Pierson Corporation owned 10,000 shares of Hunter Corporation. These shares were purchased in 2011 for $90,000. On November 15, 2015, Pierson declared a property dividend of one share of Hunter for every ten shares of Pierson held by a stockholder. On that date, price of Hunter was $28 per share, there were 90,000 shares of Pierson outstanding. What gain and net reduction in retained earnings would result from this property dividend? when the market Gain = SWER Net reduction in R/E= 28=252
Q: At the beginning of the current season on April 1, the ledger of Sandhill Pro Shop showed Cash…
A: T-Accounts is a T-shaped ledger account prepared for an individual ledger. Transactions recorded…
Q: If uncollectible accounts are determined by the aging-of-receivables method to be $1,240, the…
A: At the year end, Business Entity estimates the amount of accounts receivables, which can become…
Q: F is employed by a public corporation. In year 1, F was granted a stock option to acquire 2,000…
A: In Canada, the tax treatment of stock options follows specific rules. When an employee receives a…
Q: Current Attempt in Progress Blossom Monograms sells stadium blankets that have been monogrammed with…
A: The contribution is calculated as the difference between sales and variable costs. The break-even…
Q: is the total factory overhead costs incurred by Regional Safety Supplies during the period
A: Factory Overhead Cost - It is also refers to the manufacturing overhead or work overhead cost. It is…
Q: Bulluck Corporation makes a product with the following standard costs: Direct materials Direct labor…
A: VARIABLE OH EFFICIENCY VARIANCE Variable OH Efficiency Variance is the variance due to the…
Q: Bagley Incorporated's statement of financial position as at July 31, Year 4, is as follows: BAGLEY…
A: When one corporate entity takes control over one or more other business entities, the transaction is…
Q: If the manufacturing overhead allocation rate is R20 per unit and the manufacturing overheads amount…
A: OverheadIndirect costs incurred while producing goods or services. Overhead costs cannot be directly…
Q: The following data are for Billy Company: Finished goods inventory Work-in-process inventory Raw…
A: Cost of goods manufactured :— It is the total cost of completed finished goods transferred from work…
Q: (a) Prepare the required journal entries for the month of July for Ivanhoe Company. (Round the…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Under…
Q: Current Attempt in Progress Blossom Company boys merchandise on account from Kingbird Company: The…
A: The journal entries are prepared to record the transactions on regular basis. The cost of good sold…
Q: Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The…
A: The high-low method is used to differentiate the mixed costs. Mixed cost is the combination of fixed…
Q: Ultravision Limited anticipates sales of $430,000 from January through April. Materials will…
A: Cash payments schedule is the statement prepared by the entity for the purpose of estimating the…
Q: On January 1, 2024, Maricopa Company purchased land costing $764,000. Instead of paying cash at the…
A: Lets understand the basics.When any item is purchased against notes payable and it is repayable in…
Q: Mead Incorporated began operations in Year 1. Following is a series of transactions and events…
A: An available for sale (AFS) securities are those that do not fall under either the held to maturity…
Q: Factory Overhead Cost Variances The following data relate to factory overhead cost for the…
A: Variance is the difference between the budgeted costs and the actual costs. It is determined to know…
Q: You want to have a million dollars in the bank when you retire. You think you can save $5 000 this…
A: Total Savings in the bank during retirement is $1000000Total savings this year is $5000The increment…
Q: Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce…
A: Answer:- Income statement is one of the financial statements includes total expenditure and revenue…
Q: On 1 July 2023 Cooloola Ltd provided 1 million options to its chief executive officer. The options…
A: Stock options are contracts that give an individual or entity the right (but not the obligation) to…
Q: lling price per unit riable expense per unit xed expense per month it sales per month. largin of…
A: Formulas as follows under:-1. Margin of Safety (in dollars) = Actual Sales - Break-Even Sales2.…
Q: Whitman Company has just completed its first year of operations. The company's absorption costing…
A: Net operating income is the amount of money earned by the entity after deducting the operating…
Q: Sunset Inc. Plastics Company uses process costing and provided the following information for 2020:…
A: Process costing is one of useful cost accounting system. This is used where similar products are…
Q: Exercise 5 The following are accounts taken from the books of Pokemon Training Center for the month…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…
Q: The Street Division of Labrosse Logistics just started operations. It purchased depreciable assets…
A: It is a financial ratio used to analyse the financial statements with respect to the profitability…
