2nd Quarter 350,000 340,000 365,000 465,000 Provide the under/(over) valuation of the entity to be acquired.
Q: Find the Ac
A: Here, in this question ,we have to find out the Actual and approximate time
Q: A company incurred $200,000 of manufacturing cost during the month, with a beginning finished goods ...
A: Formula: Cost of goods sold = Beginning finished goods + Manufacturing costs during the month - Endi...
Q: Asters Co. uses a job order cost system. The March. Journalize the entries to record the su a. Mater...
A: A Journal entry is a primary entry that records the financial transactions initially. The transactio...
Q: A supervisory employee is a recipient of a stock option which vested during the year. The following ...
A: ESOP Is employee benefits plan that gives worker and employees ownership in the company. Generally E...
Q: Draw a ( Ledgers ) for all transactions please. ASSIGNMENT PRINCIPLES OF ACCOUNTING (BAAC 1102) Give...
A: a) CASH Date Description Debit Credit Balance 1-Apr Hilal, Capit...
Q: en budgeting is effective controlling practices and monitoring. 2. Budgeting is essential to busine...
A: Budgeting is considered to be an important decisions for a business as it help the business to under...
Q: 3) Misnap is a manufacturing firm. In April, it had a beginning inventory balance in its raw materia...
A: Formula: Raw materials used = Beginning inventory + Purchases during the month - Ending inventory
Q: At the break-even point of 1800 units, variable costs are $138000, and fixed costs are $96000. How m...
A: At 1800 units, the net income is $0. So, Contribution margin = Fixed costs = $96000
Q: Suppose Columbia Sportswear Company (USA) had accounts receivable of $205,025,000 at the beginning o...
A: Cash receipts from the customers = Beginning Accounts Recivable + Sales revenue - Ending Accounts Re...
Q: Bay Company holds 60,000 of Fay Company's 200,000 outstanding shares and 8,000 of Hay Company's 400,...
A: The dividend received from the shares invested in some companies is considered as a revenue for the ...
Q: Prepare journal entries to record items (a) through (f) above [ign Prepare T-accounts for Manufactur...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three...
Q: Citricacid plc budgets during its first year of operations to produce and sell 38,160 litres of pro...
A: Budgeted Cost: A budgeted cost is a gauged future cost that the organization is supposed to bring ab...
Q: At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amoun of...
A: The Purchase price of the bond = Present Value of Interest + Present value of Bond at Maturity. Sin...
Q: A clock manufacturing company expected that standard direct material cost per unit will be $ 150, st...
A: Lets understand the basics. For calculating standard cost per unit, we will need to use below formul...
Q: The standard direct labour cost of product C is as follows: Three hours of skilled labour at £4 per ...
A: Direct labor is labor that is allotted to a specific product, cost center, or work order. When a co...
Q: 1 Third party liability auto insurance is mandatory coverage. True B) False 2 Under an automobile's ...
A: Answer 1 Correct option (A): TRUE According to the motor vehicles Act, third party Insurance is a m...
Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of ...
A: Formula: Interest expense = Loan Amount x Interest rate x Time period
Q: Which ONE of the following statements concerning costing is correct? a) The procedures used to calcu...
A: Justification: a. Manufacturing industries use process costing method and service industry uses job ...
Q: If the value of the clothing allowance voucher during the year amounted to 1,500,00O
A: Value of clothing allowance is not taxable. Exempt from tax . Then whole amount is nontaxable.
Q: What is the maximum contribution that an employer can make to an employee’s SIMPLE account?
A: A SIMPLE IRA (Savings Incentive Match Plan for Workers) plan enables employees as well as employers ...
Q: You were recently hired to work in the controller's office of the Balboa Lumber Company. Your boss, ...
A: Accounting Standard- Accounting standards are designed to ensure that accounting practices are consi...
Q: Your friend shows you c Basic salary Overtime and Holido
A: When income is calculated for tax purposes at that time tax payers do not include their gross income...
Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...
A: Lets understand the basics. For calculating cost per unit, we will need to use below formula. Cost p...
Q: What amount should be recognized by Ripple as profit from sale for the year ended December 31, 2020?...
A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent. Financia...
Q: 11 Apple and Green started a business as a partnership on January 1 200A. Apple contributed P 36.000...
A: In this question, we will make statement of partner's Equity for both years.
Q: 30. A company uses the first-in-first-out (FIFO) method of valuing inventory and makes the followin...
A: FIFO METHOD :- it stands for first in first out that means good that is purchased first will be sold...
Q: A corporation has a taxable income of $2,282,175. At this income level, the federal income rate is ...
