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On 1/1/2020 P Company acquired an ownership in S company and paid 66000 JD, NCI on 1/1 is 34000 JD. Compute ownership percentage. Answer: Company

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On 1/1/2020 P Company acquired an ownership in S company and paid 66000 JD, NCI on 1/1 is 34000 JD. Compute ownership percentage. Answer: Company Pacquired 80% of the shares of Company S for 368000 JD cash. Book value of equity for S is 470000 JD. Differences between IV and BV will be: Select one: O a. Cr. 15000 O b. Cr. 13750 O c. Cr. 12500 O d. Cr. 10000 If normal earnings is 115000 JD future earnings 121000 JD discount rate 10%. Compute goodwill. Select one: a. 60000 O b. 70000 O c. 80000 O d. 90000 If company A acquired the net assets of company B for a price of 185000 JD through issuing 3000 shares par value 10 at a price of 21 JD per share and issuing bonds 95000 JD and the remaining with cash. The amount of cash paid is: Select one: O a. 27000 b. 24000 c. 21000 O d. 18000 P Company acquired 80% of the shares of Company S for 160000 JD cash. The equity of S was: capital 110000 JD other capital 40000 JD RE (12000) JD treasury stocks 5000. Differences between IV and BV is: Select one: a. Dr. 33000 b. Dr. 50000 c. Dr. 67000 O d. Dr. 38000 On 1/1/2021 P company acquired 95% of S company. Accounts receivable balance for P company is 15000 JD, Accounts receivable balance for S company is 12000 JD. P sold inventory to S on account for 6000 JD, but both companies did not record the transaction yet. Compute consolidated balance for accounts receivable. Select one: a. 21000 O b. 23000 O c. 27000 O d. 20000 On 1/1/2020 Company A acquired the net assets of Company B for a price of 178000 JD, the fair value of net assets of company B is 159000 JD. Company A also agreed to pay an additional 4000 JD if net income is higher than 70000 JD in year 1. On 1/1/2021 the fair value of unit is 197000 JD carrying value of net assets (excluding goodwill) 178000 JD fair value of net assets 177000 JD. Compute impairment loss. Answer: Company A plans to acquire the net assets of Company B, the following data are available from Company B: net income in year 1: 120000 JD, year 2: 140000 JD. Assets include: machines with FV 18% lower than book value, equipment with FV 12% higher than book value, trademark with 10% lower than book value, extraordinary loss 900 (year 1), gain on asset sale 1200 (year 2), machines depreciation (each year) 8000 JD, equipment depreciation (each year) 15000 JD, trademark amortization (each year) 7000 JD, rent exp. 1500 JD (each year). Compute future earnings. Answer: On 1/1/2021 P company acquired 90% of S company and 60% of R company. Accounts payable balance for P company is 19000 JD, and for S company 12000 JD, and for R company 8000 JD. P sold inventory to S on account for 6000 JD, S sold P. on account for 3500 JD, S sold Ron account for 4500 JD, R sold P on account for 1500 JD. Compute consolidated balance for accounts payable. Select one: O a. 20500 O b. 21500 c. 22500 O d. 23500 On 1/1 the balances of Retained earnings for P is 110000 JD and for S is 50000 JD. Company Sowed Company Pinterest amount of 9000 JD, S recorded accrued interest payable but company P did not record it yet. After recording eliminating entries the consolidated balance for Retained Earnings is: Answer: On 1/1/2020 P company acquired 75% of S company and 65% of T company. Notes receivable balances for P company is 45000 JD, and for s company is 20000 JD, and for I company is 18000 JD. P issued notes receivable to S and T for 11000 JD and 14000 JD respectively. Compute the consolidated balance for Notes receivable. Select one: O a. 56000 O b. 57000 O c. 58000 O d. 59000 Company Pacquired 80% of the shares of Company S for 186000 JD cash. Compute NCI on 1/1. Select one: a. 45000 O b. 45500 O c. 46000 O d. 46500 On 1/1/2020 P Company acquired all the net assets of S Company. P Company also agreed to pay an additional $90000 to the former stockholders of S Company if the average earnings next two years exceeded $800000. The entry recorded if target is not met: Select one: a. Dr. Cash 90000 Cr. Income 90000 O b. Dr. Contingent liability 90000 Cr. Cash 90000 c. Dr. Goodwill 90000 Cr. Contingent liability 90000 O d. Dr. Contingent liability 90000 Cr. Income 90000 On 1/1/2020 Company A acquired the net assets of Company B for a price of 294,000 JD, the fair value of net assets of company B is 180,000 JD. On 1/1/2021 the fair value of unit is 560,000 JD carrying value of net assets (excluding goodwill) 480,000 JD fair value of net assets 460,000 JD. Compute impairment loss. Select one: a. 12000 O b. 14000 O c. 16000 O d. 18000 On 1/1/2021 P company acquired 80% of S company. Accounts receivable balance for P company is 27000 JD, Accounts receivable balance for S company is 10000 JD. S sold inventory to P on account for 10000 JD. Compute consolidated balance for accounts receivable. Select one: O a. 26000 O b. 27000 c. 28000 O d. 29000 Cash balances for P is 60000 JD and for S is 45000 JD. Company P advanced 15000 JD to Company S, but Company S did not record the transaction yet. After recording the elimination entries, the consolidated balance of cash is: Select one: O a. 120000 b. 105000 c. 60000 d. 45000 Pedro Co. is planning to acquire the net assets of Seth Co. To compute price for acquisition Pedro Co. maid the following assumptions: FV assets: 18,300,000 JD, FV liabilities: 14,000,000 JD, future earnings 720,000 JD, ROA: 15%, discount rate 25%. Compute price for acquisition. Select one: a. 4,520,000 b. 4,560,000 c. 4,600,000 d. 4,640,000 If fair value of net assets for company B is 180000 JD, compute price company A must pay to achieve bargain gain of 19000 JD. Select one: a. 164000 O b. 163000 O c. 162000 O d. 161000 Company P invested 400000 JD in bonds, of which are 47000 JD investment in bonds issued by Company S. After recording the eliminating entries, the consolidated balance of investment in bonds is: Select one: a. 354000 O b. 353000 c. 352000 O d. 351000

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