The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue: • Professional fees of P40,000. • Internal management time in managing the process of P30,000. These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%. In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will be O P311,000 O P332,000 O P360,000 O P320,000
Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…
A: GIVEN On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary…
Q: If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value…
A: Computation of the total assets at the date of acquisition:
Q: Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a…
A: Number of bonus shares = 30000 x 20%= 6000 shares Number of shares as on December 31, Year 3 =…
Q: balance in Tuao’s investment in Abulug Company
A: Balance of investment in other entity = Cost of investment + (Profit of the other entity *…
Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…
A: The investment in shares of another company gets increased by net profit and gets decreased by…
Q: Cory Company issued 120,000 shares of its P10 par ordinary to Fuzzy Inc. in lieu of a real estate…
A: Share Premium account will be credited with the difference between par value of share and issue…
Q: Fizer Pharmaceutical paid $86 million on January 2, 2021, for 6 million shares of Carne Cosmetics…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: Cory Company issued 120,000 shares of its P10 par ordinary to Fuzzy Inc. in lieu of a real estate…
A: Share premium Share premium is the additional premium amount which is collected by the entity to…
Q: If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value…
A: Computation of Consolidated Total Equity at the date of Acquisition:
Q: Relay Company is permitted to issue 500,000 ordinary shares of P10 par value. During the first year…
A: Contributed Capital is the total amount contributed by the owners and also includes shares premium.…
Q: On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…
A: Calculation of Total Cash to be shown in the Consolidated Balance Sheet Cash Balance of Pamigay Corp…
Q: COMBO Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…
A: No of ordinary shares 20,000 @ P25 500000 No of Preference shares 4000@50 200000 Cash 3,50,000…
Q: 2. Assume Miller accounts for its investment in Marlon using the equity method. Ignoring income…
A:
Q: Boston Lumber is unlevered with 222 shares outstanding and earnings before interest and taxes, or…
A: Calculation of Boston Lumber's EPS after the partition.
Q: On June 1, Smart Company issued 8,000 shares of its P100 par ordinary share capital to Dix for a…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: market values of P20 and P2,300,000, respectively. Moreover, it agreed to pay an additional P170,000…
A: Purchase Consideration is the amount paid in consideration for the fair value of net assets in…
Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…
A: Consolidated financial statements are the one which are prepared when one or two subsidiaries are…
Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company’s outstanding ordinary shares for…
A: Formula: Ending capital = Beginning capital + Net income - Dividends paid
Q: Matthew Company issues 4,000 ordinary shares to its external lawyers for services related to the…
A: Expense refers to the decrease in the asset value because it is used for generating the revenue or…
Q: First Link Services granted 8 million of its $1 par common shares to executives, subject to…
A: Total compensation cost pertaining to the restricted shares = 8,000,000 shares x $6…
Q: egistering and iss
A: It is given that the balance sheet information of January 2, 2021 PAMIGAY CORP.
Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…
A:
Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…
A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…
Q: On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity…
A: Solution A journal is a company's official book in which all business transaction are recorded in…
Q: During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…
A: Where shares are held as investments for short-term (current assets), the shares are recorded at…
Q: The Resty company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…
A: Total expense net of tax = ( professional fees + internal management time in managing the process) x…
Q: Of the amount paid for the investment, how much is attributable to goodwill? How much is the…
A: Acquisition costs are the sum of the costs incurred by the business in acquiring a new client or…
Q: On January 1, 2022, Bumili Co, purchased 10,000 shares of Nabill, Inc. for P1,000,000 Commission and…
A: On January 1, 2022, Bumili Co, purchased 10,000 shares of Nabill, Inc. for P1,000,000 Commission and…
Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…
A: Solution:- Calculation the increase in equity in the statement of financial position of Resty as…
Q: On January 1, Paisley, Inc., paid $560,000 for all of Skyler Corporation’s outstanding stock. This…
A:
Q: On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500…
A: The investment income to be reported is equal to the total amount received from the company as a…
Q: How much is the goodwill to be presented on the consolidated statement of financial position as of…