A: Tax- Individuals, businesses, estates, and trusts pay federal and state income taxes on a chargeable...
Q: Pacheo Corporation, which has only one product, has provided the following data concerning its most ...
A: GIVEN Pacheo Corporation, which has only one product, has provided the following data concerning i...
Q: Miller Corporation has the following sales budget for the third quarter of 2021: Month ...
A: Lets understand the basics. Management for the purpose of preparing cash budget calculates the cash ...
Q: Which of the following is an exclusion from gross income? a. Separation payment as a consequence of...
A: Under the Tax Code of the Philippines, separation fees and benefits in the Philippines are exempted ...
Q: Primage Corporation has provided the following data concerning last month's manufacturing operation:...
A: Solution: Cost of goods manufactured is the cost of finished goods produced during the year. This is...
Q: Dabin Company purchased a P1,000,000 ordinary life insurance policy for its president. The beneficia...
A: Dividend received from insurance company shall be adjusted with premium amount of a life insurance.
Q: 1. If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded quarte...
A: This pertains to compound interest. Compound interest accrues on both the initial principal as well ...
Q: insurance company pays its employees a commission of 6 percent on each sale. What is the proper clas...
A: the constant cost are those cost and industry where is firm cost are not impected by entry or exit o...
Q: es erest income, net of final st of sales
A: Working: Allowable deductions from Gross income: →Salary expense →Interest expense →Rent expense →Ad...
Q: A stock dealer sold 5,000 shares directly to the buyer. The details are as follows: Selling price. ...
A: Gain or loss on capital gain refers to the amount of selling price which is more the the total cost...
Q: Blossom Leasing Company agrees to lease equipment to Blue Corporation on January 1, 2020. The follow...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: On January Ist, 2009, an entity's balance sheet showed a total asset of $850 and total liabilities o...
A: Formula: Accounting equation: Assets = Liabilities + Owners equity
Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of S950,000. ...
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life years
Q: Kirk Company purchased equipment by making a down payment of P400, 000 and issuing a note payable fo...
A: Capitalized cost of the equipment = Down payment + Present value of Note + Shipping charges + Instal...
Q: Haribo has manufactured gummy bears, since 1920. Those bears are currently made in 16 plants around ...
A: given At the end of the month, approximately what percentage complete will gummy bears be with res...
Q: On January 1, 2021, Illuminati Company purchased 10% bonds with a face amount of P3,000,000. The bon...
A: Bond Valuation Bond can be valued either in par value or in discount or in premium as well. The cal...
Q: What is your opinion of the organization's financial strength Do you see any significant financial ...
A: Financial Strenght is the basic requirement for any business to flourish. Profit making business hav...
Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of ...
A: Lets understand the basics. For calculating interest payable at the year end, we will need to use be...
Q: Which of the following is correct
A: All capital gains are not capital assets. Taxpayers not remits tax to government. Exempt from income...
Q: ABC County Established in 2014 a Cafeteria for the use of its employees and the public. The followin...
A: Income and expenditure account: It is a financial statement that calculates the net income generat...
Q: 10 Which of the following requires that quality be manufactured rather than inspected into products?...
A: This statement is relevant for JIT i.e. Just in Time Process of production where production starts o...
Q: Dow Deep Mining Co acquired mineral rights for $56,000,000. The mineral deposit is estimated at 70,0...
A: Formula: Depletion Rate per ton = Cost of Mining Rights/ Estimated mineral deposit in tons
Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of ...
A: Interest payable is the amount which is due but not yet paid. Every year end an adjustment entry is ...
Q: me is $24.
A: Given; Price of E= $3 Price of O= $1 Income= $24
Step by step
Solved in 3 steps
- Investment in SW Traders LimitedDuring the 2022 financial year, SendIT Limited and Wheels Limited incorporated SW Traders Limited. SW Traders Limited will be a tyre dealer. SendIT Limited acquired 60% of SW Traders Limited’s share capital for R300 000, and Wheels Limited acquired 40% of the share capital for R200 000. In terms of the agreement that governs the operations of SW Traders Limited, all decisions relating to the operations of SW Trad-ers Limited need to be taken by both SendIT Limited and Wheels Limited. Neither party can make decisions without each other’s consent. SW Traders Limited does not have any administrative staff and is 100% administered by a combination of SendIT Limited and Wheels Limited staff, which includes the company’s finance function. More than half of SW Traders Limited’s sales are channelled to SendIT Limited and Wheels Limited. SW Traders Limited will always give preference to the needs of SendIT Lim-ited and Wheels Limited over that of any third party…The following information is available for a FVTOCI investment: Purchase price $400,000; Unrealized holding gain at the end of year 1 $5,000; Unrealized holding gain at the end of year 2 $6,000. Calculate the balance in the AOCI equity holding (loss) or gain account at the end of year 2 for reporting purposes. O Gain of $6,000 O Gain of $411,000 O Gain of $5,000 O Gain of $11,000ukm0jUnAg/formResponse?pl-1 Required Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer company reports $1,200,000 earnings for the year in its net income and pays $550,000 in cash dividends at the end of the year 2020. 1. Using the cost method, what is the investment income and the balance sheet investment account balance respectively for AXE company? O A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above.
