a) Assuming that Y's net income in the first year following the acquisition was $950,000, prepare any journal entries (for X Company) that are necessary to reflect Y's results under IFRS 3 Business Combinations. b) Assuming that the agreement called for Y's shareholders to be compensated with 1,250 shares for any decline in X's share price, what journal entries would be required under IFRS 3, if the market value of X's shares dropped to $64 within the year?

Poppy Corporation acquires Stevens Company, paying the owners of Stevens 1,000,000 new shares with a par value of $0.50 per share and a fair value of $50 per share at the date of acquisition. Poppy also incurs cash registration fees of $100,000 and consulting fees of $700,000. Included in the agreement is a contingency guaranteeing Stevens shareholders to pay $400,000 if sales increase 5% in the current year. Poppy' contingency is almost certain and it is valued at $400,000. What is Poppy's reported acquisition cost?

Parks, Incorporated paid $10 per share for 80,000 of the 100,000 shares of KO, Incorporated, when KO’s net assets had a total fair value of $950,000. During the weeks before and after this acquisition, the shares of KO, Incorporated have traded for $9 per share. What is the total acquisition business fair value of KO, Incorporated?

Assume that Bailey Company gains control of Moloney, its subsidiary, with the purchase of a 30% interest paid in cash. The Equity Investment account reports a balance of $250,000 on the acquisition date and represents a 40% interest in Moloney. The total value of Moloney on the acquisition date is $700,000 (assume no premium for control).   The journal entry to record the acquisition includes: Select one: A. Cash, credit, $700,000 B. Gain on revaluation of Moloney, credit, $30,000 C. Loss on revaluation of Moloney, debit, $30,000 D. None of the above PreviousSave AnswersNext

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Prince Corporation purchased 100% of the common stock of Star Corporation on January 1, 2024 for $250,000, which was $50,000 above the underlying book value. The initial investment entry that Prince recorded on the date of the business combination will include:O a. Debit Investment in Subsidiary, $220,000; Credit Cash, $220,000. b. Debit Investment in Subsidiary, $250,000; Credit Cash, $250,000.0 c. Debit Investment in Subsidiary, $200,000; Credit Cash, $200,000. d. Debit Investment in Subsidiary, S 180,000: Credit Cash, $180,000.

What is the amount of income attributable to the non-controlling interest in 20x1 if the non-controlling interest is to be stated at fair value?

Pete Corporation and Sol Company agreed to combine their businesses, with Pete Corporation as the surviving entity. Pete will issue 48,000 shares of its capital stock, with a par value of P100 per share, and a fair market value of P175 per share. Pete incurred the following additional acquisition cost:Professional Fees P120,000Indirect acquisition costs 80,000Cost to Register and issue stock 50,000Before combination, their respective balance sheets showed stock holders equity account as follow:                                              Pete                  SolCapital stock                        P7,200,000      P3,600,000Additional paid in capital         3,120,000          360,000Retained earnings                  6,000,000        2,040,000Determine the amount of consolidated shareholders' equity immediately after business combination.

ummer Company holds assets with a fair value of $126,000 and a book value of $95,000 and liabilities with a book value and fair value of $24,000. Required: Compute the following amounts if Parade Corporation acquires 70 percent ownership of Summer: What amount did Parade pay for the shares if the fair value of the noncontrolling interest at acquisition is $45,600 and goodwill of $50,000 is reported? What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Parade pays $87,500 to acquire its ownership and goodwill of $23,000 is reported?

Palm Corporation and Staple Company have announced terms of an exchange agreement under which Palm will issue 8,500 shares of its $15 par value common stock to acquire all of Staple Company’s assets. Palm shares currently are trading at $59, and Staple $10 par value shares are trading at $23 each. Historical cost and fair value balance sheet data on January 1, 20X2, are as follows:   Palm Corporation   Staple Company     Balance Sheet Item Book Value Fair Value   Book Value Fair Value     Assets                             Cash & Receivables $ 151,000   $ 151,000     $ 46,000   $ 46,000     Land   110,000     190,000       57,000     83,000     Buildings & Equipment (net)   313,000     411,000       176,000     230,000     Total Assets $ 574,000   $ 752,000     $ 279,000   $ 359,000     Equities                             Common Stock $ 200,000           $ 81,000           Additional Paid-In Capital   18,000             9,900           Retained Earnings…