On January 2, 2020, Tuao Company purchased 10% of Abulug Company’s outstanding ordinary shares for P20,000,000. Tuao is the largest single shareholder in Abulug and this gives Tuao the power to participate in the financial and operating policy decisions of the Abulug but is not control or joint control over those policies.  Abulug reported profit of P10,000,000 and paid dividend of P4,000,000.   What should be the balance in Tuao’s investment in Abulug Company at the end of 2020? Group of answer choices P20,000,000 P21,000,000 P21,400,000 P20,600,000

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 December 31, 2020, Lea Company, an entity with no subsidiary, purchased 10,000 ordinary shares of…

A: Total outstanding shares of Sun Valley = Total outstanding shares before purchase of shares by Lea…

Q: On December 31, 2020, Naengmyeon Company, an entity with no subsidiary, purchased 10,000 ordinary…

A: Carrying Value of an Investment calculated by adding the investments with proportionate return of…

Q: What is the ending balance of the investment in associate account as of December 31, 2022?

A: On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500…

Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…

A: Unrealized Gain on Investment: In accounting, an unrealized gain is a rise in the value of an asset…

Q: On July 10, 2021, Romantic Co. acquired 25,000 shares of Baboy Co. for P200,000. Romantic Co does…

A: Answer:-   As per PFRS,if investment in equity shares is measures at FVOCI,gains inlosses on…

Q: On January 2, 2022, P Company purchased the net asset of S Company by paying P500,000 cash and…

A: When a company acquires the shares of another company in order to acquire a controlling interest, it…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: Calculation of Total Cash to be shown in the Consolidated Balance Sheet Cash Balance of Pamigay Corp…

Q: On October 1, 2020, Miya owns 15,000 fair value through other comprehensive income shares acquired…

A: The amount to be recorded as dividend income in 2020 is option (d) i.e. 66000

Q: On February 28, 2022, P Corp. purchased 80% of S Co's P10 par ordinary shares for P986,000. On this…

A: Given information, Net income =P354,000 Dividends=P112,000 Inventory overvalued =P15,000 Increase in…

Q: Presented below are two independent situations: (a) Sandhill Inc. acquired 10% of the 420,000…

A: Whenever a company invests in another company and as a result, obtains significant influence in the…

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

A: Stock dividend is the dividend available to the shareholders but in the form stock. Not in the form…

Q: Company acquires 35% of the 100,000 outstanding shares of Happy Company for P1,200,000.  Happy…

A: when company acquire  certain percentage of share in another company the company share the profit…

Q: On October 15, 2020, the Skyline Company received a liquidating dividend of P100,000 from David…

A: Formula: Dividend income = Total liquidating dividend x Ownership Percentage in the company.

Q: North Land Company acquired 30,000 shares of the ordinary share of Shaver Corp. in July 2021. This…

A: As per the business combination standard in IFRS, the dividend income of the company that has…

Q: On January 1, 2020, Elite Company paid P 18,000,000 for 50,000 ordinary shares of Craze Company…

A: The total amount of investment at the end is the net value of an investment which is calculated by…

Q: market values of P20 and P2,300,000, respectively. Moreover, it agreed to pay an additional P170,000…

A: Purchase Consideration is the amount paid in consideration for the fair value of net assets in…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: Consolidated financial statements are the one which are prepared when one or two subsidiaries are…

Q: n June 1, 2020, SME A acquired 35% of the equity of entities X, Y, Z for P64,000 and P58,000 and…

A: Fair value accounting is the practice of measuring assets and liabilities at their current market…

Q: egistering and iss

A: It is given that the balance sheet information of January 2, 2021 PAMIGAY CORP.

Q: 9.On January 1, 2021, White Company acquired 25,000 shares of Black Company for P900,000.  Black has…

A:

Q: How much is the unrealized gain (loss) recognized in Bumilis 2022 profit or loss?

