Question

On July 1, 2019, Tremen Corporation acquired 48% of the shares of Delany Company. Tremen paid...

On July 1, 2019, Tremen Corporation acquired 48% of the shares of Delany Company. Tremen paid 200,000 for the investment, and that amount is exactly equal to 48% of the fair value of identifiable net assets on Delany's statement of financial position. Delany recognized net income of 35,000 for 2019, and paid 22,000 dividends to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of: Select one: A. 206,240 B. 216,800 C. 210,560 D. 200,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On July 1, 2018, Tremen Corporation acquired 35% of the shares of Delany Company. Tremen paid...
On July 1, 2018, Tremen Corporation acquired 35% of the shares of Delany Company. Tremen paid $3,120,000 for the investment, and that amount is exactly equal to 35% of the book value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,000,000 for 2018, and paid $180,000 of dividends each quarter to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of: Multiple Choice $3,666,000. $3,407,000. $3,295,000....
On July 1, 2018, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid...
On July 1, 2018, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid $3,100,000 for the investment, and that amount is exactly equal to 40% of the book value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,100,000 for 2018, and paid $150,000 of dividends each quarter to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of: Multiple Choice $3,720,000. $3,480,000. $3,320,000....
On July 1, 2021. Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid...
On July 1, 2021. Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid $3,000,000 for the investmentand that amount is exactly equal to 40% of the book value of identifiable net assets on Delany's balance sheet Delany recognized net income of 1,000,000 for 2021, and paid $150,000 of dividends each quarter to its shareholders. After all closing entries are made for the year ended December 31, 2021. Tremen's in Delany Company" account would have a balance of
On April 1, 2018, BigBen Company acquired 30% of the shares of LittleTick, Inc. BigBen paid...
On April 1, 2018, BigBen Company acquired 30% of the shares of LittleTick, Inc. BigBen paid $100,000 for the investment, which is $40,000 more than 30% of the book value of LittleTick's identifiable net assets. BigBen attributed $15,000 of the $40,000 difference to inventory that will be sold in the remainder of 2018, and the rest to goodwill. LittleTick recognized a total of $20,000 of net income for 2018, and paid total dividends for the year $10,000; these dividends were...
On 1 July 2019, Adelaide Ltd acquired 75% of the issued shares of Canberra Ltd for...
On 1 July 2019, Adelaide Ltd acquired 75% of the issued shares of Canberra Ltd for $720,000. At this date, the equity of Canberra Ltd consisted of share capital of $400,000 and retained earnings of $210,000. All the identifiable assets and liabilities of Canberra Ltd were recorded at amounts equal to fair value except for the following. Carrying Amount Fair value Machine (cost $50,000)                      20,000          24,000 Plant (cost $400,000)        200,000       280,000 Inventories                      50,000          66,000...
On 1 July 2019 ABC Ltd acquired 50 000 shares in DEF Ltd at a price...
On 1 July 2019 ABC Ltd acquired 50 000 shares in DEF Ltd at a price of $20 each. There were brokerage fees of $1000. The closing market price of DEF Ltd shares on 30 June 2020 which is the entity’s financial year end was $24. ABC Ltd has not made the election to account for its equity investments at fair value through Other Comprehensive Income. Required: Prepare the relevant journal entries for ABC Ltd to account for the investment...
Papilon Corporation acquired 90,000 shares of the 100,000 outstanding no-par ordinary share capital of Silicon Company...
Papilon Corporation acquired 90,000 shares of the 100,000 outstanding no-par ordinary share capital of Silicon Company for a price of P1,200,000 on January 1, 2011 at the time when Silicon Company had book and fair values as shown below. Papilon Corporation also paid P96,000 direct acquisition costs in the form of legal fees to outside consultants.   Ordinary Share Capital P480,000 Accumulated Profits 600,000 Total net assets at book value P1,080,000 Add: Differences between current fair value and book value Inventories...
On 1 July 2019, Alpha Ltd acquired 80% of the shares (ex div.) of Beta Ltd...
On 1 July 2019, Alpha Ltd acquired 80% of the shares (ex div.) of Beta Ltd for $285 000. The NCI owns the remaining 20% of the shares in Beta Ltd. At this date the shareholders’ equity of Suburb Ltd consisted of: Share capital $150 000 Retained earnings 75 000 General reserve 60 000 At this date, all the identifiable assets and liabilities of Suburb Ltd were recorded at amounts equal to their fair values except for the following: Carrying...
Papilon Corporation acquired 90,000 shares of the 100,000 outstanding no-par ordinary share capital of Silicon Company...
Papilon Corporation acquired 90,000 shares of the 100,000 outstanding no-par ordinary share capital of Silicon Company for a price of P1,200,000 on January 1, 2011 at the time when Silicon Company had book and fair values as shown below. Papilon Corporation also paid P96,000 direct acquisition costs in the form of legal fees to outside consultants.   Ordinary Share Capital P480,000 Accumulated Profits 600,000 Total net assets at book value P1,080,000 Add: Differences between current fair value and book value Inventories...
On 1/1/2019 Company XXX purchased 30% of shares of YYY Company for $ 250,000. On this...
On 1/1/2019 Company XXX purchased 30% of shares of YYY Company for $ 250,000. On this date, YYY had stockholders’ equity of $ 500,000. The book values of YYY’s net assets approximated their fair values, except for land, which had fair value exceeding its book value by $ 200,000, and inventory, which had book value exceeding its fair value by $ 10,000 (all sold in 2019). In 2019, YYY reported net income of $ 100,000 and paid $ 20,000 in...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT