Question: please write clearly when explaing it Hammond Corp. purchased 30% of the shares of Freeman Inc. on January 1, 2018 for a total price of

please write clearly when explaing it

Hammond Corp. purchased 30% of the shares of Freeman Inc. on January 1, 2018 for a total price of $2.2 million for 100,000 shares. Freeman Inc. declared a $0.25 per share cash dividend in each quarter that was received on March 15, June 15, September 15 and December 15. Freeman Inc. reported net income of $1 million for the year ending December 31, 2018. At December 31, 2018 the market price per share of Freeman Inc. was $26. 1) Provide all entries required in fiscal 2018 assuming the investment is classified as fair value through profit or loss. (6 marks) 2) Provide all entries required in fiscal 2018 assuming the investment gives Hammond Inc. significant influence and thus the equity method is applied. (6 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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 Accounting Questions!

15 Question 30 (12 points) Hammond Corp purchased 30% of the shares of Freeman Inc. on January 1, 2018 for a total price of $2.2 million for 100,000 shares. Freeman Inc, declared a $0.25 per share...

Hammond Corp. purchased 30% of the shares of Freeman Inc. on January 1, 2018 for a total price of $2.2 million for 100,000 shares. Freeman Inc, declared a $0.25 per share cash dividend in each...

Hammond Corp. purchased 30% of the shares of Freeman Inc. on January 1, 2018 for a total price of $2.2 million for 100,000 shares. Freeman Inc. declared a $0.25 per share cash dividend in each...

Please answer this question: Are plant-based meat substitute products just a fad? Also, how likely is it that a large percentage of the worlds population will switch from eating animal meats to...

Hi, I need help solving this question about the case study below. Can anyone help me out? Question: What would you assess as the fundamental strength of the competitive forces that Beyond Meat faces?...

Can someone help me answer what the critical factors for Beyond Meat and the other makers of plant-based meat substitutes are? oing into 2020, Beyond Meat, a producer March 31, 2020, the company's...

its alot of information but its not all needed to answer the question. i know its a heavy one but please, i really need help. 3.12 CONSOLIDATED INCOME STATEMENT 51 34 tim Notes 2019 2018 Revenue 31...

Can someone help me do a SWOT analysis while explaining what it reveals about the overall attractiveness of Beyond Meats position in 2020? Also, What are the critical elements of Beyond Meats...

The management of Burgermeister fast-food franchise wants to provide hamburgers quickly to customers. It has been using a process by which precooked hamburgers are prepared and placed under hot...

Q-1: What do you think is the most critical environmental issue facing the planet at this point in time? Why?

$ 2 0 0 , 0 0 0 5 1 4 8 0 0 0 5 Hal . 0 6 9 4 3 7 8 1 0 0 9 9 7 1 . 0 0 0 Candies. Inc, distributes some defective candles to its shareholders. The market walue of the candies was $ 2 0 , 0 0 0 (...

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

2 How can companies like Shell ensure that managers and key personnel are adequately prepared for international assignments?

2 Is there a relationship between country of origin of the expatriate and success or failure in an assignment (e.g. are Dutch managers more successful expatriates than British or Japanese managers)?...

3 In view of the experiences of Shell outlined above, is there really a problem with expatriate failure? How can this best be safeguarded against? How might this differ between companies such as...