Question
In: Accounting
On January 3, 2018, Dart Co. purchased 500 shares of Mina Corp. ordinary shares for P36,000....
On January 3, 2018, Dart Co. purchased 500 shares of Mina Corp. ordinary shares for P36,000. On December 2, 2019, Dart received 500 stock rights from Mina. Each right entitles the holder to acquire one share of stock for P85. The market price of Mina’s stock was P100 a share immediately before the right were issued, and P90 a share immediately after the rights were issued. Dart sold its rights on December 31, 2020, for P10 a right. Dart’s gain from the sale of right is?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2018, Bluewater Ltd. purchased 50% of the outstanding common shares of Huey Corp....
On January 1, 2018, Bluewater Ltd. purchased 50% of the
outstanding common shares of Huey Corp. for $500,000 cash and has
the ability to significantly influence Huey Corp.'s financial and
operating policies. At the date of acquisition of the shares, Huey
Corp.'s net assets had a fair value of $700,000. Their carrying
value was $200,000. The difference was attributable to the fair
value of Huey Corp.'s buildings and its land exceeding carrying
value, each accounting for one half of the...
On January 1st, 2018, MTU Inc. purchased 25,000 of the 100,000 common shares of Blizzard Co....
On January 1st, 2018, MTU Inc. purchased 25,000 of the 100,000
common shares of Blizzard Co. for $14 per share. Blizzard declared
a dividend of $30,000 on June 30th, 2018. On Dec. 31, 2018,
Blizzard reported net income of $400,000 and the fair market value
of its stock at that point in time was $18 per share.
Prepare all necessary journal entries relating to this
investment for MTU Inc.
On January 1, 2020, Windsor Co. purchased 24,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2020, Windsor Co. purchased 24,000 shares (a 10%
interest) in Elton John Corp. for $1,300,000. At the time, the book
value and the fair value of John’s net assets were
$12,900,000.
On July 1, 2021, Windsor paid $2,890,000 for 48,000 additional
shares of John common stock, which represented a 20% investment in
John. As a result of this transaction, Windsor owns 30% of John and
can exercise significant influence over John’s operating and
financial policies. (Any excess...
On January 1, 2017, Buffalo Co. purchased 25,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2017, Buffalo Co. purchased 25,000 shares (a 10%
interest) in Elton John Corp. for $1,290,000. At the time, the book
value and the fair value of John’s net assets were
$14,300,000.
On July 1, 2018, Buffalo paid $2,910,000 for 50,000 additional
shares of John common stock, which represented a 20% investment in
John. The fair value of John’s identifiable assets net of
liabilities was equal to their carrying amount of $15,500,000. As a
result of this transaction,...
On January 1, 2017, Bonita Co. purchased 24,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2017, Bonita Co. purchased 24,000 shares (a 10%
interest) in Elton John Corp. for $1,470,000. At the time, the book
value and the fair value of John’s net assets were $14,200,000. On
July 1, 2018, Bonita paid $2,830,000 for 48,000 additional shares
of John common stock, which represented a 20% investment in John.
The fair value of John’s identifiable assets net of liabilities was
equal to their carrying amount of $15,500,000. As a result of this
transaction,...
Choco Company had the following capital structure at January 1, 2018: Outstanding Ordinary shares, 600,000 shares...
Choco Company had the following capital structure at January 1,
2018:
Outstanding
Ordinary shares, 600,000 shares $7,200,000
10% stated interest rate convertible bonds issued at par;
each $1,000 bond is convertible into 80 ordinary shares
$5,000,000
During 2018, Choco had the following share transactions:
May 1 Issued 50,000 ordinary shares for $30 per share.
Sep. 1 Redeemed 100,000 ordinary shares at $35 per share.
Nov. 1 Converted $2,000,000 of bonds. Net income for 2018 was
$1,900,000.
The income tax rate...
On January 1, 2X16, Manila Co. has 100,000 outstanding ordinary shares. During the year, Manila Co....
On January 1, 2X16, Manila Co. has 100,000 outstanding ordinary
shares. During the year, Manila Co. reported a net income of
P5,000,000. The income tax rate is 30%. Besides, Manila Co. has
4,000, 10% convertible bonds with 1,000 face amount. Each bond is
convertible into five (5) ordinary shares.
Required: Solve for the following:
1. Determine the amount of basic earnings per share for the
year.
2. Determine the amount of diluted earnings per share under each
of the following...
On January 1, 2X16, Manila Co. has 100,000 outstanding ordinary shares. During the year, Manila Co....
On January 1, 2X16, Manila Co. has 100,000 outstanding ordinary
shares. During the year, Manila Co. reported a net income of
P5,000,000. The income tax rate is 30%. Besides, Manila Co. has
4,000, 10% convertible bonds with 1,000 face amount. Each bond is
convertible into five (5) ordinary shares.
Required: Solve for the following:
1. Determine the amount of basic earnings per share for the
year.
2. Determine the amount of diluted earnings per share under each
of the following...
On January 5, 2008, Grace Co. purchased 70% of the outstanding shares of Leo Co. at...
On January 5, 2008, Grace Co. purchased 70% of the outstanding
shares of Leo Co. at a cost of P500,000. On that date, the
outstanding ordinary shares of Leo had a P700,000 balance, while
accumulated profits had a P100,000 balance. All the book values of
assets and liabilities of Leo approximated their fair values except
for an equipment which was understated by P50,000
For the year 2008, Grace sold an equipment to Leo reporting a
gain on sale of P25,000...
On 1 january 2018, Abc Co purchased assets of XYZ Co at auction for $1,560,000. An...
On 1 january 2018, Abc Co purchased assets of XYZ Co at auction
for $1,560,000. An independent appraisal of the fair value of the
assets acquired is listed below:
Land $171,600
Building $514, 800
Equipment $600,000
Inventories $429,000
On 1 september 2018, ABC Co exchanged land and cash of $8000 for
a plant. The land had a book value of $55,000 and a fair value of
$60,000. The exchange has commercial susbtance.
On 31 November 2018, ABC co sold equipment...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Joni is a financial planner for ABC firm. She provided all of her clients with the...
- Suppose you plan to retire in 40 years. If you make 10 annual investments of $...
- PLEASE DONT FORGET TO SOLVE THE ASSIGNMENT QUESTION MOST IMP: Ex1) Download the code from the...
- Customer is saying website is running slow when his end clients are trying to access the...
- Note: The answers to the following questions should be typed in the block of comments in...
- Python Describe the procedure for setting up the display of an image in a window.
- what are the fundamental similarity and differences between gap and dgap?
ADVERTISEMENT