Consolidated Equity at the date of acquisition
Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…
A: PROMDI CO. acquired the net assets of CARDO CO and SYANO CO PROMDI CO issues CARDO CO = 30000…
Q: Assume that the cost of acquisition includes a control premium of P30,000, the non-controlling…
A: Retained earnings refer to the earnings earned by the parent company and the part of the earnings of…
Q: overvalued Building. As a consideration, OPQ Co. issued its own shares of stock with a market value…
A: Business combination: When a company takes a business of another company, such taking over is known…
Q: Acquirer Company purchased the net asset of Acquiree Company by paying cash of P800,000 and issuing…
A: Particulars Amount Amount Fair value of the consideration given up Cash $800,000…
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
A: After the merger, the retained earnings of the acquired company become retained earnings of the…
Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…
A: Correct option: 203,000 Incorrect option: 76,000 30,000 56,000
Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…
A: Goodwill is an intangible asset that is related to the takeover of one company by another. In fact,…
Q: Wendelle paid finder's fees of P40,000, acco legal fees (advisory) of P15,000, salaries of V to the…
A: When a cost is expensed, it is recorded on income statement and deducted from revenue to calculate…
Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…
A: PROMDI CO. acquired the net assets of CARDO CO and SYANO CO Purchase consideration of CARDO CO =…
Q: On January 1, 20X1, Par Inc acquires 85.77% of Sub Corp for $211,625 in cash. Immediately before the…
A: 1. Fair value method 2. net assets method
Q: If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P10 par value…
A: Calculation of Consolidate Total Liabilities at the date of Acquisition:
Q: On January 1, 2020, Adams acquires 100% of Baker in a transaction accounted for using the…
A: Two methods of goodwill recognition:- partial method Full goodwill method
Q: rted by Alakdan Co. ii. The total assets of Alakdan Co. after the business combination. iii. The…
A: Goodwill is referred to as amount which exceeds the fair value of assets and liabilities assumed by…
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…
A: SOLUTION GOODWILL = PURCHASE PRICE OF TARGET COMPANY -(FAIR MARKET VALUE OF ASSETS - FAIR MARKET…
Q: Suppose that Purchasing Company acquires 90% of Selling Company by issuing stock valued at $800,00O.…
A: Formula Used:
Q: Choose the correct. A parent buys 32 percent of a subsidiary in one year and then buys an additional…
A: Acquisition: The acquisition refers to the business combination when one entity or organization…
Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…
A: In the Acqusition cost of equity the expenses like legal and brokerage fees, due diligence, audit…
Q: Parent Company acquired Sub Company on February 6, 2022. The following out of pocket costs of the…
A: The question is related to Share Issue Expenses. Expenditure incurred in connection with issue of…
Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…
A: PROMDI CO. acquired net assets of CARDO CO. and SYANO CO. Purchase consideration of CARDO CO. =…
Q: How much is the Consolidated Shareholder's Equity on December 31, 2022?
A: Solution Consolidated shareholder's Equity Means The total assets of the company and its…
Q: On 1 January 20X8, Coconut acquired 80% of the share capital of Rice for £100,000 when Rice had…
A: Calculation of Retained earnings balance as on 31 Dec, 2019 in CFS Balance of Retained…
Q: what is the Goodwill?as well as the amount of the Consolidated Total Assets,Total Liabilities , and…
A:
Q: a. Given the following acquisition-date balance sheets of the parent and subsidiary, at what amounts…
A: a). Amounts will be reported on the consolidated balance sheet 1 Accounts Receivable…
Q: Reyd Company has bought the entity from previous owners through a leveraged management buy-in (MBI).…
A: As per IAS 38 of International financial reporting standards Intangible asset is an asset which…
Q: DEF company acquired the assets and assumed liabilities of GHI Company on January 1, 2022 by paying…
A: Calculate fair value of liabilities acquired: Amount (P) Book value of liabilities…
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
A: Solution Calculation of purchase consideration paid by SD- Particulars To GM To SR Total Cash…
Q: Puncho Company is acquiring the net assets of Semos Company in exchange for common stock valued at…
A:
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
A: A merger refers to the business arrangement under which two existing companies form the new company.…
Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…
A: PROMDI CO. acquired net assets of CARDO CO. and SYANO CO. Purchase consideration of CARDO CO. =…
Q: Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the…
A: Solution:- Preparation of the journal entries to record the non-controlling interest as follows…
Q: King’s Road recently acquired all of Oxford Corporation’s stock and is now consolidating the…
A: A) Deferred Tax liability: Deferred Tax liability = $ 51200.
