On March 1, 202x, the XYZ Company acquired 40% of the voting stock of KLM Company for $6 million. The net worth of KLM book value is $10 million. The fair market value of the KLM assets and liabilities are equal except for a building with book value of $ 3 million has a fair value of $5 million

KLM reported net income of $2 million and made dividends distribution of 1 million during the year ending 12/31/202x. Assume xyz is using the equity method for the investment.

A. was there any good will in this transaction? How much?

B. Make the jounral entry to reflect the above transactions by xyz company during 2020

Assume XYZ uses straight line depreciation and 10 years economic life

Show the general ledger of "investment" account and ending balance by XYZ company on 12/31/20x

On December 31, 2019, Sandhill Corporation had 140,000 common shares outstanding. On April 30, 2020, the company issued an additional 50,000 common shares for cash. On July 31, 2020, the company repurchased and cancelled 20,000 common shares.

During the year ended December 31, 2020, Sandhill earned income before taxes of $40,000,000. Not included in this income was a loss from discontinued operations of $5,000,000 before tax. The company was subject to a 25% income tax rate.

Calculate earnings per share(From continuing operations, Discontinuing operations) data as they should appear on the 2020 income statement of Sandhill Corporation. (Round answers to 2 decimal places, e.g. 52.75.)

Earnings per share
Continuing operations

$
Discontinued operations

Earnings per share

$

Sugar Ltd was involved in the following transactions during 1 July 2019 to 30 June 2020 financial period.

1. On 5 November 2019 the directors of the company decided to raise extra capital by issuing 2 million ordinary shares publicly at a price of $2 each share. The company received application monies of $4,800,000 for 2.4 million shares on 30 November.
2. The company decided to allot shares to applicants on the basis of 10 shares for every 12 shares applied for on 30 December.
3. On 30 December, the excess amounts paid on application were refunded to applicants after the allotment.
4. The funds raised were transferred to the company’s business account.
5. The company paid $300,000 interim dividends from prior retained earnings to ordinary shareholders on 7 February 2020.
6. The company issued 280,000 bonus shares at a price of $2 per share from general reserve on 30 June 2020.
7. The company earned $700,000 profit during the financial year ended 30 June 2020.

Required:

Provide journal entries to record the above transactions for 2019/2020 financial year. (Narrations are required)   

Sugar Ltd was involved in the following transactions during 1 July 2019 to 30 June 2020 financial period.

1. On 5 November 2019 the directors of the company decided to raise extra capital by issuing 2 million ordinary shares publicly at a price of $2 each share. The company received application monies of $4,800,000 for 2.4 million shares on 30 November.
2. The company decided to allot shares to applicants on the basis of 10 shares for every 12 shares applied for on 30 December.
3. On 30 December, the excess amounts paid on application were refunded to applicants after the allotment.
4. The funds raised were transferred to the company’s business account.
5. The company paid $300,000 interim dividends from prior retained earnings to ordinary shareholders on 7 February 2020.
6. The company issued 280,000 bonus shares at a price of $2 per share from general reserve on 30 June 2020.
7. The company earned $700,000 profit during the financial year ended 30 June 2020.

Required:

Provide journal entries to record the above transactions for 2019/2020 financial year. (Narrations are required)

Question 1 Accounting for Equity                                                                   

Sugar Ltd was involved in the following transactions during 1 July 2019 to 30 June 2020 financial period.

1. On 5 November 2019 the directors of the company decided to raise extra capital by issuing 2 million ordinary shares publicly at a price of $2 each share. The company received application monies of $4,800,000 for 2.4 million shares on 30 November.
2. The company decided to allot shares to applicants on the basis of 10 shares for every 12 shares applied for on 30 December.
3. On 30 December, the excess amounts paid on application were refunded to applicants after the allotment.
4. The funds raised were transferred to the company’s business account.
5. The company paid $300,000 interim dividends from prior retained earnings to ordinary shareholders on 7 February 2020.
6. The company issued 280,000 bonus shares at a price of $2 per share from general reserve on 30 June 2020.
7. The company earned $700,000 profit during the financial year ended 30 June 2020.

Required:

Provide journal entries to record the above transactions for 2019/2020 financial year. (Narrations are required)      

The following information relates to the 2020 debt and equity investment transactions of Sarasota Ltd., a publicly accountable Canadian corporation. All of the investments were acquired for trading purposes and accounted for using the FV-NI model, with all transaction costs being expensed. No investments were held at December 31, 2019, and the company prepares financial statements only annually, each December 31, following IFRS.

1. On February 1, the company purchased Williams Corp. 12% bonds, at par value for $560,000, plus accrued interest. Interest is payable April 1 and October 1.

2. On April 1, semi-annual interest was received on the Williams bonds.

3. On July 1, 9% bonds of Saint Inc. were purchased. These bonds, with a par value of $198,000, were purchased at par plus accrued interest. Interest dates are June 1 and December 1. 4. On August 12, 3,400 shares of Scotia Corp. were acquired at a cost of $59.00 per share. A 1% commission was paid.

