HW WK 3

Cn you help me to solve this question please? Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $440,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $340,000. Scenic reported net income of $150,000. Placid Lake declared $140,000 in dividends during this period; Scenic paid $44,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows:  Placid LakeScenicInventory$180,000 $94,000 Land 640,000  240,000 Equipment (net) 440,000  340,000   During 2017, intra-entity sales of $95,000 (original cost of $50,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2017. In 2018, $130,000 in intra-entity sales were made…

Please help me solve questions 1 2 & 3. Thank you! Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $440,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year.   Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $340,000. Scenic reported net income of $150,000. Placid Lake declared $140,000 in dividends during this period; Scenic paid $44,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows:     Placid Lake Scenic Inventory $ 180,000   $ 94,000   Land   640,000     240,000   Equipment (net)   440,000     340,000       During 2017, intra-entity sales of $95,000 (original cost of $50,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of…

Problem 4-14 (Algo) (LO 4-2, 4-4, 4-5) On January 1, 2023, French Company acquired 60 percent of K-Tech Company for $337,500 when K-Tech's book value was $437,500. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $225,000, At the acquisition date, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-year remaining life) was undervalued by $45,000. In 2023, K-Tech reports $17,500 net income and declares no dividends. At the end of 2024, the two companies report the following figures (stockholders' equity accounts have been omitted): Itens Current assets Trademarks Patented technology Liabilities Revenues Expenses Investment income French Company Carrying Amount $645,000 205,000 435,000 (415,000) (925,000) 475,000 Not given K-Tech Company Carrying Amounts $325,000 225,000 175,000 (145,000) (425,000) 325,000 a Consolidated net income b(1) Noncontrolling interest's share of the…

Problem 1-13 (Algo) (LO 1-4, 1-5) On January 3, 2021, Matteson Corporation acquired 30 percent of the outstanding common stock of O'Toole Company for $1,335,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $873,000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of 10 years. For the year ended December 31, 2021, O'Toole reported net income of $324,000 and declared cash dividends of $35,000. On December 31, 2021, what should Matteson report as its investment in O'Toole under the equity method? Investment

PROBLEM III. On January 1, 2020, P Corporation purchase 80% of S Company's ordinary share for P810,000. P37,500 of the excess is attributable to goodwill and the balance to depreciable asset with economic life of ten years. NCI is measured at fair value on the date of acquisition. On this date, shareholders' equity of the two companies were as follows: P Corporation S Company Ordinary share P1,312,500 P300,000 Retained earnings 1,950,000 525,000 On December 31, 2020, S Company reported net income of P131,250 and paid dividends of P45,000 to Party. Party reported earnings from its own operations of 356,250 and paid dividends of P172,500. Goodwill has been impaired and should be reported at P7,500 on December 31, 2020. 1. Net income attributable to parent 2. NCINIS

Problem 5-13 (Algo) (LO 5-3,5-4, 5-5) On January 1, 2023, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Incorporated, for a total of $1,435,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $920,000, retained earnings of $470,000, and a noncontrolling interest fair value of $615,000. Corgan attributed the excess of fair value over Smashing's book valu to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Items 2023 Net Income $ 370,000 350,000 Dividends Declared $ 57,000 67,000 Inventory Purchases from Corgan $ 320,000 340,000 2024 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2023 and 2024, 30 percent of the current yea purchases remain in Smashing's inventory. Required: a. Compute the equity method balance in Corgan's Investment in Smashing,…

Problem 2-28 (Algo) (LO 2-4, 2-7) On January 1, 2024, Casey Corporation exchanged $3,327,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) Carrying amount acquired Excess fair value to buildings (undervalued) to licensing agreements (overvalued) to goodwill (indefinite life) Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total assets Accounts payable Long-term debt Common stock Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Accounts Additional paid-in capital Retained earnings Total liabilities and equities…