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
A: Hence, option 3rd and 4th is correct
Q: A parent buys 32 percent of a subsidiary in one year and then buys an additional 40 percent in the…
A: Identify the appropriate answer for the given statement from the given choices. Option (a)…
Q: Pushdown Accounting Assume a parent company acquires its subsidiary by paying $1,200,000 for all of…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Assume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the…
A: Company A acquired 70% of Company B Cash price paid = $14 million The share capital of Company B= $8…
Q: If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value…
A: Computation of Consolidated Total Asset at the date of Acquisition:
Q: ompany Aero is about to acquire 100% of company Berry. Company Berry has identifiable net assets…
A: Acquisition means the acquiring the stock or net assets of one company by the other company and take…
Q: Entity earnings Industry earnings in pesos P 700,000 Year in percent 2012 11 2013 800,000 11 2014…
A: ABC Corporation is planning to purchase another entity. ABC gathered the following information based…
Q: If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value…
A: Given information, CARDO Co. purchased the Net Assets of SYANO Co. by issuing 5,000 Shares (par…
Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…
A: According to IFRS 3, Acquisition-related costs incurred by the acquiring company to effect the…
Q: Pete Corporation and Sol Company agreed to combine their businesses, with Pete Corporation as the…
A:
Q: At the beginning of the current year, an entity acquired 40% of the outstanding ordinary shares of…
A: Investment income is the earnings of the company made from the holding of shares in another company.
Q: ssume that Company A acquires 70 per cent of Company B for a cash price of $14 million when the…
A: Solution: Calculation of goodwill when NCI is measured at Fair Value: Fair value of Consideration…
Q: Pillow Company is purchasing an 80% interest in the common stock of Sleep Company for $800,000.…
A: Non controlling interest is the aggregate interest of all minority shareholders of the company. It…
Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: How much is the consolidated profit? On January 2, 2021, ABC Co. acquired 60% interest in DDD Corp.…
A: consolidated profit = consolidated revenue - consolidated expenses - consolidated operating expenses…
Q: n January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…
A: solution given Number of ABC co’s share 60000 Par value per share 40 Fair value of…
Q: Highpoint owns a 95 percent majority voting interest in Middlebury. In turn, Middlebury owns an 80…
A: Hey, since there are multiple sub-parts posted, we will answer the three sub-parts. If you want any…
If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the
REQUIREMENTS: Consolidated Equity at the date of acquisition
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- ABC Co. is acquiring XYZ Inc. XYZ has the following intangible assets: Customer list with an observable fair value of $45,000 Identifiable research and development costs of $150,000 A 5-year operating lease with favorable terms having a discounted present value of $6,000. Patent on a product that is deemed to have no useful life $15,000. ABC will record how much for acquired Intangible Assets from the purchase of XYZ Inc?Assume El Dorado Inc. buys a competitor’s assets for $900,000. Of the $900,000 acquisition price, $600,000 is allocated to Section 197 Intangible Assets as follows: Customer Lists $60,000 Trade Name $90,000 Non-Compete Covenant 80,000 Patent $120,000 Goodwill $250,000 What is El Dorado’s accumulated amortization and remaining basis in each of its Section 197 Intangibles after 3 years? Use a table to present your answer.W Co. acquired the intangible assets listed below for a total lump sum price of P400,000. Intangible asset Service mark Order and production backlogs In-house research and development Fair value P160,000 120,000 80,000 120,000 How much is the initial measurement of the masthead? Masthead Your answer On January 1, 20x1, M Co. incurred P500,000 in registering a patent. It was initially estimated that the useful life of the asset is 20 years, equal to its legal life. However, on January 1, 20x6, M assessed that the useful life of the patent was only 15 years starting on the date of registration. How much is the amortization expense in 20x6? Your answer
- Tesla acquired Amazon, for $33,520,000. The fair value of all Amazon's identifiable tangible and intangible assets was $30,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition? Multiple Choice O O $880,000 $1,760,000 $O $3,520,000 < Prev 6 of 25 Save & Ex NextQuestion. On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase price allocation included the following items: $4 million, patent; $3 million, developed technology; $2 million, in-process research and development; $5 million, goodwill. Lexicon’s policy is to amortize intangible assets using the straight-line method, no residual value, and a five-year useful life. What is the total amount of expenses (ignoring taxes) that would appear in Lexicon’s income statement for the year ended December 31 related to these items?Hoolia Corporation acquires equipment and patents from another company for $50 million and records the acquisition as an asset acquisition. The equipment has a fair value of $19.20 million and the patents have a fair value of $28.80 million. Neither asset is nonqualifying. At what value does Hoolia record the equipment? Select one: a. $25.0 million b. $20.0 million c. $21.2 million d. $19.2 million