- Consider the following information about Firm A and Firm T: Item Firm A (Acquiring firm) Firm T (Target firm) Price per share $20 $15 Outstanding shares 50 25 Total market value $1000.00 $375 Total cost of the acquisition is $500.00 and the merger is estimated to create a synergistic gain of $700.00. What is the NPV of the acquisition to firm A? Select one: a. $1075.00 b. $575.00 c. $425.00 d. $555.004. An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Group of answer choices Nil P40,000 P160,000 P420,000Company A is considering the acquisition of Company B, and intends to finance this potential acquisition using only retained cash. Consider the information in Table 2 about Companies A and B, expected synergies from the acquisition and price asked by Company B's shareholders to sell their company. Table 2 A Current market value (€) 700 420 Number of shares 100 40 Expected synergies from acquisition (€) 80 Value asked by Company B's shareholders (€ ) 560 To answer the following questions make plausible assumptions if necessary. a. What is the expected combined value after acquisition? Explain your answer. b. Should A acquire B by €560? Explain your answer. c. Consider the scenario where Company A decides to finance the acquisition with equity instead of cash. What would be the optimal exchange ratio of Company Av ersus Company B shares? Explain your answer.
- You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the transaction value for this acquisition of Target Co.? Acquisition of Target Co. by Acquirer Ltd. Target Share Price ($/sh.) $85.40 Acquisition Premium 15% Diluted Shares Outstanding (MM) 670 Target Total Debt $3,562 Target Cash and Cash Equivalents $5,147 % Debt Financing 40% % Equity Financing 60% Equity Financing Fees 4.0% Debt Financing Fees 1.5% Other Transaction Costs $800Niagara Company is contemplating acquiring Toronto, Inc. on January 1, 2020. The information on Toronto's profit and net assets for the last five years are as follows: Profit Net Assets2019 P 4,000,000 P20,200,0002018 3,200,000 20,000,0002017 3,000,000 18,500,0002016 3,800,000 17,900,0002015 2,500,000 15,600,000 It is agreed that Niagara is willing to pay for goodwill measured by capitalizing at 40% excess of the average profits over normal return on net assets. The normal return on average net assets for the industry to which Toronto belongs is 10%.How much should Niagara Company pay to Toronto, Inc. in the…E3.5 Acquisition analysis, including fair value adjustment for plant and equipment (Section 3.6.2) On 1 October 20XO, EF Ltd acquired all the issued ordinary shares of GH Ltd. The terms of the acquisition agreement specified that EF Ltd must pay the existing shareholders of GH Ltd $1.5million immediately and a further $1.5million on 30 September 20X1. The incremental cost of short-term finance to EF Ltd is 10% p.a. At acquisition date, the issued capital and reserves of GH Ltd were as follows: Issued capital 1 200000 Retained eamings 1/10/20X0 1400000 At 1 October 20xO, the plant and equipment of GH Ltd had a carrying amount that was $150000 less than its fair value. The company income tax rate is 30%. REQUIRED (a) Prepare the general journal entries for the accounting records of EF Ltd to record: (i) the investment in GH Ltd on 1 October 20X0 (ii) the cash payment of the $1500 000 on 30 September 20X1.
- Bidwell Corp has made a cash tender offer for 2 million shares of Marda Corp. at a price of $20, which is $6 higher than Marda's current stand-alone value. Which one of the below is the cost of the acquisition? O $40 million O $28 million O $12 million O ZeroDuring 2020, Carpenters Corporation purchased equity securities and carried them at fair value through other comprehensive income. Pertinent data follow:Earth Ordinary Wind Ordinary Fire OrdinaryCost P36,000 P80,000 P180,000Market value. 12/31/20 40,000 60,000 186,000 The unearned loss reported in Carpenter's 2015 profit or loss is: A. P0B. P6,000C. P10,000Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,0001. What amount should Paul Company report as unrealized gain on its 2020 profit or loss? a. P160,000 b. P110,000 c. P100,000 d. P 50,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position? a. P60,000 credit b. P20,000 debit c. P80,000 debit d. P20,000 credit