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Mumz [18]
3 years ago
12

Autumnâ Services, Inc. acquired 124 comma 000 shares of Springâ Metals, Inc. on Januaryâ 1, 2018. Spring declares a cash dividen

d of $ 0.75 per share on Februaryâ 15, 2019 and pays the cash dividend on Marchâ 2, 2019. With the currentâ investment, Autumnâ Services, Inc. holds 12â% ofâ Spring's voting stock.
Prepare journal entry for the day when the dividend payment is madeâ (March 2,â 2019).
Business
1 answer:
Delicious77 [7]3 years ago
7 0

Answer:

Shareholders for dividends $93,000 (debit)

Cash $93,000 (credit)

Explanation:

Autumnâ Services, Inc holds a 12 % voting stock in  Springâ Metals therefore it does not have control in terms of IFRS 10 and no consolidated statements must be produced.

The Acquisition of shares is thus a Financial Asset for Autumnâ Services, Inc.

February 15, 2019

<em>When dividend is declared, recognize an equity item  and a Liability in Spring Metals</em>

Dividend $93,000 (debit)

Shareholders for dividends $93,000 (credit)

Dividend = 124,000×$ 0.75 per share

               = $93,000

March 2, 2019

<em>De-recognise the liability and de-recognise the cash asset in Spring Metals</em>

Shareholders for dividends $93,000 (debit)

Cash $93,000 (credit)

<em />

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The Johnson Family is looking to buy a new house on Belmont Road. Their insurance deductible is increased by $500 if they live m
user100 [1]

Answer:

a) Absolute Value Inequality => Absolute(0 + y) < 2

b) -2 < y < 2

Which means, Johnson Family has to live within the range of -2 to +2 from the fire department. Otherwise, they will have to pay 500 USD as increased deductible.

Explanation:

<u><em>Johnson Family has to live within the range of -2 to +2 from the fire department. </em></u>

<em>a) Absolute Value Equation:</em>

Absolute(0 + y) < 2

where y represent the location of the new house and 0 represents the location of the fire department.

Furthermore,

<em>Absolute(0 + y) < 2 = (0 + x) < 2 when (0 + y) is +ve. </em>

and

<em>Absolute(0+y) <2 =  -(0 + x) < 2 when (0 + y) is -ve. </em>

b) When (0 + y) is +ve,

we have,  (0 + y) < 2.

<em>Solving for y and subtracting 0 from both sides. </em>

0-0 + y < 2 - 0

<em>y < 2</em>

and when (0 + y) is -ve,

<em>we have, - (0 + y) < 2. </em>

Solving for y:

- 0 - y < 2

multiplying negative from both sides

<em>y > - 2</em>

<em>So, we have -2 < y < 2 </em>

<em>Johnson Family has to live within the range of -2 to +2 from the fire department. Otherwise, they will have to pay 500 USD as increased deductible. </em>

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3 years ago
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AnnZ [28]
Answer:
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What important technology has done the most
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Martin transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation
katrin [286]

Answer:

$40,000

Explanation:

We can calculate recognized gain on the transfer and basis for his stock just by deducting adjusted basis value from liability on the transfered real estate.

Calcuation

iability on the transfered real estate        $300,000

less: adjusted basis value                       ($260,000)

Gain recognized                                        $40,000

3 0
3 years ago
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Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 201
sp2606 [1]

Answer: $4,000 is ordinary income. No Capital gain

Explanation:

In 2017 and 2018, total Section 1231 losses are:

= 3,300 + 3,100

= $6,400

The Section 1231 gain in 2019 falls below the combined losses from the previous years of 2017 and 2018 so will not be counted as a capital gain as those losses are not yet being recaptured.

The entire $4,000 is therefore ordinary income.

7 0
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