5. On September 1, Williams Corp. bonds with a par value of $112,000 were sold at 104.6 plus accrued interest.

6. On September 28, a dividend of $0.56 per share was received on the Scotia Corp. shares.

7. On October 1, semi-annual interest was received on the remaining Williams Corp. bonds.

8. On December 1, semi-annual interest was received on the Saint Inc. bonds.

9. On December 28, a dividend of $0.58 per share was received on the Scotia Corp. shares.

10. On December 31, the following fair values were determined: Williams Corp. bonds 102.00; Saint Inc. bonds 97; and Scotia Corp. shares $61.80.

required:

1.Prepare all 2020 journal entries necessary to properly account for the investment in the Williams Corp. bonds.

2.Prepare all 2020 journal entries necessary to properly account for the investment in the Saint Inc. bonds.

3.Prepare all 2020 journal entries necessary to properly account for the investment in the Scotia Corp. shares.

German company and the swap dealer pays and receives under the swap contract that satisfies the following:

 The same swap dealer is involved in this currency swap with the US company and the German company.

 The US company’s net borrowing cost is 5.2% p.a. on $ and the German company’s net borrowing cost is 6.1% p.a. on €.

 The swap dealer pays and receives $ at 5.2% p.a.

(b) Suppose the US company has entered into a 5-year currency swap with the swap dealer regarding the swap mentioned above. The principal amounts are $15 million and €10 million. Suppose that the US company declares bankruptcy at the end of year 3 just before the exchange of payment, when the exchange rate is $1.6/€. What is the cost to the swap dealer in US dollars? Assume that, at the end of year 3, the risk free interest rate is 4% per annum in US dollars and 3% per annum in euros for all maturities. All interest rates are quoted with annual compounding. Assume that the theoretical forward exchange rates can be realized. Also assume there are 360 days in a year.

Hint: In the event of default at the end of year 3, the swap dealer will not receive cashflows from the US company nor pay cashflows to the US company. The cost of default to the dealer is the value of the swap to the swap dealer if the US company had not defaulted at Year 3.

Plz answer 2 sunb-question as a whole. thanks so much. will thumbsup if you did.

In a population of Siberian flying squirrels in western Finland, assume that the the number of pups born to each female over her lifetime has mean μ=3.66μ=3.66 and standard deviation σ=2.9598.σ=2.9598. The distribution of squirrel pups born is non‑normal because it takes only whole, non‑negative values.

Determine the mean number of pups, ¯¯¯¯¯X,X¯, such that in 90%90% of all random samples of such squirrels of size n=60,n=60, the mean number of pups born to females in the sample is less than ¯¯¯¯¯X.than X¯.

You may find the table of ZZ‑critical values useful.

Give your answer to at least two decimal places.

¯¯¯¯¯X=

In a population of Siberian flying squirrels in western Finland, assume that the the number of pups born to each female over her lifetime has mean ?=3.66 and standard deviation ?=2.9598. The distribution of squirrel pups born is non‑normal because it takes only whole, non‑negative values.

Determine the mean number of pups, x¯, such that in 70% of all random samples of such squirrels of size ?=40, the mean number of pups born to females in the sample is less than ?⎯⎯⎯.

Mr. Hunter, CEO of MT Mining Company (MTMC), received a report from the engineering department. The report describes a proposed new mine on the North Ridge of MT. A gold mine had been discovered on the land owned by MTMC. The land is now leased to another company for $300,000 a year (opportunity cost). The lease is going to expire but can be renewed with the same condition. Tests indicated that this mine can produce 90,000 ounces gold for the first year and the production can increase 10 percent for the next four years then decreases 15 percent for next three years. The resources will be exhausted by the end of the eighth year.

MTMC is currently very conservatively financed. Mr. Hunter believes that MTMC can raise $60 million by issuing bond with 9 percent coupon interest rate. However, when the bond is issued, the market interest can fluctuate in the range of 7% to 11%.

The initial cost of the project includes the purchase of necessary machinery ($50 million), one-time environmental protection fee of $2.5 million, and designing fee of $6.5 million. The project needs $1 million as working capital.

The fixed operating cost of the mine is $850,000 per year. The mine needs to hire 20 engineers and managers, 200 workers at the beginning of the project. The average salary for engineers and managers is $40,000 for the first year and average wage for workers is $25,000 for the first year. Both salaries and wages will increase at a constant rate of 10%. The contracts signed with 10 of the engineers and managers are for four years. Starting from year 4, each year 20 workers will be transferred to other mines. The variable cost (excluding wages and salaries) for producing gold is $1.5 per ounce.

The machines will be depreciated by MACRS. According to MT Environment Protection Law, the mine must restore the site to its original environment condition. It is estimated that the cost of restoration will be $1.5 million. When the restoration is finished, the government will return $2 million of environmental fee.

The current price of gold is $300 per ounce. As for the gold price by the time when the project starts, there are three different opinions about the gold price in the future. Most people believe the price will remain the same as the present price. Optimists believe that the gold price will increase 10% while pessimists predict that gold price will further decline by 5%. MTMC is in the 35% tax bracket.

Now you are hired as CFO of MTMC. Mr. Hunter is asking you to make a project analysis and make a presentation to the board of directors within a week.

QUESTION: Should this project be accepted and why?