Question: 14. Nippon Paint acquired 40% shares of Petek Boya as a long-term investment for the purpose of controlling the other company, in January 2023,

14. Nippon Paint acquired ( 40 % ) shares of Petek Boya as a long-term investment for the purpose of controlling the other

14. Nippon Paint acquired 40% shares of Petek Boya as a long-term investment for the purpose of controlling the other company, in January 2023, for 105.000. Petek Boya had net income of 80.000 in 2023, and declared and paid dividends of 25.000 in March 2024. Required: Provide the necessary journal entries, assuming that Nippon uses the equity method 15. If the book value of assets is 900.000, long-term debt is 400.000 and equity is 200.000, what is long-term debt-to-total capital ratio (financial leverage)?

Step by Step Solution

★★★★★

3.53 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

ANSWER 14 Journal Entries using Equity Method Date Particulars Debit Credit Jan 20... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Select the best answer for each of the following. 1. On January 1, 2016, Weaver Company purchased as held-to-maturity debt securities $500,000 face value of Park Corporations 8% bonds for $456,200....

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

The consolidated statement of financial position for MIC as at 31 March 2009 and its comparative for 2008 are shown below: The consolidated income statement for MIC for the year ended 31 March 2009...

14. Nippon Paint acquired 40% shares of Petek Boya as a long-term investment for the purpose of controlling the other company, in January 2023, for 105.000. Petek Boya had net income of 80.000 in...

Consider a function : defined by () = ^4 + 2^3 + 5^2 12. (c) Find the global maximizer for ()

14. Nippon Paint acquired 40% shares of Petek Boya as a long-term investment for the purpose of controlling the other company, in January 2023, for 105.000. Petek Boya had net income of 80.000 in...

Nippon Paint acquired 40% shares of Petek Boya as a long-term investment for the purpose of controlling the other company, in January 2023, for 105.000. Petek Boya had net income of 80.000 in 2023,...

FROM THE ABOVE ARTICLE, 1. CRITIQUE on the Financial Statement and identify where the financials were misvalued and WHY. 2. Discuss the stock market value. 3. Discuss price earning ratio. 4. Analysis...

NEED ANSWER BEFORE 11:00 IF NOT LET ME KNOWTODAY OCTOBER FIRST, THEY ASK ME FOR MORE MONEY BUT DO NOT KNOW HOW TO ADD MORE Text 1 450 A business combination is accounted for properly as an...

The following exercise assesses your ability to do the following:Utilize abstraction to deconstruct a complex problem into individual tasks.Utilize methods in a programming solutionDefine methods...

Corporate Governance FOR NETFLIX: Corporate governance pursues integrative approaches to systems of governance, which controls how the organizations operates internally and externally. It uses...

Plot the 3D Mohr's circle for the stress state where n=0 and determine the principal stresses , graphically or otherwise. Plot the 3D Mohr's circle for the stress state where n=2 and determine the...

Business Operations Management - Tutorial 1 When we define a 'system' (in this case the system represents our operation) we make judgements about where to draw boundaries. In this context the supply...

Promotions should satisfy several business rules. One such rule is to limit the frequency of promotions for a particular SKU. For example, a retailer may insist that a particular product is promoted...

A program in Python that outputs the common names of five of the world's smallest known bird species. Your output should include the common name and size of each species. You can find this...

onda Alantbc University ACG 2021 (00 Connect hapter 3 6 Journal entry worksheet points Depreciation on the company's equipment for 2015 is computed to be 11,000. Hint Nobe: Ester debits before credts...

The domain of the variable in the expression x 3/x + 4 is________.

Abigail (Abby) Boxer is a single mother working as a civilian accountant for the U.S. Army. Her Social Security number is 676-73-3311 and she lives at 3456 Alamo Way, San Antonio, TX 78249. Helen,...

Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the...

Sherry Hopson owns a retail family clothing store. Her store is located at 4321 Circle Drive, Houston, TX 77001. Her employer identification number is 95- 1234321 and her Social Security number is...

Describe how self-perception theory provides an alternative account for dissonance phenomena.

Identify some factors that can lead people to be resistant to persuasive messages.

The elements of a persuasive attempt are the source of the message ("who"), the content of the message ("what"), and the audience of the message ("to whom").