Question
45. Carla Vista Company owns 30000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2021, Taylor earns $1340000 and pays cash dividends
45. Carla Vista Company owns 30000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2021, Taylor earns $1340000 and pays cash dividends of $1065000. If the beginning balance in the investment account was $820000, the balance at December 31, 2021 should be
a. $985000.
b. $1624000.
c. $1095000.
d. $820000.
50. On June 1, 2021, Oriole & Sons sold equipment to James Landscaping Service in exchange for a zero-interest bearing note with a face value of $112800, with payment due in 12 months. The fair value of the equipment on the date of sale was $97200. The amount of revenue to be recognized on this transaction in 2021 is
a. $112800.
b. $97200 sales revenue and $9100 interest revenue.
c. $97200.
d. $15600.
56. Ivanhoe Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $900000 each quarter. The total contract price is $17898000 and Ivanhoe estimates total costs of $18100000. Ivanhoe estimates that the building will take 3 years to complete, and commences construction on January 2, 2021. At December 31, 2021, Ivanhoe estimates that it is 30% complete with the construction, based on costs incurred. At December 31, 2022, Ivanhoe Construction estimates that it is 70% complete with the building; however, the estimate of total costs to be incurred has risen to $18300000 due to unanticipated price increases. What is the total amount of Construction Expenses that Ivanhoe will recognize for the year ended December 31, 2022?
a. $7440600
b. $7300600
c. $7380000
d. $12810000
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