PROBLEM III. On January 1, 2020, P Corporation purchase 80% of S Company's ordinary share for P810,000. P37,500 of the excess is attributable to goodwill and the balance to depreciable asset with economic life of ten years. NCI is measured at fair value on the date of acquisition. On this date, shareholders' equity of the two companies were as follows: P Corporation S Company Ordinary share P1,312,500 P300,000 Retained earnings 1,950,000 525,000 On December 31, 2020, S Company reported net income of P131,250 and paid dividends of P45,000 to Party. Party reported earnings from its own operations of 356,250 and paid dividends of P172,500. Goodwill has been impaired and should be reported at P7,500 on December 31, 2020. latlecomeoltolbutable-te-perent. NCINIS 3. NCINAS 4. Consolidated retained earnings 5. Consolidated Shareholders' Equity

Hw.27.   Entity A entered into a sale and repurchase agreement for its head office on 1 January 2022, selling the office to Bank B for $78,560,000. On the same date, the head office had a fair value of $97,800,000. Entity A will continue to use the head office for the next 2 years and has the option to buy back the property for $93,765,779, based on an effective interest rate of 9.25% per year over the next 2 years. Property prices are expected to increase over the next 2 years. REQUIRED: Measure the net amount to be shown in the Statement of Profit or Loss for the year ended 31 December 2022.     1. $7,938,979 Expense   2. $19,240,000 Expense   3. $0   4. $7,266,800 Expense   5. None of them.

Problem 4-18 (Static) (LO 4-2, 4-4, 4-5) On January 1, 2024, Johnsonville Enterprises, Incorporated, acquired 80 percent of Stayer Company's outstanding common shares in exchange for $3,000,000 cash. The price paid for the 80 percent ownership interest was proportionately representative of the fair value of all of Stayer's shares. At acquisition date, Stayer's books showed assets of $4,200,000 and liabilities of $1,600,000. The recorded assets and liabilities had fair values equal to their individual book values except that a building (10-year remaining life) with book value of $195,000 had an appraised fair value of $345,000. Stayer's books showed a $175,500 carrying amount for this building at the end of 2024. Also, at acquisition date Stayer possessed unrecorded technology processes (zero book value) with an estimated fair value of $1,000,000 and a 20-year remaining life. For 2024, Johnsonville reported net income of $650,000 (before recognition of Stayer's income), and Stayer…

Hello please help me with f-1 and f-2. Thank you!     Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $440,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year.   Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $340,000. Scenic reported net income of $150,000. Placid Lake declared $140,000 in dividends during this period; Scenic paid $44,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows:     Placid Lake Scenic Inventory $ 180,000   $ 94,000   Land   640,000     240,000   Equipment (net)   440,000     340,000       During 2017, intra-entity sales of $95,000 (original cost of $50,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2017.…

(TCO D) When Timber Co. acquired 75% of the common stock of Woody Corp., Woody owned land with a book value of $70,000 and a fair value of $100,000. What amount of excess land allocation would be included for the calculation of noncontrolling interest, according to SFAS 141(R)? Group of answer choices $70,000 $25,000 $17,500 $7,500 $0

X) Alpha Company acquired 30 percent of the outstanding voting stock of Beta Company on January 1, 2020, for $254,000 in cash and had the ability to significantly influence the investee's operations and decision making, The book value of Beta's net assets on that date was $600,000, although one of the company's buildings, with a $40,000 carrying amount, was actually worth $120,000. This building had an 8-year remaining life. Beta owned a royalty agreement with a 5-year remaining life that was undervalued by $100,000. Alpha attributed to goodwill any unidentified excess cost. Beta reported net income of $100,000 in 2020 and $120,000 in 2021. Dividends of $20,000 and $30,000 are declared and paid in 2020 and 2021, respectively. Alpha sold inventory with an original cost of $24,000 to Beta during 2020 at a price of $40,000. Beta still held $10,000 (transfer price) of this amount in inventory as of December 31, 2020. These goods are to be sold to outside parties during 2021. During 2021,…

