What is Victors portion of any unrealized gain or loss

Assignment Help Financial Accounting
Reference no: EM132764509

Question - 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.

What is Victor's portion of any unrealized gain or loss arising from the transfer of John's assets to Jinxtor on January 1, 2020?

a. $210,000

b. $300,000

c. $90,000

d. Nil

Reference no: EM132764509

Questions Cloud

How much does Sandy make per hour : Sandy works at Macy's. She earned $378.40 and worked 46 hours. Her job pays time-and-a-half for overtime. How much does Sandy make per hour
What is a capital lease : What is a capital lease and how does the application of capital lease accounting provide insight into a company financial health
Biggest challenges facing humanity and society : Discuss how materials engineering contributes in offering solutions to some of the biggest challenges facing humanity and society, namely, energy and transport;
Complete journal entries to update depreciation : Complete journal entries to update depreciation (since end the of last accounting period) to date of sale. The accounting period is one year
What is Victors portion of any unrealized gain or loss : What is Victor's portion of any unrealized gain or loss arising from the transfer of John's assets to Jinxtor on January 1, 2020
What adjustment should be made to income tax expense : When preparing the consolidated income statement for 2021, what adjustment should be made to income tax expense
How materials engineering contributes in offering solutions : Discuss how materials engineering contributes in offering solutions to some of the biggest challenges facing humanity and society, namely, energy and transport
How many weeks would give : How many weeks you would give her. What other information would be helpful for you to know to make your recommendation?
Find gsw cash outflows to inventory suppliers totaled : During the year, its Inventory account decreased by $40 million and its accounts payable. What GSW's cash outflows to inventory suppliers totaled

Reviews

Write a Review

Financial Accounting Questions & Answers

  Illustrate what is vanessa tax basis in cook inc

The land was encumbered by a $30,000 mortgage executed two years before. Illustrate what is Vanessa's tax basis in Cook, Inc. after formation?

  Retained earnings account reflects the account balance

The balance in the retained earnings account reflects the account balance before temporary accounts are closed. In addition the notes payable balance includes notes payable of 20,500 due within the next year and 87500 of notes payable that are not du..

  Compute the olds net tax payable for 2014

Compute the Olds' net tax payable (or refund due) for 2014.-  If you use tax forms for your solution, you will need Form 1040 and Schedules A and B.

  Find the loan outstanding after making twenty payments

Find the loan outstanding after making 20 payments. Find the value of the mortgage on their house? Find the value of the monthly payment?

  Determine the current value of the bond

Determine the current value of the bond if present market conditions justify a 14 percent required rate of return - What is the value of each of these bonds

  Compute return of equity

Compute Return of Equity (ROE) for the years reported for each company. Compute return on Net Operating Assets (RNOA) and Its two components

  Prepare master budget for first four months of operations

Morganton Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations: The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and Septe..

  Explain what does mean to have a bull or bearish market

Discuss, When referring to stocks and markets, how are companies publicly traded.? What does it mean to have a bull or bearish market? Explain in detail.

  Prepare journal entries to record merchandising transactions

Prepare journal entries to record the above merchandising transactions of Sheng Company, which applies the perpetual inventory system.

  Discuss whether jonni is behaving in professional manner

At the end of the current month, Jonni Rembert prepared a trail balance for star Rescue Service. The credit side of the trail balance exceeds the debit side by a significant amount. Jonni has decided to add the difference to the balance of the miscel..

  What is the intrinsic value of equity

Immediately prior to the repurchase, what is the intrinsic value of equity? Bayani Bakery's most recent FCF was $45 million; the FCF is expected to grow

  How to compute the variances for raw materials

How to Compute the variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd