On January 1, 2021, Parent Co. acquired 80% of Subsidiary Inc.'s outstanding stocks for P1,600,000 cash. Subsidiary Inc's balance sheet shows P3,000,000 identifiable assets and P1,800,000 liabilities. All assets and liabilities of Setter are fairly valued, except for an undervalued equipment. The stock acquisition resulted to a goodwill of P700,000. Assume Parent had P5,100,000 total assets prior to the said transaction. NCI is measured at fair value. How much is the total assets in the consolidated balance sheet after the stock acquisition?
Q: Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost…
A: In the flexible budget revenue and net operating are less than actual revenue and net operating…
Q: Debacle Company was organized on January 1, 2012. On that date, it issued 200,000 shares with P10…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Moo
A: Shareholders also invest money in the company and in return they become the owners in proportion to…
Q: Rochelle is a limited partner in Megawatt Partnership. For 2021, her schedule K-1 from the…
A: Income tax payable is an obligation for the tax payers to the government on the taxable income.…
Q: Assume the following production data taken from the records of CONEY Manufacturing Co: Transferred…
A: Equivalent units means number of units that is taken as completed for the calculation of cost per…
Q: Home Office ordered office table and chairs worth 20,000 to be carried in branch books. The branch…
A: Head office and branch accounting is done when one office is called as head office where all…
Q: Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: With regards to the yachts it constructs, Swift Corporation utilizes a job order costing system.…
A: 3. Work-in-process Job. No. Amount 78 1559350 82 2720175 86 1269050 Total 5548575
Q: 019. The debentures have a four-year term, and interest is payable annually in arrears at nominal…
A: Treatment of Debenture issued on discount Concept for accounting of issuance of debentures
Q: Joung Par Stock On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: What is the difference between the Cumberland Gap and GAAP?
A: Answer:- Difference meaning:- Difference is an important notion in philosophy, referring to the…
Q: The following balance sheet is for X Company: Balance Sheet January 1, 2021 Assets Equities Cash…
A: Solution: Total assets = Total equities We will compute total assets on dec 31, 2021, same will be…
Q: Rush issued callable bonds on January 1. 2021. Rush's accountant has projected the following…
A: Calculation of annual Stated interest rate on the bonds ::: Carrying Amount at the end…
Q: 8c. A large profitable corporation is considering a capital investment of $50,000. The equipment has…
A: The fee charged by the government from the individuals and various business entities on the income…
Q: The School of Accounting (SOA) at State University is planning its annual fundraising campaign for…
A: 1. The School of Accounting (SOA) Direct Labor Budget In Hours Minutes for wrong numbers 1800…
Q: The First Bank has total reserves of $1000, excess reserves of $800, and required reserves of $200.…
A: Answer is option b) $800
Q: How much is the net effect of the transactions listed above on profit or loss before tax in the…
A:
Q: Explain the difference between: a) Cash Flows versus Accounting Estimates b) Static Payback Period…
A: When a company prepares financial statements or budgets it has to estimate various amounts. The…
Q: Question Content Area Based on the following data for the current year, what is the inventory…
A: The inventory turnover ratio can be calculated by dividing the cost of goods sold by the average…
Q: The following transactions of Africa Traders (not registered as a VAT vendor) only appeared in the…
A: Cash payment journal means the books that record all the transaction where the payment is made…
Q: Planet 22 In 2019 oil is discovered at Sunshine Site. Moonlight Site…
A: Journal entries using the area of interest method:- (a). Exploration and evaluation asset-Sunshine.…
Q: 7) Assume that a $1.00 increase in exports increases GDP by income increases import spending by…
A: Calculation of Expected increase in GDP if exports increase by $ 1,000 million It is specified in…
Q: unted to R60 000 per month. Marketing costs included a sales commission of 5% of the sales revenue…
A: In absorption and variable costing, fixed overhead expenses are treated differently. Using…
Q: ABC company prc
A: Gross income is the total income you earn on your paycheck, and net income is the amount you receive…
Q: Pure Self-Employment Architect Adira offers architectural design services. She is also the sole…
A: Income Tax Liability: - The amount of money in the form tax a person owe to tax authority is known…
Q: units were produced. Prego would report depreciation in 2022 of: Multiple Choice $110,067. $132,800.…
A: Introduction:-. Depreciation is an expense. Which is charged on fixed asset over estimate useful…
Q: Jennifer Company sells many products. Gizmo is one of its popular items. Below is an analysis of the…
A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…
Q: a Traders is a registered VAT vendor and uses the periodic inventory system. Africa Traders buys and…
A: Since Mrs. South has settled her account.
