When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: P 80,000 Current Assets (net realizable value, P50,000) Land and Building (fair value, P240,000) Goodwill (fair value, 0) 200,000 40,000 Total Assets P320,000 Accounts Payable P160,000 200,000 Mortgage Payable (secured by land & building) Ordinary share Accumulated profits Total Liabilities and Equity 100,000 (140,000) P320,000 What percentage of their claims are the unsecured creditors likely to get?

When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: P 80,000 Current Assets (net realizable value, P50,000) Land and Building (fair value, P240,000) Goodwill (fair value, 0) 200,000 40,000 Total Assets P320,000 Accounts Payable P160,000 200,000 Mortgage Payable (secured by land & building) Ordinary share Accumulated profits Total Liabilities and Equity 100,000 (140,000) P320,000 What percentage of their claims are the unsecured creditors likely to get?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8RE

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When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: Current Assets (net realizable value, P50,000) Land and Building (fair value, P240,000) Goodwill (fair value, 0) Total Assets Accounts Payable Mortgage Payable (secured by land & building) Ordinary share Accumulated profits Total Liabilities and Equity b. 56.25% c. 50.00% P 80,000 200,000 d. 43.75% 40,000 P320,000 P160,000 200,000 100,000 What percentage of their claims are the unsecured creditors likely to get? a. 100% (140,000) P320,000
present in good accounting form When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: Current Assets (net realizable value, P50,000) P 80,000 Land and Building (fair value, P240,000) 200,000 Goodwill (fair value, 0) 40,000 Total Assets P320,000 Accounts Payable P160,000 Mortgage Payable (secured by land & building) 200,000 Ordinary share 100,000 Accumulated profits (140,000) Total Liabilities and Equity P320,000 What percentage of their claims are the unsecured creditors…
SPK NOW Company owned the following investments at year-end before fair value adjustments and amortization: FA@FVTPL, P 600,000; FA@FVTOCI, P350,000; FA@AC, P470,000. What total amount of noncurrent assets related to the investments should be reported at year-end? a.P950,000 b.P1,420,000 c. P470,000 d. P820,000
An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amou before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets is
An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The balance of revaluation surplus as of 30 June 2020 after classification of the assets as held for sale is
An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets is
Background: On December 31, 2021, Company A purchased acquired various assets from Company B as follows:and assumed liabilities does not meet the definition of a business under ASC 805.UmbrellaTableLemon squeezerThe books and records of Company B value these assets at December 31, 2021 as followsUmbrella $100Table $50Lemon squeezer $150Company B determined the fair value for these assets on January 1, 2022 to be as follows:Umbrella $80Table $20Lemon squeezer $100On December 31, 2021, Company A paid $350 for these assets. Question How should the acquired asset be valued and reflected on Company A's books on January 1, 2022? US GAAP standards used: ASC_____,EY FRD Business Combinations, p. Methodology applied: Calculation: Findings: Conclusion:
The following information was taken from the statement of realization and liquidation of Jury and John Bombastix Co. which is undergoing liquidation: ASSETS: 8,000,000 60,000 4,720,000 880,000 Assets to be realized Assets acquired Assets realized Assets not realized LIABILITIES: Liabilities liquidated Liabilities not liquidated Liabilities to be liquidated 8,520,000 4,760,000 11,480,000 128,000 Liabilities assumed SUPPLEMENTARY ITEMS: Supplementary expenses Supplementary income 100,000 72,000 How much is the net gain (loss) for the period?
Pitch Co. is undergoing liquidation. Infórmation on Pitch Co.. assets and liabilities is shown below: Вook value Realizable value ASSETS 1,000,000 500,000 1,300,000 Assets pledged to fully secured creditors Assets pledged to partially secured creditors 300,000 1,600,000 1,280,000 Free assets 3,100,000 2,880,000 LIABILITIES Unsecured liabilities with priority 400,000 480,000 1,000,000 1,050,000 Fully secured creditors Partially secured creditors Unsecured creditors without priority 650,000 650,000 1,400,000 3,580,000 1,400,000 3,450,000 1. What is the estimated recovery percentage of unsecured creditors without priority? а. 60% b. 75% с. 78% d. 80%
ABC Corp. had the following data ascertained before liquidation: Total book valueof the assets were P250,000. The book value of the inventories, P80,000 had anexcess in the amount of P26,000 over its estimated fair value. The equipment’sestimated fair value had an excess in the amount of P2,500 over its book value ofP120,000. Included in the book value of the assets was prepaid expenses of P18,000which was considered worthless. Other assets not mentioned above have anestimated fair value which was P15,000 less than its book value. Total liabilities wereP200,000. The accounts payable in the amount of P70,000 was secured by theinventories while the notes payable in the amount of P95,000 was secured by theequipment. Other liabilities not mentioned includes salaries and taxes in the amountof P12,500.What is the amount of net free assets? a. 32,000 b. 93,000 c. 50,000 d. 44,500
ABC Corp. had the following data ascertained before liquidation: Total book valueof the assets were P250,000. The book value of the inventories, P80,000 had anexcess in the amount of P26,000 over its estimated fair value. The equipment’sestimated fair value had an excess in the amount of P2,500 over its book value ofP120,000. Included in the book value of the assets was prepaid expenses of P18,000which was considered worthless. Other assets not mentioned above have anestimated fair value which was P15,000 less than its book value. Total liabilities wereP200,000. The accounts payable in the amount of P70,000 was secured by theinventories while the notes payable in the amount of P95,000 was secured by theequipment. Other liabilities not mentioned includes salaries and taxes in the amountof P12,500. What is the estimated loss on asset?
On January 1, 2021, ABC acquired all the assets and assumed all the liabilities of DEF Co. for P4,500,000. Relevant information follows: ASSETS Fair Values 55,000 800,000 180,000 750,000 4,000,000 200,000 1,555,0000 Carrying Value 55,000 800,000 Cash Receivable Allowance for Doubtful Accounts Inventory Land Goodwill Liabilities 150,000 700,000 3,500,000 150,000 1,555,000 DEC Co. has research and development projects with fair value of P100,000. ABC does not intend to use those R&Ds. However, there have been exchange transactions involving the information generated from DEF, but those transactions are infrequent. > All fair value adjustments result to temporary differences but do not affect the tax bases of the assets and liabilities. The tax rate is 30%. > ABC incurred P200,000 on general administrative costs of maintaining an internal acquisition department. Compute the goodwill (gain on bargain purchase)?