1 July 2019 Gail Ltd acquired all issued shares of Ray Ltd for $90000. The Ray Ltd financial records show followings. Share capital 10000 @ 5                 $50000 General Reserve                                25000 Retained Earnings                             15000 All assets and liabilities of Ray Ltd recorded at amount equal to fair value at that date. On January 2020, Ray Ltd transferred $ 5000 from general reserve existing at 1 July 2019 to retained earnings. a) Preapare pre-acquisition entries at 1 July 2019 b) Preapare pre-acquisition entries at 30 June 2020

On 1 July 2021 Salzburg Ltd acquired the shares of Vienna Ltd for $60 000. At acquisition date, the capital of Vienna Ltd consisted of 44 000 ordinary shares each fully paid at $1. There were retained earnings of $4 000. All the identifiable assets and liabilities of Vienna Ltd were recorded at amounts equal to fair value except for: Carrying Fair Amount Value $12 000 Inventory Machinery (cost $100 000) $15.000 80 000 82 000 Land 60 000 70 000 Salzburg Ltd Balance Sheet as at 1 July 2021 Share capital $134 000 Retained earnings $41 400 $15 400 Cash at bank $100 000 Land $60 000 Investment in Wayne Ltd

On 1 July 2019 Sugar Ltd acquired 90% of the shares of Glider Ltd for $565 240. At this date the equity of Glider Ltd consisted of share capital of $370 000 and retained earnings of $190 000. All the identifiable asset and liabilities of Glider Ltd were recorded at amounts equal to fair value except for:     Carrying amount Fair Value Land $180 000 $200 000 Plant (cost $380 000) $300 000 $330 000 Inventories $25 000 $35 000   The plant was considered to have a further 10-year life. All the inventory was sold by 30 June 2020. The tax rate is 30%. Sugar Ltd uses the partial goodwill method. During the 2019–20 period Glider Ltd recorded a profit of $30 000. Required Prepare the consolidation worksheet entries for the preparation of the consolidated financial statements of Sugar Ltd at 30 June 2020.

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PROBLEM I On January 2, 2020, P Company purchased the net assets of S Company by paying P850,000 cash and issuing shares of stocks at P3,110,000 fair market value. Book value and fair value data on the Statement of Financial Position on January 2, 2020 are as follows: P Company S Company Book Value 4,600,000 1,000,000 1,500,000 1,800,000 Fair Value 4,600,000 1,000,000 1,300,000 1,460,000 Book Value 300,000 980,000 710,000 1,520,000 90,000 3,600,000 3,024,000 Fair Value 300,000 980,000 600,000 1,064,000 80,000 Cash Accounts Receivable Inventory Building, net Goodwill Total 8,900,000 8,360,000 Liabilities Share Capital Share Premium Retained Earnings Total 1,000,000 1,600,000 1,000,000 570,000 900,000 5,400,000 8,900,000 570,000 600,000 960,000 1,470,000 3,600,000 P incurred and paid legal and brokerage fees of P25,600 for business combination; share issue costs of P23,000 indirect acquisition costs. It is determinable that contingency fee of P11,800 would be paid within the year. 1. The…

company's accounting year ends December 31. Date of Acquisition Cost 9/20/23 $38,000 10/2/23 14,000 Investment Colt Company stock Dana Company stock What amount is reported for gain or loss on these securities in 2023 income? Select one: O a. $800 loss O Fair Value 12/31/23 Date Sold Selling Price $37,000 2/10/24 $42,000 14,200 1/17/24 13,000 b. $1,000 loss c. No gain or loss d. $3,000 gain ہے

Company P acquired 90 percent of the common stock of Company S on 1/1/2020. During 2020, Company S reported a net income of $50,000 and dividends of $12,000. Company P uses the simple equity method to account for the investment in S. Which of the following entries is prepared by Company P when consolidating the financial statements for 2020? Debit Subsidiary Income $45,000, Credit Investment in S $45,000 Debit Investment in S $45,000, Credit Subsidiary Income $45,000 Debit Dividends Receivable $10,800, Credit Subsidiary Income $10,800 Debit Subsidiary Income $10,800, Credit Dividends Declared $10,800

The summarized statements of financial position of PT ABC and PT DEF as of December 31, 2018 are provided below. If PT ABC acquired a 30% interest in PT DEF on December 31, 2018 for Rp225.000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments would have been ?

5 MC Questions On 1 July 2019, Peter Limited acquired all the issued shares of Kerri Limited for $100 000 when the equity of Kerri Limited consisted of:   Share capital                                 $70 000 Retained earnings                          30 000                 The pre-acquisition entry at 1 July 2019 is:   a. Shares in Kerri Limited Dr 100 000     Retained earnings Cr   30 000   Share capital Cr   70 000   b.   Retained earnings   Dr   30 000     Share capital Dr 70 000     Shares in Kerri Limited Cr   100 000   c. Retained earnings Dr 70 000     Share capital Dr 30 000     Shares in Kerri Limited Cr   100 000   d. Goodwill Dr 30 000     Share capital Dr 70 000     Shares in Kerri Limited Cr   100 000

on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the Y net assets was $ 140,000 ,in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000 , declared dividend $30,000 , X using equity methods  what is non- controlling interest balance on 1/1/2019    Select one: a. 37,500 b. 10,000 c. 47,500 d. 50,000