19 Final Company has a 290,000 TL investment in Q Corporation (116,0O0 shares of the tota capital represented by 200.000 shares) Q Corporation decided to increase its capital by a total of 150.000 TL Final Company made a commitment to participate in this capital increase (at its current ownership share) and pald 47.000 TL portion in cash.
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- What amount of income from the investment should be Problem 17-11 (AICPA Adapted) On July 1, 2021, Focus Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share. On December 15, 2021, Eagle Company paid P1,000,000 dividends. Eagle Company's net income for 2021 wee P5,000,000 earned evenly throughout the year. reported for the current year? a. 500,000 b. 300,000 c. 750,000 d. 150,000 51814. A company has the following information during the year? Total consideration from share issuances amounted to P3,000,000. A land and building were acquired through a lump sum payment of P450,000. A mortgage amounting to P150,000 was assumed on the land and building. Total payments of P70,000 were made during the year on the mortgage assumed on the land and building, The payments are inclusive of interest amounting to P20,000. Additional capital of P220,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. There is no accrued interest as of year-end. Dividends declared during the year but remained unpaid amounted to P63,000. No other transactions during the year affected liabilities. Retained earnings as of December 31, 20x1 is P130,000 How much is the profit for the year? 15. Using the information on the preceding number, how much is the total assets as of the end of the…Company A acquired 37% investment in Company B for R196 000. During the first year after acquieition Company B made net income of R400 000. Using the equity accounting method, what will happen to Company A's investment in Company B? Select one: O a. It remains the same O b. It increases by R148 000 O c Ilt decreases by R196 000 O d. It decreases by R148 000
- On-Ju Company acquired 90% interest in Southwest Company on December 31, 20x4 for P320,000. During 20x5 Southwest had a net income of P22,000 and paid a cash dividend of P7,000. Applying the cost method would give a debit balance in the Investment in Southwest Company account at the end of 20x5 of: P335,000 P333,500 P313,700 P320,0003. What is the carrying amount of the investment in of the outstanding ordinary shares of Free Company for P5,000,000 cash. Cyber Company accounts for this investment At the date of acquisition, Free Company's net assets had a excess of carrying amount. The land was sold during the Free Company owned land with a fair value of P1,000,000 in At the beginning of current year, Cyber Company bought 30% Problem 17-16 (IAA) by the equity method. carrying amount of P12,000,000. a current year. The remaining difference between the purchase price and ihe carrying amount of the underlying equity cannot be attributed to any identifiable tangible or intangible asset. Accordingly, the remaining difference is allocated to goodwill. Free Company reported net income of P6,000,000 and paid cash dividend of P1,500,000 during the current year. 1. What is the implied goodwill from the acquisition? a. 1,400,000 b. 1,000,000 с. 1,100,000 d. 2. What amount should be reported as investment income for the…CAIRNE issued 30,000 shares of P100 stated value in exchange for land and factory building with total fair value of P9 million pesos. The value of land is twice as much the value of the building. What would be the entry of CAIRNE to record the transaction? Group of answer choices A. Land Building 6,000,000 3,000,000 Share Capital 6,000,000 3,000,000 Share Capital Share Premium 9,000,000 B. Land Building 3,000,000 6,000,000 C. Land Building 2,000,000 1,000,000 Share Capital 2,000,000 1,000,000 Share Capital 3,000,000 D. Land Building 3,000,000
- How much should be debited to Pre-operating Expenses account for the issuance of 2,000 shares of P10 par ordinary share capital in exchange for the services of a lawyer amounting to P30,000 for the incorporation of the company? a.) P 20,000 b.) P 30,000 c.) P 25,000 d.) P 50,000 SHOW COMPLETE SOLUTIONIn 20x3, SKEPTICAL incurred constructive obligation of ₱480,000 in favor of QUESTIONING and made payments of ₱320,000 on behalf of QUESTIONING. In relation to the investment in QUESTIONING shares, what amounts should SKEPTICAL Co. report in its statement of profit or loss in the following years? 20x1 20x2 20x3 20x4 a. (1,120,000) (280,000) (800,000) 600,000 b. (1,120,000) (400,000) (800,000) 600,000 c. (1,120,000) (280,000) 0 800,000 d. (800,000) 0 0 800,000How to record the following transactions? 13. (!)Company repurchased from the market 20 of own shares at nominal value of 10 and purchase price of 4. All share were paid for in full cash. 14. Last year company issue 100 shares at a nominal price of $6 / share and issue price $7 / share with an emission expense $150. 15. The company received a return of the goods from client – value of goods 2 000. 16. Last year the company set up a warranty provision of 20 000. One of the clients asked for a repair of the products purchased which cost 2 800. Company used the warranty provision to settle the cost. 17.The company Alfa incurred R&D. Company stated that the research costs are equal 2 000 and second stage (development cost) of the project is not finished but usefulness of it is almost 3 000.18.Company obtained a grant from a government of 2 000 to conduct R&D activities over the next year.The company Alfa incurred R&D. Company stated that the second stage of the project…
- ACE Ltd has an outstanding shares of 10,000,000 shares. Kimmy Ltd purchases 100,000 shares of ACE Ltd at $4 per share. Transaction cost is $1,000. How much will the company capitalise if the investment is classified at fair value through OCI? Choose one of the following answers. 401,000 None of the above 399,000 400,000Eagle Exporters purchased 80,000 of the 200,000 outstanding shares of Giant Distributors for $3,000,000. Eagle has significant influence over Giant and will account for this investment using the equity method. During the year, Giant declared dividends of $100,000 and reported Net Income of $780,000. What is the balance in the Investment in Giant account at year end? Group of answer choices $2,648,000 $3,272,000 $2,728,000 $3,352,00048. Bach Co. acquired a 20% interest in C Major Co. on December 31, 20x3 for P630,000. During 20x4, C Major reported profit of P400,000 and paid cash dividends of P100,000. At December 31, 20x4, the balance in the investment account should be a. P630,000. b. P690,000. c. P670,000. d. P720,000.