Q: Noncash contributions received by a not-for-profit entity should be recognized on the date received…
A: Noncash contributions received by a not-for-profit entity should be recognized on the date received…
Q: Explain theimportance oftransfer pricing
A: Transfer Pricing- Transfer pricing refers to the rate at which one unit of an organization sells…
Q: ases? or only in t
A: The explanation is given below ,
Q: When a partner retires from the partnership and is given more cash than his adjusted capital, how…
A: Solution: When a partner retires from the partnership and is given more cash than his adjusted…
Q: IASB requires the use of _____ as a measurement basis. a. historical cost b. not given c. current…
A: Introduction:- The International Accounting Standards Board (IASB) issued Framework for the…
Q: 1. The machine costs P210 000 and expected to have a salvage value of P15 000 after 12 years.…
A: Given information, Cost of the machine =P210,000 Useful life =12 years Salvage value =P15,000…
Q: Chic Design is a manufacturer of large flower pots for urban settings. The company has these…
A: Standard costing means where standard is set for various cost element and actual cost is then…
Q: It will cost $9414 to acquire an ice cream cart that is expected to produce cash inflows of $3873 a…
A: If the cash inflow is equal throughout the period: Payback period = Cash outflow / Annual Cash…
Q: O'Shaughnessy Inc. sells a product for $90 per unit. The variable cost is $65 per unit, while fixed…
A: Introduction: Break even point: The point where there is no profit nor loss to the units sold called…
Q: Accepting Business at a Special Price Forever Ready Company expects to operate at 85% of productive…
A: A variable cost is one that varies in response to changes in an activity. The "activity" in a firm…
Q: Entries for Issuing No-Par Stock On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash…
A: Preferred stock means the amount raised against which dividend is given to stock holder but after…
Q: ABC Company uses a backflush costing system with three trigger points: Purchase of direct materials…
A: Calculation of the Value of ending Finished Goods as of the end of April::: ABC Company produced…
Q: You received the following financial statement from Bok Traders who manufacture replica rugby…
A: The budgeted income statement includes all of the line items found in a typical income statement,…
Q: Z Corp. incurred the following costs in 2001 (its first year of operations) based on production of…
A: The income statement card can be prepared using various methods as variable costing and absorption…
Q: Use the following information for the Quick Studies below. (Algo) Skip to question [The following…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: ABC Company has two departments and uses a job-order costing system. ABC applies overhead in…
A: Total manufacturing cost is the sum of direct materials , labor and applied overhead .Direct costs…
Q: On January 1, 2021, Bob purchased a 50 percent interest in ABC Partnership (ABC) from Tim by paying…
A: Partnership refers to a business entity incorporated by two or more partners in order to share the…
Q: 04: A cutting machine costs 60,000$ and has an anticipated 12000$ scrap value at the end of its 7…
A: Formula used: Depreciation rate = 100 / Useful life years Division of useful life years with 100…
Q: Pure Compe
A: The taxable total income of the individual taxpayer includes the income earned by the respective…
Q: On January 1, the Matthews Band pays $68,800 for sound equipment. The band estimates it will use…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Read the case study below and answer the questions that follow. Hendry Limited produces a…
A: Using variable costing approach, only variable costs are included in the product cost. Using…
Q: XYZ Corporation pays cash for its Federal Income Taxes, and pays cash to buy a new truck to use in…