Q: Explain how cost information differs for profit measurement/inventory valuation requirements…
A: Cost information serves different purposes in accounting and decision-making, leading to differences…
Q: Wilson Foods Corporation leased a commercial food processor on September 3 for Wilson to make…
A: Leases are used in many sectors and are used for a variety of purposes, such as equipment leasing,…
Q: Alyeska Services Company, a division of a major oil company, provides various services to the…
A: Ratio analysis helps to analyze the financial statements of the company. Management can make…
Q: On January 1, 2020, Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson,…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: 2018, the miths and
A: Federal tax brackets: 2018 tax brackets (for taxes due April 15, 2019)Tax rateSingleHead of…
Q: The following events occur for The Underwood Corporation during 2024 and 2025, its first two years…
A: The allowance for uncollectible represents the amount estimated to be uncollectible from the…
Q: Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: This year (2022), Evan graduated from college and took a job as a deliveryman in the city. Evan was…
A: Answer:- Taxable income:- The part of gross income that is considered taxable is what is utilized to…
Q: Exercise 4-26 (Algo) Special Orders (LO 4-1, 2) Rowe Tool and Die (RTD) produces metal fittings as a…
A: Special order decisions are important decisions being taken in business. Under this, incremental…
Q: Han's Supplies's bank statement contained a $430 NSF check that one of its customers had writt…
A: Note:“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…
Q: follows: The trial balance of Mashaba Local Government Council as at 31 December 202X is as Question…
A: Balance sheet stands for the statement and information that shows the assets and liabilities of the…
Q: An establishment served 50 guests one day and achieved $800.00 in revenue. What is the check average…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…
Q: Based on a predicted level of production and sales of 22,000 units, a company anticipates total…
A: The variable cost per unit is calculated as the total variable costs divided by the number of units…
Q: Accruals are as follows: • Salaries, Php5,000 • Utilities, Php3,000 • Interest, 1% per month, for 3…
A: Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…
Q: rally synthesis inc. manufactures and sells 100 bottles per day. fixed costs are $22,000 and the…
A: As we all know that the fixed cost remain same at all levels of production and sales. Therefore,…
Q: ABC Bank is a domestic bank. It reported the following information in preparation of its quarterly…
A: "Total tax payable" is the sum of all the taxes that an individual or business owes to the…
Q: Required information [The following information applies to the questions displayed below.] Joe and…
A: The definition of adjusted gross income (AGI) is gross income less adjustments to income. Earnings…
Q: On December 31, 2020, Berclair Inc. had 250 million shares preferred stock issued and outstanding.…
A: Typically, EPS is reported in a company's financial statements, including its income statement. It…
Q: Required information Exercise 6-9 (Algo) Record transactions using a perpetual system (LO6-5) [The…
A: The journal entries are prepared to record the transactions on regular basis. The cost of goods sold…
Q: Rainey Enterprises loaned $50,000 to Small Company on June 1, Year 1, for one year at 8 percent…
A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…
Q: Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The…
A: A constraints factor is a factor that stops the entity from expanding its activities further. In…
Q: E7-33A Use operating leverage factor to find fixed costs (Learning Objective 5) Popley Manufacturing…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: Knowledge Check Presented here is information for Cullumber Company. Income tax expense Casualty…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…
Q: Clopack Company manufactures one product that goes through one processing department called Mixing.…
A: In the process costing system, the equivalent number of units are obtained by multiplying the number…
Q: Presented below is information related to Novak Company. 1. On July 6, Novak Company acquired the…
A: Solution:No. General JournalDebit $Credit $1.1.Land$ 350,000Building$…
Q: is the selling price per mask if Personal Protective Gears manufactured 1,850 masks for the period…
A: In the given question, we are provided with data related to inventory and other information.On the…
Step by step
Solved in 3 steps
