A Corporation purchased a 70% interest in B Company on January 1, 2013 for P140,000, when B’s stockholders’ equity consisted of P30,000 common stock, P100,000 additional paid-in-capital, and P200,000 retained earnings. Income and dividends data for B are as follows: Net income (or loss) P50,000 Dividends 5,000 NCI is measured at fair value If A reported separate income from own operations of P120,000 for 2013, what is the consolidated total comprehensive income for 2013?

Q: during Income from Business Operations Deductions from Business Operations Dividends received from…

A: The dividends received deduction enables a corporation to exclude a dividend earned from some other…

Q: P Corporation paid $140,000 for a 70% interest in S Inc. on January 1, 2014, when S had Capital…

A: Equity method is an accounting technique of recording the financial transactions related to…

Q: During the year just ended, Spriha’s distribution had pretax earnings from operations of $2,290,000.…

A: After-tax return is the profit made on investment post subtracting the amount of tax. The tax is…

Q: On January 2, Matthews Corporation acquired 20% of the outstanding common stock of Dennehy Company…

A: Solution : Cost of investment = $450,000 Net income of Dennehy = $90,000 Cash dividend paid by…

Q: paid direct costs of P100,000 which includes P15,000 cost of issuing and registering new shares. The…

A: There is a Bargain Purchase of 160,000  (Working attached)

Q: On January 1, 2XX0, Waterfall Inc. acquired a 10% interest in Junior Corp. On January 1, 2XX1,…

A: Investment in associates refers to the type of investment that the firm makes in another company…

Q: each of the following independent situations, determine the dividends received deduction for the…

A: There are different limits for Dividend deductions for corporate  Limits are if below 20% can deduct…

Q: stock and P1,400,000 of retained earni O from its separate operations and pai reported income of…

A: The right answer is option D. P962,400

Q: What amount should Eduardo report as total revenue related to its investment in Letecia Company for…

A: 1. Preference shares have first right to get Dividend.  After that            comes ordinary shares.…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.…

A: SOLUTION- EXPLANATION- NET PROFIT IN 2019 = 300000 INCREASE IN INVESTMENT = 300000 *25%…

Q: On 1 July 2014. Ark Ltd acquired a 30% interest in Sign Ltd for $54,929,000. During the year ended…

A: The share of the parent company in the profits of its subsidiary is equal to the amount of adjusted…

Q: Poppy Corporation owns 60 percent of Seed Company's common shares. Balance sheet data for the…

A: Earnings per share is the earning that is generated by the equity shareholder per share the earning…

Q: Presented below are two independent situations: (a) Sandhill Inc. acquired 10% of the 420,000…

A: Whenever a company invests in another company and as a result, obtains significant influence in the…

Q: Tweet Inc. owns 10% of the stock of Gray Matter, Inc. Gray Matter, Inc. is a domestic corporation.…

A: The Dividends Received Deduction (DRD) is a tax deduction available to corporations for the…

Q: Magaro Inc. purchases 35% of Deseo corporation for P 600,000. At the end of the year, Deseo…

A: Investment:- An investment is considered as an asset or item which is acquired with the motive to…

Q: 1,900,000 Plant Assets 1,100,000 1,200,000 Current Liabilities (1,000,000) (1,000,00

A: Journal entries are the initial recording of all the monetary business transactions in a systematic…

Q: During the current year, Sea Corp reported gross income from operations of $100,000 and operating…

A: A situation in which a company's permitted tax deductions exceed its taxable revenue within a…

Q: On October 15, 2020, the Skyline Company received a liquidating dividend of P100,000 from David…

A: Formula: Dividend income = Total liquidating dividend x Ownership Percentage in the company.

Q: Problems 19 through 21 should be viewed as independent situations. They are based on the following…

A:

Q: On the 1/01/x3, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5…

A: The objective of the question is to calculate the group's investment in associate figure in its…

Q: In the December 21, 2021 consolidated statement of financial position, the net income attributable…

A: In the consolidated financial statement, the unrealized gain and loss in the inter-group transaction…

Q: aliant Corp is a C corporation that earned $5.2 per share before it paid any taxes. Valiant Corp.…

A: In C-corporation there is limited liability for owners of company and owners and company are two…

Q: Wendy Day Kite Company owns 40% of the outstanding stock of Strong String Company. During the…

A: Financial statements are condensed summaries of transactions communicated in the form of reports for…

Q: Ablue Company had 50,000 shares of P100 par authorized. During 2004, first year of operations, the…

A: The contributed capital includes the total capital value from the issuance of common stock and…

Q: 13. The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…

A: Solution:- Calculation of the  increase in equity in the statement of financial position of Resty…

Q: Small Company reported 20X7 net income of $40,000 and paid dividends of $15,000 during the year.…

A: In case of fair value method we should consider unrealized gain due to increase in fair value of…

Q: On January 1, 2015, P Corporation purchased 80% of S Company’s outstanding shares for ₱620,000. At…

A: Consolidated financial statement:  Consolidated financial statement is the financial statement…

Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…

A:

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: P Corporation paid $140,000 for a 70% interest in S Inc. on January 1, 2014, when S had Capital…

A: Non-controlling interest is the interest of an entity other than controlling in the subsidiary…

Q: M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares…

A: Introduction:If an investor company makes an investment between 20 to 50% in the investee company…

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: Price Corporation, Bucek Corporation, and Askews Corporation have the following income and expenses…

A: Step 1: Calculate the Taxable IncomeGather Information: You'll need the operating income and…

Q: Pearson Inc. reports net income earnings of $1,170,000 while paying $120,000 in cash dividends this…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: Presented below are two independent situations: (a) (b) Sheridan Inc. acquired 10% of the 417,000…

A: Journal entries are the transactions which are reported in the books of accounts primarily. It is…

Q: How much is the investment income for the current year?

A: Net income refers to the income earned after deducting the company’s expenditures from the company’s…

Q: set out below are the draft income statements of Panc ts subsidiary S for the year ended 31 December…

A: As per question S is a subsidiary Company of P.  Hence the transaction betwee both Company will…

Q: On January 1, 2008, Pedestal Company purchased 80% of the outstanding shares of Starlet

A: Working :-                       Net income of Starlet Co for 2008  :  P 100,000…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.