X Ltd. (X) purchased 40% of Y Ltd. (Y) on January 1, 2022, for $400,000. Y...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
X Ltd. (X) purchased 40% of Y Ltd. (Y) on January 1, 2022, for $400,000. Y paid dividends of $50,000 in each year. Y's income statements for 2022 and 2023 showed the following. Time left 1:29:35 2022 2023 Income (loss) before income taxes $100,000 ($60,000) Income taxes expense (recovery) 40,000 (15,000). Net income (loss) $60,000 ($45,000) Other comprehensive income (next of 20,000 25,000 tax) Comprehensive income (loss) $80,000 ($20,000) At December 31, 2022, the fair value of the investment was $440,000 and at December 31, 2023, the fair value of the investment was $420,000. Required (25 marks): a) Prepare X's journal entries for 2022 and 2023, assuming that this is a non- strategic investment and is accounted for at fair value through profit and loss (FVTPL). --- X Ltd. (X) purchased 40% of Y Ltd. (Y) on January 1, 2022, for $400,000. Y paid dividends of $50,000 in each year. Y's income statements for 2022 and 2023 showed the following. Time left 1:29:35 2022 2023 Income (loss) before income taxes $100,000 ($60,000) Income taxes expense (recovery) 40,000 (15,000). Net income (loss) $60,000 ($45,000) Other comprehensive income (next of 20,000 25,000 tax) Comprehensive income (loss) $80,000 ($20,000) At December 31, 2022, the fair value of the investment was $440,000 and at December 31, 2023, the fair value of the investment was $420,000. Required (25 marks): a) Prepare X's journal entries for 2022 and 2023, assuming that this is a non- strategic investment and is accounted for at fair value through profit and loss (FVTPL). ---
Expert Answer:
Answer rating: 100% (QA)
To prepare X Ltds journal entries for 2022 and 2023 for the investment in Y Ltd assuming it is accou... View the full answer
Related Book For
Advanced Accounting
ISBN: 9781264798483
15th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer And Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
To modify an object module, modify the source code and then recompile it. True False
-
Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Which power plant has high load factor?
-
CCN Company produces more than 100 different variations of its basic product and has expended $250,000 in perfecting its newest variation, Zeggo, to the point of starting production. This amount...
-
One strain of periwinkle plants has green leaves and another strain has white leaves. Both strains are true-breeding. You do not know if the phenotypic difference is due to alleles of a nuclear gene...
-
\(18 <20\) Determine if the comparison is true or false.
-
Dousmann Corp.'s sales slumped badly in 2014. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 500,000 units of...
-
What is the interpretation to be given for unlevered firm which does not make use of debt in capital structure and how using interest components lead to reduce tax burden. Please suggest a corporate...
-
City Youth Services (CYS) is a not-for-profit organization established to provide counseling and other services to children under the age of 18. It concentrates on troubled teenagers who are...
-
The Delphi method used for forecasting : A) uses measures thatare believed to influence the behavior of a variable that theresearcher wishes to forecast. B) uses a panel of experts, whoseidentities...
-
Find the volume of revolution V about the x-axis for the given function and interval. f(x) = x5/3, [1, 5]
-
Examine the principles of role-based access control (RBAC) in an operating system. How does it differ from discretionary access control (DAC) ?
-
Define the four necessary conditions for a deadlock to occur. Discuss strategies for deadlock prevention, avoidance, and detection .
-
For a fully discrete whole life insurance of 1000: (i) The gross premium reserve at the end of the 10th year is 220. (ii) The gross premium reserve at the end of the 11th year is 230. (iii) Expenses...
-
Sam, married filing separately without dependents, has $ 3 2 5 , 0 0 0 salary and $ 7 5 , 0 0 0 qualified dividends. Her taxable income is $ 3 8 0 , 0 0 0 . Compute Sam's total tax liability for the...
-
Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Six Flags Entertainment Corporation for the year ended December 31, 2019. Locate the...
-
Suppose that fraction used = / 1.0 + 0.1Mt. for some parameter 1. Write the discrete-time dynamical system and solve for the equilibrium. Sketch a graph of the equilibrium as a function of ....
-
The Reston Rockets Players Association and Mr. Scorekeep, the CEO and majority owner of Reston Rockets Soccer, Inc., ask your help in resolving a salary dispute. Mr. Scorekeep presents the following...
-
Parrot Corporation holds a 42 percent ownership of Sunrise, Inc., and applies the equity method to account for its investment. Parrot assigned the entire original excess purchase price over book...
-
Giant acquired all of Smalls common stock on January 1, 2020, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the...
-
If you were going to research financial reporting fraud what questions would you like to address?
-
When Krispy Kreme restated its 2004 earnings, what impact did the restatement have on the price of the stock?
-
Find the SEC's press release with respect to Rite Aid in 2002 and list the bag of tricks that the company used to cook the books. www. sec.gov/news/press/2002-92.htm.
Study smarter with the SolutionInn App