{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T11:02:52-04:00", "answer_date": "2024-05-26 11:02:52", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1735533", "url": "\/study-help\/questions\/case-on-januari-2-20x3-pt-mega-acquired-80-of-1735533", "question_creation_date_js": "2024-05-26T11:02:52-04:00", "question_creation_date": "May 26, 2024 11:02 AM", "meta_title": "[Solved] CASE On Januari 2, 20X3, PT Mega acquired | SolutionInn", "meta_description": "Answer of - CASE On Januari 2, 20X3, PT Mega acquired 80% of PT Mini's ownership by issuing bonds with a par value of Rp 400.000.0 | SolutionInn", "meta_keywords": "case,januari,2,20x3,pt,mega,acquired,80%,mini,s,ownership,issuing", "question_title_h1": " CASE On Januari 2, 20X3, PT Mega acquired 80% of PT Mini's ownership by issuing bonds with a par value of Rp 400.000.000 and", "question_title": " CASE On Januari 2, 20X3, PT Mega acquired 80% of PT", "question_title_for_js_snippet": "CASE On Januari 2, 20X3, PT Mega acquired 80 of PT Mini's ownership by issuing bonds with a par value of Rp 400 000 000 and fair value of Rp420 000 000 and paying cash of Rp100 000 000 PT Mega also paid cost related to acquisition of Rp25 000 000 At acquisition date, PT Mini reported common stock of Rp200 000 000, additional paid in capital of Rp200 000 000, and retained earnings of Rp150 000 000 respectively Fair value of noncontrolling interest was Rp 130 000 000 On Januari 2, 20X3, carrying amount and fair value of Mini 's assets and liabilities were equal, except for Account Inventory Carrying Amount Fair Value 75 000 000 Land Equipment (net) Bonds Payable 70 000 000 150 000 000 50 000 000 100 000 000 200 000 000 46 000 000 95 000 000 Mini sold all inventory it held at the beginning of 20X3 during 20X3 Equipment held by Mini at the date of acquisition had a remaining economic life of four years Mega and Mini use straight line method as depreciation method At the acquisition date, the bonds payable had remaining maturity of five years The difference between fair value and carrying amount of bond payable is amortized of Rp1 000 000 for 20X3 Management of Mega reviews the goodwill for impairment in the end of each year At December 31, 20X3, the management concluded that goodwill from its acquisition of Mini shares had been impaired and incurred impairment loss of Rp20 000 000 Mega accounts for its investment in Mini using equity method Required 1 Provide differential incurred at acquisition date (January 2, 20X3) 2 Provide the journal entries recorded by Mega during 20X3 on its books if it accounts for its investment in Mini using Equity method 3 Provide the consolidating (eliminating) entries needed at December 31, 20X3, to prepare consolidated financial statements ", "question_description": "\"image", "transcribed_text": "CASE On Januari 2, 20X3, PT Mega acquired 80% of PT Mini's ownership by issuing bonds with a par value of Rp 400.000.000 and fair value of Rp420.000.000 and paying cash of Rp100.000.000. PT Mega also paid cost related to acquisition of Rp25.000.000. At acquisition date, PT Mini reported common stock of Rp200.000.000, additional paid-in capital of Rp200.000.000, and retained earnings of Rp150.000.000 respectively. Fair value of noncontrolling interest was Rp 130.000.000. On Januari 2, 20X3, carrying amount and fair value of Mini 's assets and liabilities were equal, except for: Account Inventory Carrying Amount Fair Value 75.000.000 Land Equipment (net) Bonds Payable 70.000.000 150.000.000 50.000.000 100.000.000 200.000.000 46.000.000 95.000.000 Mini sold all inventory it held at the beginning of 20X3 during 20X3. Equipment held by Mini at the date of acquisition had a remaining economic life of four years. Mega and Mini use straight-line method as depreciation method. At the acquisition date, the bonds payable had remaining maturity of five years. The difference between fair value and carrying amount of bond payable is amortized of Rp1.000.000 for 20X3. Management of Mega reviews the goodwill for impairment in the end of each year. At December 31, 20X3, the management concluded that goodwill from its acquisition of Mini shares had been impaired and incurred impairment loss of Rp20.000.000. Mega accounts for its investment in Mini using equity method Required: 1. Provide differential incurred at acquisition date (January 2, 20X3). 2. Provide the journal entries recorded by Mega during 20X3 on its books if it accounts for its investment in Mini using Equity method 3. Provide the consolidating (eliminating) entries needed at December 31, 20X3, to prepare consolidated financial statements.", "related_book": { "title": "Financial and Managerial Accounting the basis for business decisions\t ", "isbn": "0077664078, 978-0077664077, 78111048, 978-0078111044", "edition": "16th edition", "authors": "Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/290.jpg", "uri": "\/textbooks\/financial-and-managerial-accounting-the-basis-for-business-decisions-16th-edition-290", "see_more_uri": "" }, "free_related_book": { "isbn": "B07HKX2RR3", "uri": "\/textbooks\/franklin-sports-5000-mens-plus-womens-indoor-basketballs-official-size-29-5-inch-b07hkx2rr3-107565", "name": "Franklin Sports 5000 Mens Plus Womens Indoor Basketballs Official Size 29 5 Inch", "edition": "" }, "question_posted": "2024-05-26 11:02:52", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/classify-each-of-the-following-items-as-a-public-good-a", "description": "Classify each of the following items as a public good, a private good, a mixed good, or a common resource. 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