A: Unrealized gain or loss is the amount of gain or loss which the company has taken into account by…

Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000.  During 2019,…

A:

Q: Santo, Inc. acquired 30% of Nino Corp.'s voting stock on January 1, 2019 for P360,000.  During 2019,…

A: Remeasurement gain = Fair value - Cost of investment

Q: Presented below are two independent situations: (a) (b) Sheridan Inc. acquired 10% of the 417,000…

A: Journal entries are the transactions which are reported in the books of accounts primarily. It is…

Q: 3. On December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of…

A: the answer is 112,000 Credit. we will transfer 112,000 gain from the unrealized gain or loss to the…

Q: On January 1, 2022, Bumili Co, purchased 10,000 shares of Nabill, Inc. for P1,000,000 Commission and…

A: On January 1, 2022, Bumili Co, purchased 10,000 shares of Nabill, Inc. for P1,000,000 Commission and…

Q: what amount should Noah report as investment in Sabina?

A: IAS 28 specifies an investor is said to have significant influence over the investee if the investor…

Q: On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On…

A: Non-controlling interest is the minority interest where shareholders hold less than 50% of the…

Q: 1.)During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: 1) Holding gain should David report in equity on Dec 31, 2021 :- 1,000 ordinary shares of Goliath…

Q: On January 1, 2022, Old Corp. paid P500,000 for 20,000 shares of Hannah Corp.'s ordinary shares and…

A: Held for Trading security means a debt or equity investment that investors purchase with an…

Q: 5. On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…

A: Goodwill:- Goodwill is considered as the intangible asset that is associated with purchase of one…

Q: On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the…

A: Answer: Jan 1 2020: 15000 shares with cost of P1,400,000 Dec 31,2020: 15000 shares with fair market…

Q: On June 30, 2021, Peter, Inc. purchased the following shares at a total cost of P10,700,000…

A: The realized gain on the sale of a share is calculated by subtracting the book value of the shares…

Q: On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash. Prior to…

A: Stockholders are the Persons of entities whom the company issues its ownership rights in the form of…

Q: On December 30, 2020, Aloha Company, an entity with no subsidiary, purchased 10,000 ordinary shares…

A: Using equity method, the investment value is decreased with receipt of dividend and increased with…

Q: How much is the goodwill to be presented on the consolidated statement of financial position as of…

A: Calculation of Goodwill/ Capital Reserve to be presented on the consolidated financial statement as…

Q: 100% of the equity share capital of the Duterte Co. was acquired by the Leni Inc. on July 30, 2021.…

A: goodwill under fair value method:- Goodwill=Consideration paid/% acquired-Fair value of assets

Q: On January 1, 2020, HULK CORP. acquired 70% of outstanding ordinary shares of HALL INC. at a price…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: Consolidated cash balance as of the date of acquisition = Cash balance of both companies before…

Q: On February 28, 2022, P Corp. purchased 80% of S Co.’s P10 par ordinary shares for P986,000.  On…

A: Solution Non-controlling asset is an ownership position wherein a shareholder owns less than 50% of…

Q: On January 2, 2020, Kesha Corporation bought 10 percent of Bart Corporation's share capital for…

A: Unrealized Gain : As per PFRS (Philippine Financial Reporting Standard) 9, An investment will be…

Q: On January 1, 2018, WONG NOODLES Corporation acquired the net assets of Natasha, Inc., by issuing…

A: The amount of assets remaining after all liabilities have been paid is referred to as stockholders'…

Q: On January 1, 2021 ABC purchased 80% of the outstanding shares of DEF at a cost of $960,000. On that…

A: Non-controlling interest is the interest in the subsidiary entity of an entity other than the parent…

Q: n January 2, 2020. Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…

A: Solution: As Tuao company is having significant influence over Abulug company, therefore equity…

Q: On October 1,2021, Venus Corp owns 15,000 fair value through other comprehensive income share…

A: Dividend is considered as the benefit that an investor receives from investments. The dividend of a…

Q: CFAS Company had the following shareholders' equity on January 1, 2022: Preference share capital,…

A: Note: As per our guidelines, only the first three subparts will be answered.   1. Amount charged to…

Q: On December 31, 2020, Naengmyeon Company, an entity with no subsidiary. purchased 10,000 ordinary…

A: A share is a financial security which can be purchased for the investment purpose in a company. An…

Q: On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share…

A: As per IAS 39, Financial instruments recognition and measurement,  Their is an irrevocable…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: 1. Cash to be presented on the consolidated statement of financial position as of the date of…

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.