A: Payment of taxes comes under cash flow from operating activities. Purchase of an asset is cash flow…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On January 1, 2021, Parent Co. acquired 80% of Subsidiary Inc.’s outstanding stocks for P1,600,000 cash. Subsidiary Inc.’s balance sheet shows P3,000,000 identifiable assets and P1,800,000 liabilities. All assets and liabilities of Setter are fairly valued, except for an undervalued equipment. The stock acquisition resulted to a goodwill of P700,000. Assume Parent had P5,100,000 total assets prior to the said transaction. NCI is measured at fair value. How much is the total assets in the consolidated balance sheet after the stock acquisition?On January 1, 2020, Pinnacle Corporation exchanged $3,568,500 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date, Strata had the following balance sheet: Cash $ 145,000 Accounts payable $ 453,000 Accounts receivable 356,000 Long-term debt 3,110,000 Inventory 432,000 Common stock 1,500,000 Buildings (net) 2,145,000 Retained earnings 1,365,000 Licensing agreements 3,350,000 Total assets $ 6,428,000 Total liabilities and equity $ 6,428,000 Pinnacle prepared the following fair-value allocation: Fair value of Strata (consideration transferred) $ 3,568,500 Carrying amount acquired 2,865,000 Excess fair value $ 703,500 to buildings (undervalued) $ 328,000 to licensing agreements (overvalued) (101,000 ) 227,000 to goodwill (indefinite life) $ 476,500…On May 31, 2021, Armstrong LTD paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: Current assets $ 900,000 Noncurrent assets 2,700,000 Total assets $3,600,000 Current liabilities $ 600,000 Long-term liabilities 500,000 Stockholders’ equity 2,500,000 Total liabilities and stockholders’ equity $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000. At December 31, 2021, Hall reports the following balance sheet information: Current assets $800,000 Noncurrent assets (including goodwill recognized in purchase) 2,400,000 Current liabilities (700,000) Long-term liabilities (500,000) Net assets $2,000,000 It is…
- On May 31, 2021, Oriole Company paid $3,675,000 to acquire all of the common stock of Pharoah Corporation, which became a division of Oriole. Pharoah reported the following balance sheet at the time of the acquisition: Current assets $ 945,000 Current liabilities $ 630,000 Noncurrent assets 2,835,000 Long-term liabilities 525,000 Stockholder's equity 2,625,000 Total assets $3,780,000 Total liabilities and stockholder's equity $3,780,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Pharoah was $3,255,000. At December 31, 2021, Pharoah reports the following balance sheet information: Current assets $ 840,000 Noncurrent assets (including goodwill recognized in purchase) 2,520,000 Current liabilities (735,000 ) Long-term liabilities (525,000 ) Net assets $2,100,000 It is determined that the fair value of the Pharoah division is $2,310,000.…On May 31, 2021, Ivanhoe Company paid $3,640,000 to acquire all of the common stock of Oriole Corporation, which became a division of Ivanhoe. Oriole reported the following balance sheet at the time of the acquisition: Current assets $ 936,000 Current liabilities $ 624,000 Noncurrent assets 2,808,000 Long-term liabilities 520,000 Stockholder's equity 2,600,000 Total assets $3,744,000 Total liabilities and stockholder's equity $3,744,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Oriole was $3,224,000. At December 31, 2021, Oriole reports the following balance sheet information: Current assets $ 832,000 Noncurrent assets (including goodwill recognized in purchase) 2,496,000 Current liabilities (728,000 ) Long-term liabilities (520,000 ) Net assets $2,080,000 It is determined that the fair value of the Oriole division is $2,288,000. 1).…At the beginning of 2022, CPA Company purchased 20% of ACCA Corp’s ordinary shares outstanding for P3,000,000. Transaction cost incurred is 10% of the purchase price of the shares. at the data of acquisition, the carrying amount of the identifiable net assets were equal to their fair values. During 2022, the investee reported net income of 3,500,000 and paid cash dividend of P2,000,000. In 2023, Oriental reported loss of P500,000 and issued 10% stock dividends a. Investment Income for 2022 b. Carrying Amount of the investment in Associate on December 31, 2022 c. Investment Loss in 2023?
