The identifiable assets and liabilities approximated their fair values except for inventories with carrying amount of P144,000 and fair value of P96,000 and building with carrying value amount of P240,000 and fair value of P250,000. The building has a remaining useful life of 8 years. > DDD Corp's retained earnings was P48,000 Non-controlling interest is measured at a fair value of P240,000 ummary of the individual financial information of the entities on December 31, 2021 is shown below: DDD Corp. АВС Со.
Q: n January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The…
A: Depreciation represents the reduction in the value of the long-term asset of the company over a…
Q: 1. On January 1, 20X7, Sword reported net assets with a book value of $132,000. A total of $21,000…
A: Consolidation Statement In the consolidation statement the parent company acquired the subsidiary…
Q: 10% share dividend on December 31, 2021. The entity elected to use the equity method in accounting…
A: Equity method is an accounting technique used by a company to record the profits made by its…
Q: The Season Co. acquired a 70% interest in the Aloha Inc. for P1,960,000 when the fair value of Aloha…
A: As company choosed to apply net identificable assets/proportionate method
Q: As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current…
A: Consolidation: A process where the assets of two business entities get aggregated by merger and…
Q: Jam Ltd acquired all the equity in Cab Ltd on 31 December 20X4 for $370 000. At the control date,…
A: The intercompany sales are to be given effect for the unrealized profit. The intercompany purchase…
Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.1…
A: Goodwill is determined as an excess of the cost of a company acquired over the fair value of its net…
Q: Leni Co. acquired all of BBM Co's assets and liabilities on October 2, 2021. BBM reported assets…
A:
Q: On January 1, 20x1, ALLEVIATE Co. acquired 30,000 ordinary shares representing 30% interest in…
A: Introduction: If investor acquires between 20 to 50% of ordinary shares of the investee company, it…
Q: $125,000. The book values and fair values of except for buildings and equipment, which were worth…
A: Elimination entries are defined as those entries that re recorded to present the account balances of…
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Cost of acquisition is the cost at which one business firm or any individual acquires another…
Q: ABC Corp. had the following data ascertained before liquidation: Total book valueof the assets were…
A: Estimated loss on Assets Here to calculate the estimated loss while comparing with the book value…
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Cost of acquisition means total expenses incurred by entity to purchase new entity or assets. Here…
Q: ABC Company acquired all of XYZ Corporation's assets and liabilities on June 30, 20X1. XYZ reported…
A: An asset is an expense that will be helpful in future accounting periods. If an expenditure does not…
Q: Abbot Corporation reported a net operating loss of $450,000 in 20X3, which the corporation elected…
A: The correct option is option “A”.
Q: Acquirer Limited purchased 75 per cent of Subby Limited for $45 000. The fair value of identifiable…
A: Goodwill is allocated to non-controlling interest in the proportion of the shareholding retained by…
Q: On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The…
A: Depreciation is the decrease in the book value of the tangible asset which gives benefit for more…
Q: he inventories of SS Corp. and PP Corp. has a fair value of P400,000 and P550,000 , respectively.…
A: Step 1 Consolidated Equity means, an amount equal to the aggregate book value of the assets of the…
Q: Deer Inc. is a Canadian Corporation and has a fiscal year end of December 31. The corporation…
A: Deer Inc. is a Canadian corporation and has fiscal year end 31.12. On 01.02.2021, All shares of Deer…
Q: The Lampard Company acquired a 70% interest in The Ohau Company for P1,960,000 when the fair value…
A: Goodwill = Purchase Consideration + Fair Value of NCI - Net Identifiable Assets =…
Q: of P112,000,000. At the acquisition date, the carrying amount of Manila Pen's net assets was…
A: As fair value is given, goodwill under fair value method:-Goodwill=Consideration paid/%…
Q: When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the…
A: Formula: percentage of their claims are the unsecured creditors = Total value of Free Assets /…
Q: ABC Corp. had the following data ascertained before liquidation: Total book valueof the assets were…
A: Net free assets is the assets free for distribution to unsecured creditors after distribution to the…
Q: On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The…
A: Depreciation represents the reduction in the value of the long-term asset of the company over a…
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Cost of acquisition means total expenses incurred by entity to purchase other entity or assets.