- Stinson Corporation owned 30,000 shares of Matile Corporation. These shares were purchased in 2011 for $270,000. On November 15, 2015, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder. On that date, when the market price of Matile was $25 per share, there were 270,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend? Gain Net Reduction in Retained Earnings $0 $108,000 $513,000 $756,000 $432,000 $243,000 $432,000 $675,000Stinson Corporation owned 40,000 shares of Matile Corporation. These shares were purchased in 2017 for $360,000. On November 15, 2021, Stinson declared a property dividend of one share of Matile for every ten shares of Stinson held by a stockholder. On that date, when the market price of Matile was $28 per share, there were 360,000 shares of Stinson outstanding. What gain and net reduction in retained earnings would result from this property dividend? Net Reduction in Gain Retained Earnings a. $0 $ 324,000 b. $0 $1,008,000 c. $684,000 $ 324,000 d. $684,000 $ 144,000Lea Corporation owned 20,000 shares of Mia Corporation's P5 par value common stock. These shares were purchased in 2007 for P180,000. On September 15, 2011, Lea declared a property dividend of one share of Mia for every ten shares of Lea held by a stockholder. On that date, when the market price of Mia was P14 per share, there were 180,000 shares of Lea outstanding. What net reduction in retained earnings would result from this property dividend? A. P72,000 B. P252.000 C. P90.000 D. P162.000
- Boxer Company owned 20,000 shares of King Company that were purchased in 2016 for $500,000O. On May 1, 2018, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 50,000 shares of Boxer stock outstanding. The market value of the King stock was $30 per share on the date of declaration and $32 per share on the date of distribution. By how much is retained earnings reduced by the property dividend?Bridgeport Corporation owned 15400 shares of Harper Corporation's $5 par value common stock. These shares were purchased in 2020 for $326326. On May 4, 2022, Bridgeport declared a property dividend of one share of Harper for every twenty shares of Bridgeport stock held by a stockholder. On that date, when the market price of Harper was $35 per share, there were 308000 shares of Bridgeport outstanding. What net reduction in retained earnings would result from this property dividend? (Round intermediate calculations of cross rate to 2 decimal places e.g. 15.25.) ○ $539000 O $326326 ○ $154000 O $231000Bramble Corporation owned 35000 shares of Blossom Corporation. These shares were purchased in 2022 for $315000. On November 15, 2026, Bramble declared a property dividend of one share of Blossom for every ten shares of Bramble held by a stockholder. On that date, when the market price of Blossom was $27 per share, there were 315000 shares of Bramble outstanding. What gain and net reduction in retained earnings would result from this property dividend? O O Gain $0 $0 $567000 $567000 Net Reduction in Retained Earnings $283500 $850500 $126000 $283500
- Ivanhoe Corporation owned 20000 shares of Flint Corporation's $5 par value common stock. These shares were purchased in 2022 for $223000. On September 15, 2026, Ivanhoe declared a property dividend of one share of Flint for every ten shares of Ivanhoe held by a stockholder. On that date, when the market price of Flint was $30 per share, there were 180000 shares of Ivanhoe outstanding. What NET reduction in retained earnings would result from this property dividend? O $200700 O $540000 O $211850 O $3393009. ABC Corporation owned 30,000 shares of UV Corporation. These shares were purchased in 2014 for P270,000. On November 15, 2016, ABC declared a property dividend of one share of UV for every ten shares of ABC held by a shareholder. On that date, when the market price of UV was P14 per share, there were 270,000 shares of ABC outstanding. On November 15, 2016, determine the amount of gainIn September, an investor sold 300 shares of Semi-Tech Company, with an adjusted cost base (ACB) of $8,200, for net proceeds of $6,700. Two weeks later, the investor purchased another 300 shares of Semi-Tech for $7,200 and still holds them. In which of the following ways will the loss on the disposition of the shares be reported for 2011 income tax reporting purposes? O a) The investor will report a capital loss of $1,500. b) The investor will report a capital loss of $1,000. Oc) The investor will not report a capital loss. d) The investor will report a capital loss of $500.
- Clayton Co. owned 30,000 ordinary shares of Dayton Corporation purchased in 2018 for P540,000. On September 20, 2021, Clayton declared a property dividend of 1 share of Dayton for every 5 shares of Clayton stock held by a stockholder. On that date, there were 50,000 ordinary shares of Clayton outstanding, and the market value of Dayton shares was P30 per share. The entry to record the declaration of the property dividend would include a debit to Retained Earnings ofCrane Company owned 22100 shares of Wildhorse Co. purchased in 2017 for $607750. On December 15, 2020, Crane declared a property dividend of all of its Wildhorse Co. shares on the basis of one share of Wildhorse for every 10 shares of Crane common stock held by its stockholders. The property dividend was distributed on January 15, 2021. On the declaration date, the aggregate market price of the Wildhorse shares held by Crane was $915000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of?On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? a. P1,035,000 Cr. b. No entry c. P40,000 Dr. d. P1,060,000 Cr.