Urgent Please!Cascade Ltd. acquired 100% of the voting shares of Tumble Inc. on December 31, 2023. At that time, Tumble had a client list with a fair value of $140,000 greater than the carrying value. The estimated useful life was 7 years. Which adjustments must be made in the December 31, 2025, consolidated statements in relation to the FVD of the client list? Question 1 options: A) Consolidated Sl: increase depreciation expense by $20,000 and Consolidated SFP: increase the client list by $100,000 B) Consolidated Sl: decrease depreciation expense by $20,000 and Consolidated SFP: increase the client list by $100,000 C) Consolidated Sl: decrease depreciation expense by $20,000 and Consolidated SFP: increase the client list by $80,000 D) Consolidated Sl: increase depreciation expense by $20,000 and Consolidated SFP: increase the client list by $80,000

Problem 5-24 (Algo) (LO 5-7) Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2019, Padre transferred equipment to Sonora for $84,000. The equipment had cost $133,000 originally but had a $43,000 book value and five-year remaining life at the date of transfer. Depreciation expense is computed according to the straight-line method with no salvage value.   Consolidated financial statements for 2021 currently are being prepared. What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)   Consolidation Worksheet Entries PREPARE ENTRY *TA Note: Enter debits before credits.         Transaction Accounts Debit Credit 1                                                 PREPARE ENTRY ED BELOW Consolidation Worksheet Entries   Note: Enter…

Accounting On January 1, 2022, Pronto Company acquired all of Speedy Inc.'s voting stock for $28,800,000. Speedy's net assets were reported at amounts approximating book value, but Pronto determined that Speedy had the following previously unreported intangible assets: Developed technology, fair value $2,400,000, 5-year life • Favorable leases, fair value $1,200,000, 4-year life ● Speedy's shareholders' equity on January 1, 2022, was $12,000,000. It is now December 31, 2023 (two years later). Speedy reported net income of $960,000 in 2022. There are no impairments of identifiable intangibles or goodwill in 2022 or 2023. Pronto uses the complete equity method to report its investment in Speedy on its own books. Speedy's December 31, 2023, trial balance appears below. Dr (Cr) $24,000,000 Current assets Property and equipment, net 60,000,000 Liabilities (69,600,000) Capital stock (2,400,000) Retained earnings, January 1 (10,560,000) Sales revenue (84,000,000) Cost of goods sold 72,000,000…

Problem 7-28 (Static) (LO 7-5, 7-6) Parson Company acquired an 80 percent interest in Syber Company on January 1, 2020. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared.   The individual financial statements for the two companies as well as consolidated totals for 2021 follow (credit balances indicated by parentheses):     ParsonCompany   SyberCompany   ConsolidatedTotals Sales $ (800,000 )   $ (600,000 )   $ (1,280,000 ) Cost of goods sold   500,000       400,000       784,000   Operating expenses   100,000       100,000       202,500   Income of Syber   (74,800 )     0       0   Separate company net income $…

Problem 6-37 (Algo) (LO 6-7) Albuquerque, Incorporated, acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition date, Marmon reported a book value of $950,000, and Albuquerque assessed the fair value of the noncontrolling interest at $100,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time, Marmon reports $1,000,000 as total stockholders' equity, which is broken down as follows: Common stock ($12 par value) Additional paid-in capital Retained earnings $ 480,000 420,000 100,000 Total $ 1,000,000 View the following as independent situations: Required: a. & b. Marmon sells 8,000 and 5,000 shares of previously unissued common stock to the public for $30 and $20 per share. Albuquerque purchased none of this stock. What…

Items 7 - 9: On January 2, 2022, Phillips Corporation purchase 80 % of Signage Company's outstanding shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Phillips Corporation Signage Company P 240,000 420,000 Ordinary shares P1,050,000 1,560,000 Retained earnings On December 31, 2022, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2022. 7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A P 21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent…

1. Father Corporation (FC) acquires 20% ownership interest in Son Corporation (SC) on January 1, 202X, for P1,750,000 cash, which is the fair value of the investment at that date. FC has concluded that it does not have a significant influence over SC. At the same date, the fair and carrying values of SC’s identifiable assets is P5,000,000 and P3,000,000. The identifiable assets include land, which has fair and carrying values of P4,000,000 and P3,000,000, respectively. For the year ended December 31, 202X, SC reported a profit of P3,000,000 but did not pay any dividends. Moreover, the fair value of SC’s land increases by P1,500,000. However, the carrying amount of the land remains unchanged at P3,000,000. Given below is the Statement of Financial Position (SFP) of SC, together with the fair values of the identifiable assets, at December 31, 202X:   Carrying Amount Fair Value Cash and Receivables 4,000,000 4,000,000 Land 3,000,000 5,500,000…

