Bagley Incorporated's statement of financial position as at July 31, Year 4, is as follows: BAGLEY INCORPORATED STATEMENT OF FINANCIAL POSITION At July 31, Year 4 Plant and equipment (net) Patents Current assets Ordinary shares Retained earnings Long-term debt Current liabilities Carrying Amount $ 922,000 467,000 $ 1,389,000 194,000 508,000 402,000 285,000 $ 1,389,000 Fair Value $ 1,065,000 90,000 519,000 428,000 285,000 On August 1, Year 4, the directors of Bagley considered a takeover offer from Davis Inc., in which the corporation would sell all o assets and liabilities. Davis's costs of investigation and drawing up the merger agreement would amount to $25,500. Required: (a) Assume that Davis made a $1,292,200 cash payment to Bagley for its net assets. Prepare the journal entries in the accountin records of Davis to record the business combination. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

What is the net increase or (net decrease) in the identifiable assets of SD Corporation?a. 13,700,500b. 13,307,500c. 13,957,500d. 13,050,500

WAG PAPALOKO Inc. has the following balance sheet on January 1, 2018, which is the date of acquisition:   Assets   Liabilities and Equity Accounts Receivable 79,000   Current Liabilities 145,000 Inventory 112,000   Long-term notes 100,000 Other current assets 55,000   Ordinary share, P1 par 50,000 Equipment (net) 294,000   Share premium 200,000 Goodwill 30,000   Retained earnings 75,000 Total assets 570,000   Total liabilities and equity 570,000   On January 1, 2018, WAG PAPATINAG Corp. acquired the net assets of WAG PAPALOKO Inc. by issuing 7,000 shares of its P25 par value common stock. Subsequently, WAG PAPALOKO Inc. was liquidated and its assets and liabilities merged into WAG PAPATINAG Corp. WAG PAPATINAG Corp. and WAG PAPALOKO Inc. stocks were selling for P40 per share and P6 per share, respectively on January 1, 2018.   The book values of WAG PAPALOKO Inc.’s identifiable assets and liabilities equaled their…

On 1 July 2021, Xero Ltd acquired 90% of the issued shares of Accounting Ltd for $750,000 when the equity of Accounting Ltd consisted of: Share Capital $400,000 Retained Earnings $150,000 Asset Revaluation reserve $50,000 At the acquisition date all the identifiable assets and liabilities of Accounting Ltd were recorded at fair value except for the following assets: Carrying Amount Fair Value Equipment (Cost $100,000) $160,000 $200,000 Land $560,000 $700,000 The NCI at acquisition date is measured based on the proportionate share of the identifiable assets and liabilities in Accounting Ltd. The tax rate is 30%. Required Prepare Acquisition analysis as of 1 July 2021

The following book and fair values were available for Westmont Company as of March 1.     Book Value Fair Value Inventory $ 494,000   $ 449,500   Land   763,500     1,060,500   Buildings   1,975,000     2,303,500   Customer relationships   0     859,500   Accounts payable   (118,000 )   (118,000 ) Common stock   (2,000,000 )       Additional paid-in capital   (500,000 )       Retained earnings, 1/1   (427,000 )       Revenues   (486,000 )       Expenses   298,500             Arturo Company pays $4,060,000 cash and issues 29,600 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $31,200 and Arturo pays $49,000 for legal fees to complete the transaction.   Prepare Arturo’s journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry…

The following book and fair values were available for Westmont Company as of March 1                                                                  Book Value         Fair Value Inventory                                                $ 350,000          $ 298,250 Land                                                         820,500            1,085,250 Buildings                                                 2,040,000           2,361,000 Customer relationships                                  0                      871,500 Accounts payable                                  (105,000)              (105,000) Commom stock                                   (2,000,000) Additional paid-in capital                      (500,000) Retained earnings    1/1                        (425,500) Revenues                                               (496,000) Expenses                                                 316,000       Aturo pays cash of $4,380,000 to acquire Westmont. No stock is issued and…

B.On January 1, 2021, LASER LTD. acquired 70% of outstanding ordinary shares of JUSTICE INC. at a price of P210,000. On the same date, the net assets of JUSTICE INC. were reported at P260,000. On January 1, 2021, LASER LTD. reported retained earnings of P2,000,000 while JUSTICE INC. reported retained earnings of P200,000. All the assets and liabilities of JUSTICE INC. are fairly valued except machinery, which is undervalued by P80,000 and inventory which is overvalued by P10,000. The said machinery has remaining useful life of five years while 40% of the said inventory remained unsold at the end of 2021. For the year ended December 31, 2021, LASER LTD. reported net income of P1,000,000 and declared dividends of P200,000 in the separate financial statements while JUSTICE INC. reported net income of P150,000 and declared dividends of P20,000 in the separate financial statements. LASER LTD. accounted the investment in JUSTICE INC. using cost method in the separate financial statements.…

On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Items Current assets Noncurrent assets Total assets Current liabilities Long-term debt Stockholders' equity Total liabilities and equities Park $ 74,500 92,250 $ 166,750 $ 32,000 51,750 83,000 $166,750 Strand $ 16,050 46,200 $ 62,250 $ 12,250 0 50,000 $ 62,250 On January 2, Park borrowed $66,000 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $66,000 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). Required: On a consolidated balance sheet as of January 2, calculate the amounts for each of the following: a. Current assets b. Noncurrent assets c. Current…

Hw.44. The following information relates to Adele Ltd. Since the date of acquisition, Adele Ltd has held interests in multiple subsidiaries totalling DNCI of 25%, and INCI of 15%. The following summarised financial information is provided: Retained earnings at DOA $117,000 Retained earnings at 1/7/2021 $476,000 Current period profit for year ended 30/6/2022 $236,000 Required: a) Based on the financial information you have available, prepare the journal entries to record the allocation to NCI upon consolidation on 30 June, 2022. Your workings and narrations will be awarded marks. (show consolidation journals) b) Briefly explain what effect these journal entries have on the consolidated financial reports.

Tiger Ltd. has an authorized capital of 700,000 $1 ordinary shares, of which 300,000 have been issued as fully paid. The following information was extracted from the accounts for the year ended September 30, 2019: Details/Accts.  $ DR  $ CR Motor Vehicle at cost        1,750,000   Acc. Depreciation Motor Vehicle              450,000 Freehold premises at cost            400,000   Carriage inwards              35,500   Sales          4,500,000 Stock, October 1, 2018              95,000   Administration (Wages and Salaries)            170,000   Distribution (Wages and Salaries)            250,000   Motor vehicle running costs            350,000   Purchases            935,000   Returns inward              32,000   Returns outward                51,000 Directors’ remuneration            865,000   Auditors’ fees            120,000   General administrative expenses…