine the present value of bonds payableInterest Expense = ParticularAmount($)PVAF/PVA…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 4 images
- On January 1, 2020, Jumper Co. acquired all of the common stock of Cable Corp. for $540,000. Annual amortization associated with the acquisition amounted to $1,800. During 2020, Cable recognized net income of $54,000 and paid dividends of $24,000. Cable's net income and dividends for 2021 were $86,000 and $24,000, respectively. Required: Assuming that Jumper decided to use the partial equity method, prepare a schedule to show the balance in the investment account at the end of 2021.Taylor Company acquired the assets and assumed the liabilities of Swift Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000. Issued 10,000 ordinary shares at P10 par with a market price of Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet Share issue costs paid amounted to P15,000. Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Taylor Company Swift Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000 It was…Ed Company acquired the assets and assumed the liabilities of Sheeran Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000. Issued 10,000 ordinary shares at P10 par with a market price of P15. Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet paid. Share issue costs paid amounted to P15,000. Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Ed Company Sheeran Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000…
- Ed Company acquired the assets and assumed the liabilities of Sheeran Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000.Issued 10,000 ordinary shares at P10 par with a market price of P15.Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet paid.Share issue costs paid amounted to P15,000.Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Taylor Company Swift Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000 It…A Company acquired the assets and assumed the liabilities of B Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: • Cash amounting to P2,000,000. • Issued 10,000 ordinary shares at P10 par with a market price of P15. • Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: • Legal fees amounting to P120,000, 70% of which is not yet paid. • Share issue costs paid amounted to P15,000. • Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: A Company B Inc.Total Assets 16,500,000 5,235,000Total Liabilities 2,500,000 500,000Ordinary Shares 5,000,000 1,250,000Share premium 1,500,000 750,000Retained Earnings 6/30/22 7,500,000 2,735,000It was determined that the book value of the assets and liabilities of the…On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. The consideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shares with a market price of P45 per share. The book value of Luna Corp.’s identifiable net assets approximate its fair value, except for the following: • Merchandise inventory’s fair value is lower than the book balance by 150,000. • Equipment-A, with 2 years remaining useful life, costing P300,000 is understated by P50,000. • Land with a fair value of P500,000 is recognized in the books amounting to P350,000. The following events happened to Luna Corp. • Equipment-A was sold in June 30, 2023 for P320,000. • 60% of merchandise inventory were sold in 2022. • There is no movement as to the ordinary shares of Luna Corp during the year. The unadjusted trial balance as of December 31, 2022 were as follows: Lucas Company Luna Corp Cash 2,240,000 1,800,000 Trade Receivables 1,000,000 960,000 Merchandise Inventory…
- A Company acquired the assets and assumed the liabilities of B Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: • Cash amounting to P2,000,000. • Issued 10,000 ordinary shares at P10 par with a market price of P15. • Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: • Legal fees amounting to P120,000, 70% of which is not yet paid. • Share issue costs paid amounted to P15,000. • Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: A Company B Inc.Total Assets 16,500,000 5,235,000Total Liabilities 2,500,000 500,000Ordinary Shares 5,000,000 1,250,000Share premium 1,500,000 750,000Retained Earnings 6/30/22 7,500,000 2,735,000It was determined that the book value of the assets and liabilities of the…On January 2, 2025, Cullumber Company purchased 20% of the outstanding common stock of Blossom, Inc. and subsequently used the equity method to account for the investment. During 2025, Blossom reported net income of $1380000 and distributed dividends of $600000. The ending balance in the Investment in Cullumber account at December 31, 2025 was $1020000 after applying the equity method during 2025. What purchase price did Cullumber pay for its investment in Blossom, Inc.? O $1176000 O $624000 O $1416000 O $864000On 30 June 2022, Southside Ltd purchased 5000 corporate bonds in ABC Ltd at $10.00 per bond. On acquisition, Southside Ltd classified this investment in financial assets as being ‘measured at fair value through other comprehensive income’. At 30 June 2023, the fair value of the corporate bonds had increased to $14.00. At 30 June 2024 the fair value of the corporate bonds had decreased to $13.00. All of the corporate bonds were sold on 30 June 2024. At 30 June 2022, the only equity item was paid-up capital of $100 000. And this has not changed. The applicable tax rate is 30 per cent.REQUIREDPrepare an extract of the statement of profit or loss and other comprehensive income, and statement of changes in equity, for the reporting period ending 30 June 2024 in which the reclassification adjustment for financial assets measured at fair value through other comprehensive income is detailed.
- SUKON Company acquired equity securities at the beginning of 2020. SUKON Company provided you the following information: Security. No. of shares Acquisition Cost AKO Co. shares 100,000 shares P5,250,000 AKO shares were acquired and were designated as financial asset at fair value through OCI. The shares were acquired at P52.50 per share which included a P2.50 per share transaction cost. Half of the AKO shares were sold at P58 per share on July 1, 2021. Fair value, Fair value, Dec. 31, 2020 Dec. 31, 2021 P55/share P62/share How much is the carrying value of the Investment on December 31, 2021? O 2,900,000 O 2,500,000 O 3,100,000 O 2,750,000On January 2, 2024, Sanborn Tobacco Incorporated bought 5% of Jackson Industry’s capital stock for $92 million. Jackson Industry’s net income for the year ended December 31, 2024, was $122 million. The fair value of the shares held by Sanborn was $102 million at December 31, 2024. During 2024, Jackson declared a dividend of $62 million. 1. Record the purchase of Jackson Industry capital stock for $92 million. 2. Record Sanborn Tobacco's portion of Jackson Industry's net income of $122 million. 3. Record the dividend revenue. 4. Record the fair value adjustment.On January 2, 2022, Promenade Company purchased 25% of Twilight Company's ordinary shares; no goodwill resulted from the purchase. Promenade appropriately carries this investment at equity and the balance in Twilight's investment account was P3,800,000 at December 31, 2022. Twilight reported net income of P2,400,000 for the year and paid dividends amounting to P960,000 during 2022. How much did Promenade pay for its investment in Twilight?