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Fair value of net identifiable assets = P133,000 + P900,000 - P10,000 = P1,023,000
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Cost of acquisition is a concept that includes all the costs at the time of purchase. It is net…
Q: Pro-tech Software acquired all of the outstanding stock of Reliable Software for $14 million. The…
A: The goodwill is the amount paid for the good image of the acquired business. The amount of goodwill…
Q: On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The…
A: Depreciation expense is associated with the fall in the value of an asset periodically because of…
Q: On January 2, 2021, ABC Co. acquired 60% interest in DDD Corp. for P360,000. Information on DDD…
A: At the time of acquisition identified assets and liabilities are recorded in the books of the parent…
Q: On January 2, 2021, ABC Co. acquired 60% interest in DDD Corp. for P360,000. Information on DDD…
A: The merger is a process in which the acquirer company obtains control over the acquiree company.…
Q: January
A: book value of machine sold = P230,000 Cost of machinery = P560,000 no. of useful life = 5 year…
Q: When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the…
A: Liquidation means where the company decide to close out the operations , sell all the assets and…
Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45…
A: Goodwill:Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company…
Q: When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the…
A: In case of liquidation, all the amount realised from the sale of assets would be first utilised for…
Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…
A: Cost of acquisition is the total cost incurred (including transaction cost) by a company to overtake…
Q: On Jan 1, 20X1, Ouyang Inc paid $1,000,000 to acquire 70% of Huang Inc when Huang's BV was $500,000.…
A: Intangible assets are the assets owed by firm which can’t be seen and touched. It includes patent,…
Q: What is the amount of consolidated comprehensive income reported for 20x9? What is the amount of…
A:
Q: SFFN Corp. purchased the entire business of AZC, Inc. including all its assets and liabilities for…
A: goodwill to be recognized by SFFN as a result of its acquisition of AZC = purchase consideration…
Q: ABC Company acquired all of XYZ Corporation's assets and liabilities on June 30, 20X1. XYZ reported…
A: Book value and fair value Book value is based on the original old purchase price where annual…
Q: On January 1, 2021, A Company acquired a 50% interest in B for P60,000,000. A Company already held…
A: Goodwill is the intangible asset which indicates the market value or good worth of the company in…
Q: On July 1 2021, Sunflower Ltd acquired 60% of share capital of Lilly Ltd for $60,000,000. Equity of…
A: In consolidation, the assets of the subsidiary company are carried by the parent company on their…
Q: On January 1, 20x8, Bristol Company acquired 80 percent of Animation Company's common stock for…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: MEME Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000. On that date, the…
A: Dividend is the part or share of profits which is divided among the shareholders of the company. For…
Q: Matrix, Inc. acquired 25% of Neo Enterprises for $2,000,000 on January 1, 2014. The fair value and…
A: 1.
Q: On January 1, 2016, B Company acquired 80% of A Company’s common stock for P280,000 cash. At that…
A: It is more expanded view of income than the conventional net income. It includes all changes in…
Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: INSOLVENT Corp. had the following data ascertained before liquidation: Total book value of the…
A: In liquidation we always come accross with situations in which the…
Q: On January 1, 20x1, Rooster Co. acquired 75% interest in Cockerel Co. for P600,000. At this time,…
A: The portion of the period's consolidated profit or loss that is attributable to the parent, net of…
How much is the consolidated profit?
