(1a) How much gain (loss) will Gloria realize on the contribution of the assets to YCI? (1b) How much gain (loss) will Gloria recognize on the contribution of the assets to YCI? (1c) What will be Gloria’s basis in the 16,800 shares of YCI common stock he receives?
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(1a) How much gain (loss) will Gloria realize on the contribution of the assets to YCI?
(1b) How much gain (loss) will Gloria recognize on the contribution of the assets to YCI?
(1c) What will be Gloria’s basis in the 16,800 shares of YCI common stock he receives?
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- Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2018, the companies had the following account balances: Akron ToledoSales . . . . . . .. $1,100,000 $600,000Cost of goods sold 500,000 400,000Operating expenses 400,000 220,000Investment income . . Not given –0–Dividends declared . . .80,000 30,000 Intra-entity sales of $320,000 occurred during 2017 and again in 2018. This merchandise cost $240,000 each year. Of the total transfers, $70,000 was still held on December 31, 2017, with $50,000 unsold on December 31, 2018.a. For consolidation purposes, does the direction of the transfers (upstream or downstream) affect the balances to be reported here?b. Prepare a consolidated income statement for the year ending December 31, 2018.DEE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its fair value at $1,400,000. The entity acquired the equipment by issuing 1,000 $1,000 8% bonds, currently quoted at 103. At how much shall the equipment be initially measured? A. $1,030,000 B. $1,400,000 C. $970,000 D. $1,000,000On November 1, 2018, Berry Corporation declared equipment as property dividend payable on February 15, 2019. The carrying amount of the equipment is P700,000. Data relating to the fair values of the equipment are as follows: Date Fair value November 1, 2018 600,000 December 31, 2018 800,000 February 15, 2019 760,000 **(assume that the cost to distribute are immaterial) How much is the gain on distribution of property dividends on February 15, 2019 when the dividends were finally distributed?
- Akron, Incorporated, owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2024, the companies had the following account balances: Items Sales Cost of goods sold Operating expenses Investment income Dividends declared Akron $ 1,100,000 500,000 400,000 Not given 80,000 Required A Required B Intra-entity sales of $320,000 occurred during 2023 and again in 2024. This merchandise cost $240,000 each year. Of the total transfers, $70,000 was still held on December 31, 2023, with $50,000 unsold on December 31, 2024. Required: a. For consolidation purposes, does the direction of the transfers (upstream or downstream) affect the balances to be reported here? b. Prepare a consolidated income statement for the year ending December 31, 2024. Required A Required B Toledo $ 600,000 400,000 220,000 Complete this question by entering your answers in the tabs below. 0 30,000 For consolidation…What is the capitalized cost of the acquired PPE if ABC Corp. madethe following property acquisitions on Jan. 1, 2021: a. Acquired a piece of land in exchange for its shares. The shareshave a total fair value of P5,000,000 while the fair value of theland is P5,100,000. b. Purchased a machinery on installment. The cash price isP800,000 while the installment price is P1,000,000. It requireda down payment of P200,000 and the balance payable everyJan. 1 for 4 years, starting in the year 2022.What is the capitalized cost of the acquired PPE if ABC Corp. madethe following property acquisitions on Jan. 1, 2021:a. Acquired a piece of land in exchange for its shares. The shareshave a total fair value of P5,000,000 while the fair value of theland is P5,100,000.b. Purchased a machinery on installment. The cash price isP800,000 while the installment price is P1,000,000. It requireda down payment of P200,000 and the balance payable everyJan. 1 for 4 years, starting in the year 2022. 1. What is the amount of Capitalized Cost?
- What is the capitalized cost of the acquired PPE if ABC Corp. madethe following property acquisitions on Jan. 1, 2021:-Acquired a piece of land in exchange for its shares. The shareshave a total fair value of P5,000,000 while the fair value of theland is P5,100,000.-Purchased a machinery on installment. The cash price isP800,000 while the installment price is P1,000,000. It requireda down payment of P200,000 and the balance payable everyJan. 1 for 4 years, starting in the year 2022. Question 1. What is the capitalized cost?Investment Property Determine the cost of the following items of investment acquired by Sasha Corporation during 2022; Land and building were acquired to be held for under operating leases. The company made a de payment of P4,000,000, issued 20,000 P200 par ordinary shares with a market price of P240 per share, and issued a three-year non-interest-bearing note for P6,000.000 note is payable in equal annual installments of P2,000,000 at the end of each year from the date of purchase. The prevailing interest rate for similar notes is 10%. 30% of the purchase price is allocated to the land. Investment property is recorded at what amount __________Use the following information for question 6 and 7: Marksman acquired 100 percent of Tribal Transit for P275,000. At the date of acquisition, Fast Transit had the following book and market values: Book Value Market Value Cash and Receivables P30,000 P30.000 Inventory 100,000 120,000 Plant Assets (net) 210,000 300,000 Current Liabilities (45,000) (45,000) Long-term Debt (115,000) (115,000) Common Stock (10,000) Retained Earnings (170,000) 6. What is the amount of the "Investment in Tribal Transit" account on Marksman's financial records at the acquisition date? 7. What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?
- The original cost of the properties was P9,000,000 each when they were acquired on January 1, 2015. Both have an estimated useful life of 10 years The entity uses the fair value model to value all its investment properties. Required: Computed the followinga. Total amount recognized in the Dec. 31, 2017 statement of profit or loss b. Total amount recognized in the Dec. 31, 2017 Statement of financial position c. Provide adjusting enty on Dec. 31, 2017.For letters a to d, identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: a. As of Jan. 1, 2021, the fair value of the inventory of X was P100,000 higher than its carrying value. All of the inventory were sold as of the end of the year. b. The fair value of equipment held by X is P500,000 while its carrying value is P360,000 as of the beginning of the year. It has a remaining useful life of 3 years as of Dec. 31, 2021. c. X sold inventories costing P150,000 to ABC for P200,000. Only 75% of these inventories were sold by ABC to third parties as of the end of the year. d. Actuarial gains for the year totaled P400,000.Luxemburg Company purchased the following investments during 2021: Initial Cost Transaction cost Fair value Year-end 2021 Security A P180,000 P5,000 P170,000 Security B 150,000 2,500 120,500 On July 31, 2022, the entity sold all of the shares of Security B for P125,800. On December 31, 2022, the shares of Security A had a fair value of P205,000. No other activity occurred during 2022 concerning the portfolio. Retained earnings before any adjustments on equity securities on December 31, 2022, is P975,000. Assuming nontrading securities, how much is the Retained earnings on December 31, 2022?
