Solution-What amount would john record initial investment

What amount would john record initial investment in jinxtor

Assignment Help Financial Accounting

Reference no: EM132966855

John Inc and Victor Inc. formed a joint venture on January 1, 2020. John invested plant and equipment with a book value of $500,000 and a fair value of $800,000 for a 30% interest in the venture which was to be called Jinxtor Ltd.

Victor contributed assets with a fair value of $2,000,000 (including $200,000 in cash) for its 70% stake in Jinxtor.
Jinxtor reported a net income of $3,000,000 for 2020. John's plant and equipment were estimated to provide an additional 5 years of utility to Jinxtor. The transactions set out above were considered to have commercial substance.

Problem 1.) What would be the recognizable gain on January 1, 2020 arising from John's investment in Jinxtor?

Problem 2.) At what amount would John record its initial investment in Jinxtor?

Reference no: EM132966855

Questions Cloud

Compute the inventory cost at the end of June : Angel Company provided the following data for June 30: June 1 Balance 5,000 units @ P20.00 each. Compute the inventory cost at the end of June

How many units of memory does it take to store the matrix : How many units of memory does it take to store the matrix M ? Your answer should be in terms of m and n and How many rows must L and R have respectively

How much is the gain or loss on the retirement : On January 1, 2019, XYC Company issued P6,000,000 of its 8%, 6 year bonds at P110. How much is the gain or loss on the retirement

What the net income reported by bonita industries for year : During the year the business recorded $631000 in revenues, $330000 in expenses, and dividends of $64000. The net income reported by Bonita Industries for year?

What amount would john record initial investment in jinxtor : What amount would John record initial investment in Jinxtor? John invested plant and equipment with a book value of $500,000

Show what are the accounting entries made by mother : Show what are the accounting entries made by MOTHER in relation to the different events that occurred during period X

How much extra ella can expect to spend each year : How much extra Ella can expect to spend each year (assuming end-of-year withdrawals), over and above the $30,000 from the perpetual investment

What the endevour enterprises will record acquisition cost : Endevour Enterprises acquires land for $250,000 cash. What the Endevour Enterprises will record the acquisition cost of the land

Calculate the issue price of the bill : A bank bill with 120 days to maturity is issued with a yield of 0.05% pa. Face value is $1,000,000. Calculate the issue price of the bill.

User Account

All Pages

What amount would john record initial investment in jinxtor

Reference no: EM132966855

Reference no: EM132966855

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT