Direction: Provide what is asked. Show your solution. 1. On January 1, 20x1, ABC Co. acquired...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Direction: Provide what is asked. Show your solution. 1. On January 1, 20x1, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P15 per share. On this date, XYZ's total equity was P74,000. The investment in subsidiary is measured at cost. XYZ's assets and liabilities approximate their fair values on January 1, 20x1 except for the following: XYZ, Inc. Carrying amounts Fair values Fair value adjustments Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 40.000 48,000 8,000 Total 63,000 79,000 16,000 There were no intercompany transactions during 20x1. However, it was determined that goodwill is impaired by P1,000. How much is the goodwill attributable to NCI as of December 31, 20x1 2.On January 1, 20x2, ABC Co. sells 60% out of its 80% interest in XYZ, Inc. for P100,000. ABC's remaining 20% interest in XYZ has a fair value of P25,000. This gives ABC significant influence over XYZ. The statements of financial position immediately before the sale are shown below: Statements of financial position As at January 1, 20x2 ABC Co. XYZ, Inc. Consolidated ASSETS Cash 23,000 57,000 80,000 Accounts receivable 75,000 22,000 97,000 Inventory 105,000 15,000 120,000 Investment in subsidiary 75,000 -- Equipment 200,000 50,000 260,000 Accumulated depreciation (60,000) (20,000) (84,000) Goodwill - 3,000 TOTAL ASSETS 418,000 124,000 476,000 Equipment 200,000 50,000 260,000 Accumulated depreciation (60,000) (20,000) (84,000) Goodwill --3,000 TOTAL ASSETS 418,000 124,000 476,000 LIABILITIES AND EQUITY Accounts payable 43,000 30,000 73,000 Bonds payable 30,000-30,000 Total liabilities 73,000 30,000 103,000 Share capital 170,000 50,000 170,000 Share premium 65,000-65,000 Retained earnings 110,000 44,000 118,000 Non-controlling interest -- 20,000 Total equity 345,000 94,000 373,000 TOTAL LIAB. & EQTY. 418,000 124,000 476,000 How much is the gain (loss) on the disposal? 3.Selected information from the separate and consolidated balance sheets and income statements of Pare, Inc. and its subsidiary, Shel Co., as of December 31, 1994, and for the year then ended is as follows: Pare Shel Consolidated Balance sheet accounts: Accounts receivable 52,000 38,000 78,000 Inventory 60,000 50,000 104,000 Income statement accounts: Revenues 400,000 280,000 616,000 Cost of goods sold 300,000 220,000 462,000 Gross profit 100,000 60,000 154,000 Additional information: During 1994, Pare sold goods to Shel at the same markup on cost that Pare uses for all sales. At December 31, 1994, what was the amount of Shel's payable to Pare for intercompany sales? Use the following information for the next five questions: Oblong Co. owns 80% interest in Round, Inc The statements of financial position of the entries on January 1, 20x1 are shown below: Oblong Co. Round, Inc. Consolidated Investment in subsidiary 180,000 -- Other assets 823,200 297,600 1,135,200 Goodwill -- 7,200 Total Assets 1,003,200 297,600 1,142,400 Accounts payable 175,200 72,000 247,200 Share capital 564,000 120,000 564,000 Retained earnings 264,000 105,600 283,200 Equity attributable to owners of patent 847,200 Non-controlling interest 48,000 Total equity 828,000 225,600 895,200 Total Liabilities and Equity 1,003,200 297,600 1,142,400 Direction: Provide what is asked. Show your solution. 1. On January 1, 20x1, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P15 per share. On this date, XYZ's total equity was P74,000. The investment in subsidiary is measured at cost. XYZ's assets and liabilities approximate their fair values on January 1, 20x1 except for the following: XYZ, Inc. Carrying amounts Fair values Fair value adjustments Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 40.000 48,000 8,000 Total 63,000 79,000 16,000 There were no intercompany transactions during 20x1. However, it was determined that goodwill is impaired by P1,000. How much is the goodwill attributable to NCI as of December 31, 20x1 2.On January 1, 20x2, ABC Co. sells 60% out of its 80% interest in XYZ, Inc. for P100,000. ABC's remaining 20% interest in XYZ has a fair value of P25,000. This gives ABC significant influence over XYZ. The statements of financial position immediately before the sale are shown below: Statements of financial position As at January 1, 20x2 ABC Co. XYZ, Inc. Consolidated ASSETS Cash 23,000 57,000 80,000 Accounts receivable 75,000 22,000 97,000 Inventory 105,000 15,000 120,000 Investment in subsidiary 75,000 -- Equipment 200,000 50,000 260,000 Accumulated depreciation (60,000) (20,000) (84,000) Goodwill - 3,000 TOTAL ASSETS 418,000 124,000 476,000 Equipment 200,000 50,000 260,000 Accumulated depreciation (60,000) (20,000) (84,000) Goodwill --3,000 TOTAL ASSETS 418,000 124,000 476,000 LIABILITIES AND EQUITY Accounts payable 43,000 30,000 73,000 Bonds payable 30,000-30,000 Total liabilities 73,000 30,000 103,000 Share capital 170,000 50,000 170,000 Share premium 65,000-65,000 Retained earnings 110,000 44,000 118,000 Non-controlling interest -- 20,000 Total equity 345,000 94,000 373,000 TOTAL LIAB. & EQTY. 418,000 124,000 476,000 How much is the gain (loss) on the disposal? 3.Selected information from the separate and consolidated balance sheets and income statements of Pare, Inc. and its subsidiary, Shel Co., as of December 31, 1994, and for the year then ended is as follows: Pare Shel Consolidated Balance sheet accounts: Accounts receivable 52,000 38,000 78,000 Inventory 60,000 50,000 104,000 Income statement accounts: Revenues 400,000 280,000 616,000 Cost of goods sold 300,000 220,000 462,000 Gross profit 100,000 60,000 154,000 Additional information: During 1994, Pare sold goods to Shel at the same markup on cost that Pare uses for all sales. At December 31, 1994, what was the amount of Shel's payable to Pare for intercompany sales? Use the following information for the next five questions: Oblong Co. owns 80% interest in Round, Inc The statements of financial position of the entries on January 1, 20x1 are shown below: Oblong Co. Round, Inc. Consolidated Investment in subsidiary 180,000 -- Other assets 823,200 297,600 1,135,200 Goodwill -- 7,200 Total Assets 1,003,200 297,600 1,142,400 Accounts payable 175,200 72,000 247,200 Share capital 564,000 120,000 564,000 Retained earnings 264,000 105,600 283,200 Equity attributable to owners of patent 847,200 Non-controlling interest 48,000 Total equity 828,000 225,600 895,200 Total Liabilities and Equity 1,003,200 297,600 1,142,400
Expert Answer:
Answer rating: 100% (QA)
1 To calculate goodwill the fair value of the assets and liabilities of the acquired business is add... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Compare the number of new businesses per 10,000 residents between Professional and Agriculture SA3s (both in 2011). The p-value (2 decimal places) obtained after performing a one-tailed t-test for...
-
Scenario A. Percentage of Sales: Apple Company reported the following balances as of December 31, 20X1, before any year-end adjustments: Accounts receivable Allowance for doubtful accounts Sales The...
-
Which of the following about the set of state in a dynamical system is not generally correct? It (A) Always reveals full information of current status (B) Is of one-to-one mapping to the set of...
-
When VGS = 0.5 VGS(off) . gm. is -------------- the maximum value. Select one: a. one-fourth b. three-fourths c. equal to d. one-half
-
a. Stomach cancer and consumption of barbecued foods, which are known to contain carcinogenic (cancercausing) substances. b. Self reported level of stress and blood pressure.
-
Find the coefficient of the term in x in the expansion of (1 6x) 7 .
-
72 Find the prime factorization of the given number.
-
You have applied for a cost accounting position with Chelsea Containers. The company controller has asked all candidates to take a quiz to demonstrate their knowledge of job order costing. Chelsea's...
-
Analyze impacts of exchange rate on Apple Inc.'s performance for determining if a loss occurred because of fluctuations or devaluations of foreign currencies. Provide examples from 2021 reports to...
-
Seawater with a concentration of 8000 g/m3 is pumped into a well-mixed tank at a rate of 0.6 m3/hr. Because of faulty design work, water is evaporating from the tank at a rate of 0.025 m3/hr. The...
-
Use Excel for this question: If a fixed asset can be sold for a $300,000 salvage value at the end of a project, the tax rate is 20%, the ending book value at the end of the project is $150,000, and...
-
Silver Airlines, a privately held firm, is looking to perform a Initial Public Offering (IPO). They have hired you to value the firm using discounted cash flows. Since Silver is not traded in the...
-
If the sides of a triangle are 24 cm, 25 cm and 7 cm, then find the area of the triangle using Heron's formula
-
Objective 3.9 - Doubling Time and Half-Life The hourly wage of some Toyota automobile assembly line workers is being increased annually by the same percentage If their wage went from $6.90 to $12.01...
-
What evidence suggests that the warring entities are interested or even open to a diplomatic solution in the DRC? (please cite references) What are the feature of the UK political system?
-
How do cathodic protection (CP) systems work in mitigating corrosion in underground pipelines and marine structures, and what are the key considerations in designing and maintaining effective CP...
-
If an entire cycle of grating falls on a single cone, what will we see? Group of answer choices only a gray field an inverted U shape pattern red if it falls on a red cone motion if it falls on an...
-
9.Consider the reaction 3NO2(g)+H2O=2HNO3(aq)+NO(g) where Delta H=-137 kJ.How many kilojoules are released when 92.3g of NO2 reacts?
-
The following comment appeared in the notes of Mona Corporation's annual report: "Such distributions, representing proceeds from the sale of Sarazan, Inc. were paid in the form of partial liquidating...
-
Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 50 units that cost $34 each. During June, the company purchased 150 units at $34 each, returned 6 units for...
-
Ortago S.A.'s 10 par ordinary shares are selling for 110 per share. Four million shares are currently issued and outstanding. The board of directors wishes to stimulate interest in Ortago S.A....
-
Malia has invested in a mutual fund. She wants to add to her investment on a regular basis and is trying to decide which purchase option to use. Her mutual fund offers a voluntary savings plan, a...
-
Explain why corporations may prefer to issue bonds to raise funds for their operations.
-
Explain the meaning of bond ratings and their impact on buying decisions.
Study smarter with the SolutionInn App