Honda Company acquired 70% of the outstanding stock of Hyundai Co. on January 1, 2022. The consolidated balance sheet prepared immediately after the business combination contained the following: Current Assets - 146,000 Fixed Assets - Net - 360,000 Goodwill - 18,100 Liabilities - 28,000 Capital Stock- 350,000 Retained Earnings - 111,000 NCI - 35,100 On acquisition date, Hyundai's Fixed assets were under depreciated by 10,000. The balance of the excess payment was ascribed to goodwill. 24. How much is the cost of investment paid by Honda in acquiring 70% interest in Hyundai?

Honda Company acquired 70% of the outstanding stock of Hyundai Co. on January 1, 2022. The consolidated balance sheet prepared immediately after the business combination contained the following: Current Assets - 146,000 Fixed Assets - Net - 360,000 Goodwill - 18,100 Liabilities - 28,000 Capital Stock- 350,000 Retained Earnings - 111,000 NCI - 35,100 On acquisition date, Hyundai's Fixed assets were under depreciated by 10,000. The balance of the excess payment was ascribed to goodwill. 24. How much is the cost of investment paid by Honda in acquiring 70% interest in Hyundai?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Honda Company acquired 70% of the outstanding stock of Hyundai Co. on January 1, 2022. The consolidated balance sheet prepared immediately after the business combination contained the following: Current Assets - 146,000 Fixed Assets - Net - 360,000 Goodwill - 18,100 Liabilities - 28,000 Capital Stock - 350,000 Retained Earnings - 111,000 NCI - 35,100 On acquisition date, Hyundai's Fixed assets were under depreciated by 10,000. The balance of the excess payment was ascribed to goodwill. 25. How much should be the underlying equity of Honda in the net assets of Hyundai?
On January 1, 2024, Windsor Company purchased 8,896 shares of Sheridan Company's common stock for $131,000. Immediately after the stock acquisition, the statements of financial position of Windsor and Sheridan appeared as follows: Assets Windsor Sheridan Cash $40,850 $20,370 Accounts receivable 50,180 32,780 Inventory 44,020 26,230 Investment in Sheridan Company 131,000 Plant assets 160,360 101,030 Accumulated depreciation-plant assets (55,790) (18,940) Total $370,620 $161,470 Liabilities and Owners' Equity Current liabilities $16,910 $23,570 Mortgage notes payable 40,080 Common stock, $10 par value 112,700 111,200 Other contributed capital 125,210 15,650 Retained earnings 75,720 11,050 Total $370,620 $161,470 Prepare a consolidated balance sheet workpaper as of January 1, 2024. Cash WINDSOR COMPANY AND SUBSIDIARY SHERIDAN Consolidated Balance Sheet Workpaper January 1, 2024 Windsor Sheridan Eliminations Noncontrolling Consolidated Company Company Debit Credit Interest Balance 40.850…
On January 1, 2024, Windsor Company purchased 8,896 shares of Sheridan Company's common stock for $131,000. Immediately after the stock acquisition, the statements of financial position of Windsor and Sheridan appeared as follows: Assets Windsor Sheridan Cash $40,850 $20,370 Accounts receivable 50,180 32,780 Inventory 44,020 26,230 Investment in Sheridan Company 131,000 Plant assets 160,360 101,030 Accumulated depreciation-plant assets (55,790) (18,940) Total $370,620 $161,470 Liabilities and Owners' Equity Current liabilities $16,910 $23,570 Mortgage notes payable 40,080 Common stock, $10 par value 112,700 111,200 Other contributed capital 125,210 15,650 Retained earnings 75,720 11,050 Total $370,620 $161,470 (a1) (a2) 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 $ Non-…
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LGM Motors acquired 80% of NS Service Center outstanding shares on January 1, 2022 by paying cash. The consolidated statement of financial position showed the following balances at the date of acquisition. Consolidated Balances Amount Total Assets 15,670,000 Total Liabilities 4,575,000 Total Shareholder’s Equity ? The book value of the net assets of NS Services Center is P4,500,000. The assets of NS Service Center are fairly valued except for the following: Patent on the product that is deemed worthless, P50,000. Goodwill of P150,000. Unrecognized identifiable R&D of P75,000. The fair value of the non-controlling interest is 705,000 and the book value of LGM’s equity balance is P9,500,000. On December 31, 2022 the following information were provided by NS Services Center: Net income of 400,000 was Patents remaining useful life is 4 Pre-existing goodwill presented above was impaired with a current value of 120,000. Dividends were declared…
On January 1, 2019. P Corporation purchased 75% of the common stock of S Company. Separate balance sheet data for the companies at the combination date are given below: P Corporation Company P9,600 57,600 52,800 31,200 280,000 (96,000) Cash P82,400 10,400 15,200 12,800 120,000 (24,000) Accounts receivable Inventory Land Plant assets Accumulated depreciation Investment in Ucky Total assets Accounts payable Capital stock Retained earnings Total equities 156,800 P492,000 P216,800 P82,400 320,000 89,600 P492.000 P216,800 P56,800 120,000 40,000 At the date of combination the book values of S Company's net assets was equal to the fair value of the net assets except for S Company's inventory which has a fair value of P24,000. Indicate in each of the questions what the consolidated balance would be for the requested account, assuming the amount assigned to NCI is the proportionate share in the fair value of net assets. 1. What amount of inventory will be reported а. Р52,800 b. Р68,000 c.…
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On May 31, 2018, Armstrong Company 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 Current liabilities $ 600,000 Noncurrent assets 2,700,000 Long-term liabilities 500,000 Stockholders' equity 2,500,000 Total liabilities and Total assets $3,600,000 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, 2018, Hall reports the following balance sheet information: Current assets $ 800,000 Noncurrent assets (including goodwill recognized in purchase) 2,600,000 Current liabilities (700,000) Long-term liabilities (500,000) Net assets $2,200,000 It is determined that the fair value of the Hall division is $2,300,000. Instructions (a) Compute the amount of goodwill recognized, if any, on May 31, 2018. (b) Determine the…