A: Calculation of Goodwill/ Capital Reserve to be presented on the consolidated financial statement as…
Q: Inn Corporation had 30,000 ordinary shares of NP which were acquired during Year 2 for a total…
A: Introduction Equity investments are measured at initial recognition in the beginning and at fair…
Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…
A: Consolidated cash balance as of the date of acquisition = Cash balance of both companies before…
Q: Determine the amount of goodwill or gain on bargain purchase from the above transaction. Give the…
A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…
Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by…
A: Share Premium Share premium is the addition revenue which are derived in the business after issuing…
Q: On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500…
A: GIVEN On January 2, 2021. Normal Inc. acquired 15% interest in Laco Co. by paying P1.500.000 for…
Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…
A: Issuance costs=Professional fee+Internal management time expense=P 40,000+P 30,000=P 70,000
Q: On June 1, Axie Corporation issued 8,000 shares of its P100 par ordinary share capital to BEAST for…
A: Share Premium Account In a simple work share premium account is the difference between the basic…
Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2020, by issuing…
A: A business combination is a transaction in which a buyer takes over control of another company (the…
Q: Inn Corporation had 30,000 ordinary shares of which were acquired during Year 2 for a total…
A: Answer - December 31, Year 2 ledger balance (30,000 x P65) P1,950,000 Cost…
Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by…
A: The share premium account balance cannot be utilized for distributing dividends but can be utilized…
Q: CFAS Corporation issued 5,000 ordinary shares of P100 par value in Exchange for a land. Based on the…
A: General Journal Debit Credit Land P7,50,000 Common Stock (5000 shares * P100)…
Q: ABC Company is in financial difficulties and agreed to issue 20,000 of its P20 par value shares in…
A: Here discuss about the details of extinguishment of debt while incurred the equity swap to the loan…
Q: If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value…
A: Calculation of Consolidate Total Asset at the date of Acquisition:
Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…
A: 1. Cash to be presented on the consolidated statement of financial position as of the date of…
Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…
A: Goodwill is the reputation of company which is gained by the entity during the course of its…
19
Step by step
Solved in 2 steps
- Assume the following independent cases:A. At the beginning of the year, a check was issued for P400,000 as payment for a piece of land, and the buyer assumed the liability for the unpaid taxes at the end of the year, P10,000 and those assessed for the current year at P9,000.B. A company issued 14,000 ordinary shares (P10 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and competent appraisers.C. A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).D. A company purchased land by signing a note with the seller, requiring P100,000 down payment, payment of P120,000 one year from purchase, and P80,000 three years from purchase. The note is non-interest bearing,…The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80each. Resty identified the following costs in relation to the share issue: Professional fees of P40,000. Internal management time in managing the process of P30,000.These costs are deductible in arriving at the entity’s income tax liability. Thecurrent rate of tax is 30%.In accordance with PAS32 Financial instruments: presentation, the increase inequity in the statement of financial position of Resty as a result of the transactionwill bea. P360,000b. P332,000c. P320,000d. P311,00013. The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue: Professional fees of P40,000. Internal management time in managing the process of P30,000. These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%. In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will be Group of answer choices P332,000 P311,000 P360,000 P320,000
- Assume the following independent cases: (a) At the beginning of the year, a check was issued for P400,000 as payment for a piece of land and the buyer assumed the liability for unpaid taxes in arrears for the previous year, P10,000 and those assessed for the current year, P9,000.(b) A company issued 14,000 ordinary shares (P50 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and professional appraisers.