Problem 4-27 (Static) (LO 4-10) Posada Company acquired 7,000 of the 10,000 outstanding shares of Sabathia Company on January 1, 2022, for $840,000. The subsidiary's total fair value was assessed at $1,200,000 although its book value on that date was $1,130,000. The $70,000 fair value in excess of Sabathia's book value was assigned to a patent with a five-year remaining life. On January 1, 2024, Posada reported a $1,085,000 equity method balance in the Investment in Sabathia Company account. On October 1, 2024, Posada sells 1,000 shares of the investment for $191,000. During 2024, Sabathia reported net income of $120,000 and declared dividends of $40,000. These amounts are assumed to have occurred evenly throughout the year. Required: a. How should Posada report the 2024 income that accrued to the 1,000 shares prior to their sale? b. What is the effect on Posada's financial statements from this sale of 1,000 shares? a. b. Answer is not complete. Posada's income for shares sold Credit…

L2-4 Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows:   31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2   200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000)   100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2

On January 1, 2023, Novak Corporation, a public company following IFRS, acquired 15,900 of the 53,000 outstanding common shares of Noah Corp. for $22 per share. Noah's statement of financial position reported the following information at the date of the acquisition: Assets not subject to depreciation $289,800 Assets subject to depreciation 860,100 Liabilities 150,100 Additional information: 1. On the acquisition date, the fair value is the same as the carrying amount for the assets that are not subject to depreciation and for the liabilities. 2. 3. 4. On the acquisition date, the fair value of the assets that are subject to depreciation is $964,100. These assets had a remaining useful life of eight years at that time. Noah reported 2023 net income of $104,000 and paid dividends of $5,000 in December 2023. Noah's shares are not actively traded on the stock exchange, but Novak has determined that they have a fair value of $21 per share on December 31, 2023. (a) Your answer is partially…

c. P15,120 d. (P15,120) 27. On January 1, 2022, Artemis Company purchased 80% of the outstanding share of Diana Corporation for P1,840,000. The book value of Diana's net assets amounted to P2,000,000. Book values approximate the fair values at acquisition date. Artemis chose the fair value method in estimating the value of NCI. At acquisition date, NCI has a fair value of P440,000. On October 31, 2022, Artemis sold 10% of the share capital to several investors for P260,000. The fair value of the 10% share at that time is P240,000. How much is the gain to be reported in the consolidated statement of income for the year ended December 31, 2022 as a result of the sale of 10% ownership? a. Р-0- b. P30,000 c. P20,000 d. P60,000

On January 3, 2020, Novak Limited purchased 3,500 (35%) of the common shares of Sonja Corp. for $468,900. The following information is provided about the identifiable assets and liabilities of Sonja at the date of acquisition:     Carrying Amount   Fair Value     Assets not subject to depreciation   $516,000   $516,000     Assets subject to depreciation (10 years remaining)   806,000   866,000     Total identifiable assets   1,322,000   1,382,000     Liabilities   108,000   108,000     During 2020, Sonja reported the following information on its statement of comprehensive income: Income before discontinued operations   $208,000   Discontinued operations (net of tax)   (71,900)   Net income and comprehensive income   136,100   Dividends declared and paid by Sonja November 15, 2020   124,000   Assume that the 35% interest is enough to make Sonja an associate of Novak, and that Novak is required to apply IFRS for its financial reporting. The fair…

On January 1, 2022, Pronto Company acquired all of Speedy Inc.'s voting stock for $12,000,000 Speedy's net assets were reported at amounts approximating book value, but Pronto determined that Speedy had the following previously unreported intangible assets: • Developed technology, fair value $1,000,000, 5-year life • Favorable leases, fair value $500,000, 4-year life Speedy's shareholders' equity on January 1, 2022, was $5,000,000 It is now December 31, 2023 (two years later). Speedy reported net income of $400,000 in 2022. There are no impairments of identifiable intangibles or goodwill in 2022 or 2023. Pronto uses the complete equity method to report its investment in Speedy on its own books. Speedy's December 31, 2023, trial balance appears below. Current assets Property and equipment, net 25,000,000 Liabilities (29,000,000) Capital stock (1,000,000) Retained earnings, January 1 (4,400,000) (35,000,000) 30,000,000 4,400,000 $0 Sales revenue Cost of goods sold Operating expenses Dr…