- On January 1, 2024, Coronado Company purchased 8,208 shares of Whispering Company's common stock for $124,000. Immediately after the stock acquisition, the statements of financial position of Coronado and Whispering appeared as follows: Assets Cash Accounts receivable Inventory Investment in Whispering Company Plant assets Accumulated depreciation-plant assets Total Liabilities and Owners' Equity Current liabilities Mortgage notes payable Common stock, $10 par value Other contributed capital Retained earnings Total (a2) Coronado $38,250 57,310 42,270 124,000 144,750 (56,310) $350,270 : Whispering $17,170 28,620 25,000 107,510 (19,510) $158,790 $17,080 40,190 111,980 $ 126,260 54,760 $350,270 Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. Parent Share $ $26,620 $ 102,600 16,790 12,780…On January 1, 2021, Parent Co. acquired 80% of Subsidiary In's outstanding stocks for P1,600,000 cash. Subsidiary Inc's balance sheet shows P3,000,000 identifiable assets and P1,800,000 liabilities. All assets and liabilities of Setter are fairly valued, except for an undervalued equipment. The stock acquisition resulted to a goodwill of P700,000. Assume Parent had P5,100,000 total assets prior to the said transaction. NCI is measured at fair value. How much is the total assets in the consolidated balance sheet after the stock acquisition?North Land Company acquired 30,000 shares of the ordinary share of Shaver Corp. in July 2021. This acquisition gave North Land Company significant influence over Shaver Corp. On December 2021, Shaver announced a P100,000 net income for 2021 and declared a cash dividend of P.50 per share on its 100,000 shares of outstanding ordinary share. How much dividend income will North Land Company recognize in its Statement of Profit or Loss?
- On January 1, 2023, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $1,993,850 cash. On the acquisition date, GaugeRite had the following balance sheet: Cash $ 65,000 Accounts payable $ 126,000 Accounts receivable 108,000 Long-term debt 1,003,000 Land 772,000 Common stock 1,030,000 Equipment (net) 1,905,000 Retained earnings 691,000 Total assets $ 2,850,000 Total liabilities and equity $ 2,850,000 At the acquisition date, the following allocation was prepared: Fair value of consideration transferred $ 1,993,850 Book value acquired 1,721,000 Excess fair value over book value 272,850 To in-process research and development $ 63,250 To equipment (8-year remaining life) 77,600 140,850 To goodwill (indefinite life) $ 132,000 Although at acquisition date Procise had expected $63,250 in future benefits from GaugeRite’s in-process research and development project, by the end of 2023 it was apparent…Stellar Co. acquired 25% of the 500,000 shares of outstanding common stock of Overload Inc. on December 31, 2020. The purchase price was $3,550,000. Overload declared and paid $1.10 per share cash dividends on June 18, 2021, and on November 29, 2021. Overload reported net income of $1,200,000 for 2021. The fair value of Overload common stock was $28 per share at December 31, 2021. (a) Prepare the journal entries for Stellar Co. for 2021, assuming that Stellar cannot exercise significant influence over Overload. The securities should be classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount…On January 1, 2020, HULK CORP. acquired 70% of outstanding ordinary shares of HALL INC. at a price of P210,000. On the same date, the net assets of HALL INC. were reported at P260,000. On January 1, 2020 HULK reported retained earnings of P2,000,000 while HALL reported retained earnings of P200,000. All of the assets and liabilities of HALL are fairly valued except machinery which is undervalued by P80,000 and in inventory which is overvalued by P10,000. The said machinery has a remaining useful life of four years while 40% of the said inventory remained unsold at the end of 2020. For the year ended December 31, 2020, HULK reported net income of P1,000000 and declared dividends of P150,000 in the separate financial statements while HALL reported net income of P150,000 and declared dividends of P20,000 in the separate financial statements. HULK accounted the investment in HALL using cost method in the separate financial statements. 3. What is the non-controlling interest in net assets…