- Problem 2: GHI Corporation entered into a 20-year franchise that allows ZZ Corporation the right to use its se its intellectual property. As part of the standard contract, ZZ gave P500,000 as down payment and a P2,000,000 note that requires equal annual payments over ten years. The down payment is for the supporting assets (equipment and inventory) with total cost of P300,000 and stand-along price of P500,000 to GHI. The prevailing market interest rate of similar notes is 9%. GHI is also to BAGUIO CITY receive royalty of 3% of ZZ's revenue each year end. ZZ earned revenues of P10,000,000 during the first year. Required: OR 5. Revenue from sale of supporting assets 6. Initial franchise revenue for the first year 7. Continuing franchise revenue for the first year Interest revenue for the first year 8.Wember Company acquired a subsidiary company on December 31, 2015, and recorded the cost of the intangible assets it acquired as follows: Patent $100,000 Trade name 80,000 Goodwill 150,000 The patent is being amortized by the straight-line method over an expected life of 10 years with no residual value. Amortization has been recorded for the current year. The trade name was considered to have an indefinite life. Because of the success of the subsidiary in the past, Wember has not previously considered any of the intangible assets to be impaired. However, in 2019, because of a current recession and technological changes in the subsidiary’s industry, Wember decides to review all of its intangible assets for impairment and record any adjustments at December 31, 2019. Wember estimates that the fair value of the patent is $42,000. The company estimates the fair value of the trade name to be $90,000 but decides that it now has a limited life of 5 years. The subsidiary company,…The Wilcox Company acquires four machines that have the following characteristics: Machine Cost Estimated Residual Value Estimated Service Life A P26,000 P2,000 6 years B 19,000 1,000 9 C 30,000 5,000 5 D 28,000 - 7 Required Prepare journal entries to record the acquisition and the first year’s depreciation, assuming that the composite method is used on a straight-line basis. If the company sells machine B after four years for P 10,000 prepare the journal entry.
- Wember Company acquired a subsidiary company on December 31, 2015, and recorded the cost of the intangible assets it acquired as follows: Patent $80,000 Trade name 100,000 Goodwill 250,000 The patent is being amortized by the straight-line method over an expected life of 10 years with no residual value. Amortization has been recorded for the current year. The trade name was considered to have an indefinite life. Because of the success of the subsidiary in the past, Wember has not previously considered any of the intangible assets to be impaired. However, in 2019, because of a current recession and technological changes in the subsidiary’s industry, Wember decides to review all of its intangible assets for impairment and record any adjustments at December 31, 2019. Wember estimates that the fair value of the patent is $42,000. The company estimates the fair value of the trade name to be $120,000 but decides that it now has a limited life of 6 years. The subsidiary…Wember Company acquired a subsidiary company on December 31, 2015, and recorded the cost of the intangible assets it acquired as follows: Patent $80,000 Trade name 100,000 Goodwill 250,000 The patent is being amortized by the straight-line method over an expected life of 10 years with no residual value. Amortization has been recorded for the current year. The trade name was considered to have an indefinite life. Because of the success of the subsidiary in the past, Wember has not previously considered any of the intangible assets to be impaired. However, in 2019, because of a current recession and technological changes in the subsidiary’s industry, Wember decides to review all of its intangible assets for impairment and record any adjustments at December 31, 2019. Wember estimates that the fair value of the patent is $42,000. The company estimates the fair value of the trade name to be $120,000 but decides that it now has a limited life of 6 years. The subsidiary…MAP Ltd acquired a Machine from FAT Ltd for the following consideration:o Cash $65 000,o Land in the books of MAP Ltd the land is recorded at its cost of $750 000.It has a fair value of $700 000.MAP Ltd also agrees to assume the liability of the FAT Ltd bank loan of $95 000 as part ofthe Machine acquistion Calculate the acquisition cost of the Machine Provide the journal entries that would appear in MAP Ltd.’s books to accountfor the acquisition of the Machine.