What would be gain or loss from sale on January

Assignment Help Accounting Basics
Reference no: EM132597464

Question - On January 1, Year 4, X Inc. purchased 22% of the voting shares of Y Inc. for $100,000, such that significant influence is assumed to exist. The net income and paid dividends for Y for the following two years are as follows:

Net Income Dividends

Year 4 $50,000 $20,000

Year 5 $70,000 $80,000

On January 31, Year 6, X sells all of its shares of Y Inc. for $125,000 cash. Please assume that Y Inc. reports a net loss of $10,000 for January, Year 6.

(1) What would be gain or loss from sale on January 31, Year 6, assuming that the shares are reported at cost under ASPE?

(2) What would be gain or loss from sale on January 31, Year 6, assuming that the shares are reported using the equity method under IFRS?

Reference no: EM132597464

Questions Cloud

Find how much will credit to capital : How much will you credit to Capital? Describe your next steps as the accountant For Rover's Sake once you have calculated the amount to credit to Capital.
Discuss the various options for properly positioning : Discuss the various options for properly positioning an internal audit function within an organization and the related advantages and disadvantages
Texas legislature to assemble and make laws : The Texas Constitution strictly limits the amount of time allowed for the Texas Legislature to assemble and make laws.
Research support the notion that criminal profiling : Does current research support the notion that criminal profiling is an art or that it is a science?
What would be gain or loss from sale on January : What would be gain or loss from sale on January 31, Year 6, assuming that the shares are reported using the equity method under IFRS
How much debt the company can handle : Describe how the gross sales you calculated would be useful in determining how much debt the company can handle and stay profitable.
Describe the phases of the digital forensics : Digital forensics is often summarized in four phases (e.g. collection, preservation, analysis and reporting). We have learned this already.
Determine the retained earnings amount to be reported : Determine the retained earnings amount to be reported for the statement of financial position at December 31, Year 10
Calculate the planned and gradual annual depreciation : Calculate the planned and gradual annual depreciation. Describe your calculation process and whether the depreciation would be used in forecasting.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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