On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for P975,000. On this date, the carrying amount of XYZ's net assets was P1,000,000. The fair values of XYZ's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) with fair values of P100,000 in excess of their carrying amount. The fair value of the noncontrolling interest in XYZ on January 1, year 1, was P250,000. For the year ended December 31, year 1, XYZ had net income of P190,000 and paid cash dividends totaling P125,000. a. In the January 1, year 1 consolidated balance sheet, goodwill should be reported at? b. In the December 31, year 1 consolidated balance sheet, noncontrolling interest should be reported at?

On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for P975,000. On this date, the carrying amount of XYZ's net assets was P1,000,000. The fair values of XYZ's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) with fair values of P100,000 in excess of their carrying amount. The fair value of the noncontrolling interest in XYZ on January 1, year 1, was P250,000. For the year ended December 31, year 1, XYZ had net income of P190,000 and paid cash dividends totaling P125,000. a. In the January 1, year 1 consolidated balance sheet, goodwill should be reported at? b. In the December 31, year 1 consolidated balance sheet, noncontrolling interest should be reported at?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

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On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for P975,000. On this date, the carrying amount of XYZ's net assets was P1,000,000. The fair values of XYZ's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) with fair values of P100,000 in excess of their carrying amount. The fair value of the noncontrolling interest in XYZ on January 1, year 1, was P250,000. For the year ended December 31, year 1, XYZ had net income of P190,000 and paid cash dividends totaling P125,000. In the December 31, year 1 consolidated balance sheet, noncontrolling interest should be reported at?
January 1, 20x4, Payne Corp. purchased 70% of Shayne Corp.’s P10 par common stock for P900,000. On this date, the carrying amount of Shayne ‘s net assets was P1,000,000. The fair values of Shayne’s identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were P200,000 in excess of the carrying amount. For the year ended December 31, 20x4, Shayne had net income of P150,000 and paid cash dividends totaling P90,000. Excess attributable to plant assets is amortized over 10 years. In the December 31, 20x4 , consolidated balance sheet, non-controlling interest should be reported at
On January 1, 20X1, Payne Corp. purchased 70% of Shayne Corp.'s $10 par common stock for $900,000. On this date, the carrying amount of Shayne's net assets was $1,000,000. The fair values of Shayne's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were $200,000 in excess of the carrying amount. For the year ended December 31, 20X1, Shayne had net income of $150,000 and paid cash dividends totaling $90,000. Excess attributable to plant assets is amortized over 10 years. In the December 31, 20X1, consolidated balance sheet, noncontrolling interest should be reported at ____. Check Number – Excess of FV over BV = $285,714 a. $282,714 b. $300,500 c. $397,714 d. $345,500
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On January 1, year 1, ABC Corporationpurchased 80% of XYZ Corporation's P10par common stock for P975,000. On thisdate, the carrying amount of XYZ's netassets was P1,000,000. The fair values ofXYZ's identifiable assets and liabilities werethe same as their carrying amounts exceptfor plant assets (net) with fair values ofP100,000 in excess of their carryingamount. The fair value of the noncontrollinginterest in XYZ on January 1, year 1, wasP250,000. For the year ended December 31,year 1, XYZ had net income of P190,000 andpaid cash dividends totaling P125,000. Inthe January 1, year 1 consolidated balancesheet, goodwill should be reported at:
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Use this problem for the next two questions: On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for P975,000. On this date, the carrying amount of XYZ's net assets was P1,000,000. The fair values of XYZ's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) with fair values of P100,000 in excess of their carrying amount. The fair value of the noncontrolling interest in XYZ on January 1, year 1, was P250,000. For the year ended December 31, year 1, XYZ had net income of P190,000 and paid cash dividends totaling P125,000. In the January 1, year 1 consolidated balance sheet, goodwill should be reported at ?
Use this problem for the next two questions: On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for P975,000. On this date, the carrying amount of XYZ's net assets was P1,000,000. The fair values of XYZ's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) with fair values of P100,000 in excess of their carrying amount. The fair value of the noncontrolling interest in XYZ on January 1, year 1, was P250,000. For the year ended December 31, year 1, XYZ had net income of P190,000 and paid cash dividends totaling P125,000. In the January 1, year 1 consolidated balance sheet, In the December 31, year 1 consolidated balance sheet, noncontrolling interest should be reported at ?
. On January 1, 2011, Payne Corp. purchased 70% of Shayne Corp.'s P10 par common stock for P900,000. On this date, the carrying amount of Shayne's net assets was P1,000,000. The fair values of Shayne's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were P200,000 in excess of the carrying amount. For the year ended December 31, 2011, Shayne had net income of P150,000 and paid cash dividends totaling P90,000. Excess attributable to plant assets is amortized over 10 years. In the December 31, 2011, consolidated balance sheet, non-controlling interest on a full-fair value basis should be reported at
At the beginning of current year, Cinnamon Company purchased 40% of the ordinary shares of another entity for P3,000,000 when the net assets acquired amounted to P6,000,000.At acquisition date, the carrying amounts of the identifiable assets and liabilities of the investee were equal to their fair value, except for the equipment for which the fair value was P1,500,000 greater than carrying amount and inventory whose fair value was P500,000 greater than cost.The equipment has a remaining life of 4 years and the inventory was all sold during the current year.The investee reported net income of P4,000,000 and paid P1,000,000 dividends during the current year.Required;1. Prepare journal entries for the current year2. compute the investment income for the current year.
On May 1, 2021. P Corp. purchased 75% of S Cos P10 par ordinary shares for P990,000. On this date, the carrying amount of S's net assets was P1,000,000. The fair values of S Co.'s identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were P150,000 in excess of the carrying amount. The estimated remaining life of the asset is 5 years. For the year ended December 31, 2021, S had net income of P320,000 and paid cash dividends to P Corp. of P115.000 (all coming from post-acquisition Retained Earnings). Loss on impairment of goodwill in 2021 amounted to P20,000. P Corp. uses the fair value method in measuring non-controlling Interest. Revenues were earned evenly throughout the year. Determine the goodwill on the December 31, 2021 consolidated balance sheet.