Step by step
Solved in 2 steps
- On January 2, 2021, Harry Co. acquired 60% interest in Louis Corp. for P360,000. Information on Louis Corp's financial position on acquisition date follows: The identifiable assets and liabilities approximated their fair values except for inventories with carrying amount of P144,000 and fair value of P96,000 and building with carrying value amount of P240,000 and fair value of P250,000. The building has a remaining useful life of 8 years. Louis's retained earnings was P48,000 Non-controlling interest is measured at a fair value of P240,000 A summary of the individual financial information of the entities on December 31, 2021 is shown below: Louis Co. Harry Co. Total Assets 550,000 1,550,000 Total Liabilities 132,000 34,000 Share Capital 300,000 1,200,000 Retained Earnings 118,000 316,000 Sales 350,000 700,000 Cost of Sales 80,000 200,000 Other Operating Expenses 200,000 400,000 How much is the consolidated total assets?On January 2, 2021, Harry Co. acquired 60% interest in Louis Corp. for P360,000. Information on Louis Corp's financial position on acquisition date follows: The identifiable assets and liabilities approximated their fair values except for inventories with carrying amount of P144,000 and fair value of P96,000 and building with carrying value amount of P240,000 and fair value of P250,000. The building has a remaining useful life of 8 years. Louis's retained earnings was P48,000 Non-controlling interest is measured at a fair value of P240,000 A summary of the individual financial information of the entities on December 31, 2021 is shown below: Louis Co. Harry Co. Total Assets 550,000 1,550,000 Total Liabilities 132,000 34,000 Share Capital 300,000 1,200,000 Retained Earnings 118,000 316,000 Sales 350,000 700,000 Cost of Sales 80,000 200,000 Other Operating Expenses 200,000 400,000 How much is the consolidated profit?On January 1, 2025, Lili Company acquired the identifiable net assets of Jen Inc. On this date, the identifiable assets acquired and liabilities assumed have fair values of P 7,680,000 and P4,320,000 respectively. Lili Co. incurred the following acquisition related costs: legal fees, P48,000; due diligence costs, P48,000; and general and administrative costs of maintaining an internal acquisition, P96,000. As consideration, Lili Co. transferred 9,600 of its own shares with par value and fair value per share of P400 and P500 respectively, too Jen's former owners. Costs of registering the shares (previously issued and newly issued) amounted to P192,000 (P24,000 pertains to listing fees of previously issued shares). How much is the total amount charged to profit or loss in relation to the transaction above?
- On January 1, 2023, Novak Corporation, a public company following IFRS, acquired 15,900 of the 53,000 outstanding common shares of Noah Corp. for $22 per share. Noah's statement of financial position reported the following information at the date of the acquisition: Assets not subject to depreciation $289,800 Assets subject to depreciation 860,100 Liabilities 150,100 Additional information: 1. On the acquisition date, the fair value is the same as the carrying amount for the assets that are not subject to depreciation and for the liabilities. 2. 3. 4. On the acquisition date, the fair value of the assets that are subject to depreciation is $964,100. These assets had a remaining useful life of eight years at that time. Noah reported 2023 net income of $104,000 and paid dividends of $5,000 in December 2023. Noah's shares are not actively traded on the stock exchange, but Novak has determined that they have a fair value of $21 per share on December 31, 2023. (a) Your answer is partially…On January 1, 2023, Flounder Corporation, a public company following IFRS, acquired 17,400 of the 58,000 outstanding common shares of Noah Corp. for $27 per share. Noah's statement of financial position reported the following information at the date of the acquisition: Assets not subject to depreciation $287,800 Assets subject to depreciation 863,600 Liabilities 148,600 Additional information: 1. On the acquisition date, the fair value is the same as the carrying amount for the assets that are not subject to depreciation and for the liabilities. 2. 3. 4. On the acquisition date, the fair value of the assets that are subject to depreciation is $957,600. These assets had a remaining useful life of eight years at that time. Noah reported 2023 net income of $94,000 and paid dividends of $4,500 in December 2023. Noah's shares are not actively traded on the stock exchange, but Flounder has determined that they have a fair value of $25 per share on December 31, 2023. (a) Prepare the journal…Shak Company acquired a financial instrument for P4,000,000 on March 31, 2020. The financial instrument is classified as financial asset at fair value through other comprehensive income. The direct acquisition cost incurred amounted to P700,000. On December 31, 2020, the fair value of the instrument was P5,500,000 and the transaction costs that would be incurred on the sale of the investment are estimated at P600,000. What gain should be recognized in statement of financial position for the year ended December 31, 20207 Select the correct response 900,000 200,000 800,000