(c) A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).How much is the cost of land acquired in (a), (b), and (c), respectively? a. 419,000; 800,000; 7,800,000 b. 410,000; 800,000; 7,800,000 c. 410,000; 840,000; 7,800,000 d. 419,000; 840,000;…Taballa Ltd owns all the share capital of Amaroo Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2023 or 30 June 2024. (a) On 1 May 2023, Amaroo Ltd sold inventories costing $600 to Taballa Ltd for $1 200 on credit. On 30 June 2023, only half of these goods had been sold by Taballa Ltd, and Taballa Ltd had paid $600 to Amaroo Ltd. All remaining inventories were sold to external entities by 30 June 2024 and Taballa Ltd paid the outstanding amount to Amaroo Ltd on 5 May 2024. (b) On 1 January 2023, Taballa Ltd sold an item of plant to Amaroo Ltd for $10 000. Immediately before the sale, Taballa Ltd had the item of plant on its accounts for $ 12 000. Taballa Ltd depreciated items at 5% p. a. on the diminishing balance and Amaroo Ltd used the straight-line method over 10 years. (c) An inventories item with a cost of $4 000 was sold by Taballa Ltd to Amaroo Ltd for $3 600 on 1 January 2024. Amaroo Ltd intended to use this item as…On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity of Associate Ltd consisted of $3,000,000 share capital and $1,200,000 retained earnings. There has been no change in share capital of Associate Ltd since then. Both firms' accounting period is from 1 January to 31 December and their income tax rate is 30%. On this date, all the identifiable net assets of Associate Ltd were recorded at fair value except for the following: Fair value Carrying amount Status Inventory $ 400,000 $ 600,000 Sold in 2020 Machinery (net) 900,000 500,000 5-year life Equipment (net) 70,000 150,000 4-year life Additional information: Associate Ltd has no dividend declared or paid during 2020. Associate Ltd's financial statements show that retained earnings were $1,500,000 as at 1 January 2021, and profit and dividend were $190,000 and $10,000, respectively, for 2021. On 15 November 2021, Associate Ltd sold inventory to Investor Ltd at a profit before income tax…
- On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity of Associate Ltd consisted of $3,000,000 share capital and $1,200,000 retained earnings. There has been no change in share capital of Associate Ltd since then. Both firms' accounting period is from 1 January to 31 December and their income tax rate is 30%. On this date, all the identifiable net assets of Associate Ltd were recorded at fair value except for the following: Fair value Carrying amount Status Inventory $ 400,000 $ 600,000 Sold in 2020 Machinery (net) 900,000 500,000 5-year life Equipment (net) 70,000 150,000 4-year life Additional information: Associate Ltd has no dividend declared or paid during 2020. Associate Ltd's financial statements show that retained earnings were $1,500,000 as at 1 January 2021, and profit and dividend were $190,000 and $10,000, respectively, for 2021. On 15 November 2021, Associate Ltd sold inventory to Investor Ltd at a profit before income tax…The accountant for Indra Ltd (Indra) has determined the following information for the year ended 30 June 2020. Profit or loss P300,000 Share of total comprehensive income(after tax) of associates 20,000 Share of profit (after tax) of associates 15,000 Exchange difference gain (net of tax of P3,000) on translation of foreign operation up to the date sold (1 March 2020) 7,000 Exchange difference gain (net of tax of P9,000) on disposal of foreign operation recognized in profit for the year 21,000 Increase in asset revaluation surplus(net of tax) 45,000 What is the total amount of other comprehensive income for Indra for the year ended 30 June 2020?The accountant for Indra Ltd (Indra) has determined the following information for the year ended 30 June 2020. Profit or loss P300,000 Share of total comprehensive income(after tax) of associates 20,000 Share of profit (after tax) of associates 15,000 Exchange difference gain (net of tax of P3,000) on translation of foreign operation up to the date sold (1 March 2020) 7,000 Exchange difference gain (net of tax of P9,000) on disposal of foreign operation recognized in profit for the year 21,000 Increase in asset revaluation surplus(net of tax) 45,000 What is the total amount of other comprehensive income for Indra for the year ended 30 June 2020? a. 72,000 b. 36,000 c. 51,000 d. 57,000
- 4.Assume the following independent cases: (a) At the beginning of the year, a check was issued for P400,000 as payment for a piece of land and the buyer assumed the liability for unpaid taxes in arrears for the previous year, P10,000 and those assessed for the current year, P9,000.(b) A company issued 14,000 ordinary shares (P50 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and professional appraisers.(c) A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).How much is the cost of land acquired in (a), (b), and (c), respectively? a. 419,000; 800,000; 7,800,000 b. 410,000; 800,000; 7,800,000 c. 410,000; 840,000; 7,800,000 d. 419,000; 840,000;…Mary Company’s pretax accounting income is $66,000 and has the following information: Compensation expense for incentive stock options is $19,000. Interest on municipal bonds is $11,000. Unrealized gain on AFS securities is $1500. Taxable income is $66,000 + $11,000 + $19,000 - $1500. $66,000 + $11,000 - $19,000 + $1500. $66,000 - $11,000 + $19,000. $66,000 - $11,000 - $19,000 .TyroneCo, an S corporation with a positive E & P balance, reports gross receipts for the year totaling $533,000 (of which $266,500 is passive investment income). Expenditures directly connected to the production of the passive investment income total $106,600. Compute Tyrone's passive investment income tax. If required, round your final answer to the nearest dollar.