The Tornado Truck Body Company decides to repurchase 10,000 shares of its common stock on January 20.  The stock has $1 par value, and the market value per share of common stock on January 20 is $8.75.  The company decides to sell 5,000 of the treasury stock shares on April 30 for $9.00 per share.  What is the amount of the gain recognized as a result of the transaction? Group of answer choices A)$40,000 b)$0 c)$45,000 d)$1,250 e)None of the above

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Purchased price of share (40,000 Share * P100) P40,00,000 Add: Brokerage fees P1,20,000 Initial…

Q: 5. On June 1, 2020, Ping Corp. purchased 10,000 of Pong’s 50,000 outstanding shares at a price of…

A: solution given Date of purchase of share June 1 2020 Number of total share of pong 50000…

Q: On July 1, 2014, Mac Corporation, a new corporation, issued 20,000 shares of its common stock to…

A: The company may issue shares for cash or against non-cash assets. In case of non-cash assets…

Q: Travis Co. decided set up a corporation issuing 5000 shares of P20 par ordinary stocks trading at…

A: Equipment value = No. of shares issued x stocks trading per share = 5000 share  x P25 per share =…

Q: On November 17, Tasty Foods purchased 1,000 shares (10%) of Eco-Safe Packaging's voting stock for…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On April 1, 2025, Promise Company purchased 150,000 common shares in Delta Co. for $7 per share. The…

A: Promise Company has 150,000 shares that are for sale. Shares that are held for sale are adjusted for…

Q: A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500…

A: Revenue is the total amount realized from selling the said number of shares. Shares are the…

Q: 1. On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for…

A: It is pertinent to note that for non-monetary assets that are acquired through the issue of shares…

Q: Berry’s Concrete acquired 25% of the outstanding common stock of Blakeley, Inc. on January 1, 2010,…

A: Under the cost method of investment, the investment is reported in the balance sheet at the…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution: Cost of the investment = Purchase cost + brokerage - dividend  = 40000*100 + 120000 -…

Q: ZIP Company owns 40,000 shares of the common stock of PIK Company. ZIP decided to divest itself of…

A: Please find the answer to the above questions below:

Q: On November 1, 2020, Fashion Supplies, Inc. purchased 2,000 shares of Everyday Couture, Inc. for…

A: Residual Income:- It is a method to calculate the valuation which formally accounts for the cost of…

Q: 31. The comp

A: FV-NI i.e Fair value through net income, under this approach any changes in the fair value of…

Q: help!

A: Treasury stock: The shares of a corporation that are bought back from the shareholders for cash but…

Q: Wilbourne Corporation issues $250,000 of 10% preferred stock to investors who pay cash for the…

A: Preferred stock is a that type of financial instrument  whose holders get dividend before the…

Q: Gannon company acquired 20,000 shares of its own common stock at $20 per share on February 5, 2020…

A: The shares  wer acquired  at a cost of  $20per share, hence at the time of sale. Treasury  stockmust…

Q: On January 1, 2020, Keith Company paid $96,000 for 8,000 shares of Jerry Company common stock. The…

A: What amount will be reported in the balance sheet of Keith Company for the investment in Jerry…

Q: On January 2, 2012, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: As per IFRS 9, Financial instruments, the financial assets classified as fair value through other…

Q: Choose the correct. Arcola, Inc., acquires all 40,000 shares of Tuscola Company for $725,000. A year…

A: Answer:   Option c.

Q: On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land.…

A: Solution: Fair value of shares issued in exchange of land = 20000*P300 = P6,000,000 Par value of…

Q: On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land.…

A: The shares are exchanged for their appraised value.

Q: On January 1, 2021, Nana Company paid $100,000 for 7,000 shares of Papa Company common stock. The…

A: Securities which are held for trading purpose are reported at fair value. Any gain or loss which is…

Q: For the next (2) two questions: STU Company purchased 10,000 shares representing 2% ownership of…

A: The income statement of a company represents the outcome of the operations of the business in terms…

Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…

A: Here we can see that ping corporation has purchased 10,000 shares out of 50,000 shares.  Therefore…

Q: ndy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted…

A: Journal: Journal is considered as a book of original entry because all the transactions that have…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: It is pertinent to note that transaction costs incurred for equity instruments designated at fair…

Q: Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is…

A: Answer: If she opted to receive cash instead of share dividend, then she will receive deividend @…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution:Total cost of investment = Purchase cost + Brokerage fee - dividend= 40000*100 + 120000 -…

Q: On January 1, Year 1, Sterling Corporation issued stock options for 260,000 shares to its CEO. The…

A: Total estimated compensation = Number of shares ( stock option ) * Estimated Fair Value

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine Inc. stock at P100 per…

A: Introduction:- Calculation of total cost of investment as follows:- Total cost of investment =…

Q: Satchel Inc. purchases 10,000 shares of its own previouslyissued $10 par common stock for $290,000.…

A: Purchase of Satchel Inc's own stock decreases the cash account and increases  the treasury stock…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Cost of Shares purchased : = 40000 shares * P100 per share  = 4000000   Brokerage Fees : 120000…

Q: 1. A company received 3,000, P10 par ordinary shares from one of its shareholders. In the same year…

A: Donated capital refers to the assets provided to the entity as the gift, this amount is reported at…

Q: Mimi Corporation started business in 2007 by issuing 200,000 shares of P20 par common stock for P36…

A: Amount of paid-in capital from treasury stock = ( Market Price - Purchase Price ) x Number of shares

Q: Anthem Inc. issues 200,000 shares of stock with a par value of $0.11 for $160 per share. Three years…

A: Stocks of a company are the financial instruments which are issued to raise fund for the company. In…

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…

A: As requested, I have typed the calculations for your convenience.The company sold 4 million of…

Q: ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares…

A: Legal capital is the par value of common stock and preferred stock that the business had sold or…

Q: On January 4, 2018, Watts Co. purchased 40,000 shares (40%) of the common stock of Adams Corp.,…

A: The calculation of investment value per share has been made as follows:

Q: For the next (2) two questions: STU Company purchased 10,000 shares representing 2% ownership of…

A: The journal entries can be defined as the base of accounting because the business transaction is…

Q: Oriole Cosmetics acquired 10% of the 191,000 shares of common stock of Martinez Fashion at a total…

A: The journal entries are prepared to record daily transactions of the business.

Q: ravis Co. decided set up a corporation issuing 5000 shares of P20 par ordinary stocks trading at P25…

A: Solution:  depreciation on the first year = (fair value - salvage value) / useful life = (150000 -…

Q: 16. During Year One, Hancock Corporation buys 2,000 shares of Waltz Inc. for P34 per share. Hancock…

A: Investment shall be valued at cost or market price whichever is lower.

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.