- On January 1, 2021, Parent Co. acquired the identifiable net asset of Subsidiary, Inc.. On this date, the identifiable net assets acquired and liabilities assumed have fair values of P7,680,000 and P4,320,000, respectively. Parent Co. incurred the following acquisition-related costs: legal fees, P48,000, due diligence costs, P480,000; and general and administrative costs of maintaining an internal acquisition, P96,000. As consideration, Parent Co. transferred 9,600 of its own shares with par value and fair value per share of P400 and P500, respectively, to Subsidiary’s former owners. Costs of registering the shares (previously issued and newly issued) amounted to P192,000 (P24,000 pertains to listing fees of previously issued shares). How much is the total amount charged to profit or loss in relation to this transaction?September 1, 2020, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At the time of purchase, Aumont's balance sheet showed assets of $620,000, liabilities of $200,000, and owners' equity of $420,000. The fair value of Aumont's assets is estimated to be $800,000. Compute the amount of goodwill recorded by Winans in the acquisition.On January 3, 2020, Novak Limited purchased 3,500 (35%) of the common shares of Sonja Corp. for $468,900. The following information is provided about the identifiable assets and liabilities of Sonja at the date of acquisition: Carrying Amount Fair Value Assets not subject to depreciation $516,000 $516,000 Assets subject to depreciation (10 years remaining) 806,000 866,000 Total identifiable assets 1,322,000 1,382,000 Liabilities 108,000 108,000 During 2020, Sonja reported the following information on its statement of comprehensive income: Income before discontinued operations $208,000 Discontinued operations (net of tax) (71,900) Net income and comprehensive income 136,100 Dividends declared and paid by Sonja November 15, 2020 124,000 Assume that the 35% interest is enough to make Sonja an associate of Novak, and that Novak is required to apply IFRS for its financial reporting. The fair…
- Kirson Holdings Ltd. purchased the net assets of Baker Ltd. in January 2020 for $6,082,000. Kirson had appraisals conducted that indicated that the fair values of the assets purchased and liabilities assumed were as follows: Inventory $1,220,000 Patents $517,000 Accounts receivable 722,000 Accounts payable 595,000 Equipment 2,199,000 Bank loan payable 932,000 The patent acquired has 18 years remaining in its useful life. Kirson's management determined that it would contribute to the generation of revenues for five years, after which it would be obsolete. Determine the amount of goodwill Kirson acquired in the purchase. $4 Goodwill eTextbook and Media List of AccountsOn 1 July 2022, Dean Ltd acquired the remaining 80% of the issued shares of Lewis Ltd for shares in Dean Ltd with a fair value of $1 000 000. At that date, the financial statements of Lewis Ltd showed the following information. All the assets and liabilities of Lewis Ltd were recorded at amounts equal to their fair values at the acquisition date, except some equipment recorded at $50 000 below its fair value with a related accumulated depreciation of $80 000. Assume the equipment has not been revalued in the subsidiaries accounts. Also, Dean Ltd identified at acquisition date a contingent liability related to a lawsuit where Lewis Ltd was sued by a former supplier and attached a fair value of $40 000 to that liability. The previous held interest by Dean Ltd in Lewis Ltd (ie 20% of the issued shares) was recognised by in Dean Ltd.’s accounts at the fair value at acquisition date of $250 000. Dean Ltd incurred $15 000 in acquisition related costs including $10 000 in share issue costs.…On June 30, 2021, Plaster, Inc., paid $988,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $247,000. At acquisition date, Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable (Parentheses indicate credit balances.) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: $ 64,500 136,900 Equipment (3-year remaining life) Database (10-year remaining life) Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Database 219, 200 70,400 189,400 324,300 (37,700) At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available: Plaster, Inc. December 31, 2020 Total assets Accounts payable Long-term liabilities Common stock Noncontrolling interest…