On January 1, 2020, Entity A, a public entity, acquired 90% of outstanding ordinary shares of Entity B. All the assets and liabilities of Entity B are properly valued except for its only building with cost of P1,000,000 and accumulated depreciation of P100,000 without any residual value. On January 1, 2020, the building is already two years of age. The fair value of the building on January 1, 2020 is P720,000. On July 1, 2020, Entity B sold the said building to Entity A at a loss of P90,000. On December 31, 2020, what is the consolidated book value of the said building to be presented in the Consolidated Statement of Financial of Entity A? a. 680,000 b. 850,000 c. 595,000 d. 700,000

14. On January 2, 2022, Perfect Corporation purchase 80% of Seldom Company's ordinary shares for P3,240,000. P150,000 of the total excess is attributable to goodwill and the balance to a depreciable asset with an economic life of 10 years. NCI is measured at its fair value on the date of acquisition. On the date of acquisition, shareholder's equity of the two companies follows: Perfect Seldom Ordinary share Accumulated Profits (losses) P 5,250,000P 1,200,000 7,800,000 2,100,000 On December 31, 2022, Seldom Company reported net income of P525,000 and paid dividends of P225,000 to its shareholders. Perfect Co. reported net income of P1,605,000 and paid dividends of P690,000. Goodwill had been impaired and should be reduced by P120,000 for the current year. On December 31, 2022, what is the consolidated net income? a. P1,770,000 b. P1,788,750 c. P1,800,000 d. P1,893,750

Question 2 Piz.5 L03.) (Goodwill, Impairment) On July 31, 2022. Mexico Company paid Se o00.o00 to acquire all of the ordinary shares of Condhita Incorporated, which became a division (cash-generating unit of Mexico. Conchita reported the following statement of financial position at the time of the acquisition $2.400,000 Non-current assets S2,700,000 Equity Current assets Total assets Soo,000 Non-curent liabihties $3.500,000 Current liabilities 500,000 600.000 Total equity and liabilities S3.500,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was S2-750,000.Over the next6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December g1, 2022, Conchita reports the following statement of financial position information S 450,000 Current assets Non-eurrent assets (including goodwill recognized ia…

Problem 5-10 (Static) (LO 5-7) Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2022, Thomson acquired a building with a 10-year life for $460,000. Thomson depreciated the building on the straight line basis assuming no salvage value. On January 1, 2024, Thomson sold this building to Stayer for $430,400. At that time, the building had a remaining Mife of eight years but still no expected salvage value. In preparing financial statements for 2024, how does this transfer affect the computation of consolidated net income Mutole Choice Net income is reduced by $70.200 Net income is reduced by $02,400 Net income is reduced by $54,600 Net income is reduced by $59.440

3. Father Corporation (FC) acquires 20% ownership interest in Son Corporation (SC) on January 1, 202X, for P1,750,000 cash, which is the fair value of the investment at that date. FC has concluded that it does not have a significant influence over SC. At the same date, the fair and carrying values of SC's identifiable assets is P5,000,000 and P3,000,000. The identifiable assets include land, which has fair and carrying values of P4,000,000 and P3,000,000, respectively. For the year ended December 31, 202X, SC reported a profit of P3,000,000 but did not pay any dividends. Moreover, the fair value of SC's land increases by P1,500,000. However, the carrying amount of the land remains unchanged at P3,000,000. Given below is the Statement of Financial Position (SFP) of SC, together with the fair values of the identifiable assets, at December 31, 202X: Carrying Amount 4,000,000 3,000,000 Fair Value Cash and Receivables Land 4,000.000 5,500,000 Ordinary Shares Retained Earnings 2,500,000…