At December 31, 2027, Swift Current Inc. has the following p…
At December 31, 2027, Swift Current Inc. has the following portfolio of common shares in which it does not have significant influence: Cost Fair Value Apple Corp. $100,000 $120,000 Chester Inc. 200,000 205,000 Dooley Ltd. 300,000 500,000 $600,000 $825,000 Assuming Swift Current uses the fair value through other comprehensive income (FV-OCI) model to account for this portfolio of investments, the most informative entry to record the year-end adjustment is
Read DetailsPapaya Inc. has 100,000 common shares outstanding and has a…
Papaya Inc. has 100,000 common shares outstanding and has a policy of paying a $1.30 annual per share dividend. Papaya has an income tax rate of 35%, and its retained earnings statement for 2026 reported a closing balance of $1,452,000. Assuming an opening retained earnings balance of zero, dividend payments according to its usual policy, and no other adjustments, Papaya’s 2026 net income was
Read DetailsMagenta Inc. sells art supplies to students and enters into…
Magenta Inc. sells art supplies to students and enters into a contract to sell 150 art easels to a local college for a total of $15,000 over the next 10 months, or the regular academic year. Fifteen easels are delivered monthly. At month five of the existing contract the college also orders 100 pastel boxes at $35 each to be delivered immediately. Which of the following statements regarding the contract with the college is correct?
Read Details