Answered: balance in Tuao’s investment in Abulug…

Business

Accounting

balance in Tuao’s investment in Abulug Company

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2020, MNO Company acquired 250,000 ordinary shares of PQR Company at P45 per share.At the time of purchase, PQR Company had outstanding1,000,000 shares with a carrying amount of P30,000,000. The following information pertains to year 2020: Net income of CD Company 3,100,500 MNO Company received cash dividend from PQRCompany 2.50 per ordinary share Market Value of PQR Company's shares 35 MNO Company has no significant influence and has elected irrevocably to measure the investment at fair value through other comprehensive income.How much is the unrealized gain/(loss) on financial asset-OCI at year-end?
Strickland Industries purchased a 30% interest in Spartan, Inc. for P600,000. Spartan, Inc. has 100,000 P10 par value ordinary shares outstanding. This investment enables Strickland to exert significant influence over Spartan. During the year, Spartan earned net income of P360,000 and paid dividends of P120,000; Strickland earned net income of P48,000 and paid dividends of P160,000. At the end of the year, the shares of Spartan were trading on an organized exchange for P22 per share. On Strickland’s year-end statement of financial position, its investment in Spartan, Inc. will be valued at P600,000 P660,000 P672,000 P696,000
Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold inventories that cost $50,000 to Hani Lid for $SE.000. At the end of the financial year, beingjune 24 quarter of the inventories were sold by Hani Ltd to entities external to the group. In relation to this intragroup transaction, which of the following statement is correct? O Consolidated sales to be eliminated by $50,000 O Consolidated sales to be added by $58,000 O Consolidated profit to be oliminated by $6,000 O Consolidated profit to be eliminated by $8,000
Entity G acquired a 40% interest in Pokus Corp. for P1,700,000 on January 1,2021. The shareholders' equality of Pokus Corp. on January 1 and December 31, 2021 is presented below: Share capital (January 1) P3,000,000 (December 31) P3,000,000 Revaluation surplus (January 1) - (December 31) P1,300,000 Retained earnings (January 1) P1,000,000 (December 31) P1,500,000 On January 1, 2021, all the identifiable assets and liabilities of Pokus Corp. were recorded at fair value. Pokus Corp. reported profit before income tax of P1,000,000 and paid dividends of P150,000 to shareholders during the current year. The tax rate is 35% The revaluation surplus is the result of the revaluation of land recognized by Pokus Corp. on December 31,2021. Pokus presents other comprehensive income net of applicable income tax. Additionally, depreciation is provided by Pokus Corp. on the diminishing balance method whereas Entity G uses the staright-line. Had Pokus Corp. used the straight line, the acuumulated…
BabyM owns 70% of 2Joints outstanding ordinary shares. 2Joints in turn, owns 20% investment in Pacman Co. During 2021, BabyM earned a net income of P320,600 from its own operations while 2Joints suffered a loss of P60,000 excluding its share in the earning of its affiliates if any. Pacman reported a net income of P43,500. 2Joints declared dividends of P250,000 from its accumulated profits in previous years. What is the consolidated profit for the year 2021? Select the correct response: 267,190 261,100 269, 300 284,690
On January 1, 20x1, AAA Co. acquired 30% ownership interest in BBB, Inc. for ₱200,000. Because the investment gave AAA significant influence over BBB, the investment was accounted for under the equity method in accordance with PAS 28.From 20x1 to the end of 20x3, AAA recognized ₱100,000 net share in the profits of the associate and ₱20,000 share in dividends. Therefore, the carrying amount of the investment in associate account on January 1, 20x3, is ₱280,000.On January 1, 20x4, AAA acquired additional 60% ownership interest BBB, Inc. for ₱1,600,000. As of this date, AAA has identified the following:a. The previously held 30% interest has a fair value of ₱360,000.b. BBB’s net identifiable assets have a fair value of ₱2,000,000.c. AAA elected to measure non-controlling interests at the non-controlling interest’s proportionate share of BBB’s identifiable net assets.Requirement: Compute for the goodwill.
Sailor Berhad acquired all the shares in Mon Berhad on 31 December 2022 for a cost of RM900,000. The statement of financial poistion of both companies for the year ended 31 December 20221 were as follows: Non-current assets Investment in Mon Berhad at cost Current assets Ordinary share Retained earnings Current liabilities Sailor Berhad RM'000 1,600 900 380 2,880 1,000 1,580 300 2,880 Mon Berhad RM'000 750 300 1,050 500 300 250 1,050 Required: Explain by way of calculation on how to prepare the consolidated statement of financial position for the group as at 31 December 2022.
Ashong Plc has two subsidiaries, Yvonne Plc and Wett Plc. It purchased 10,000 shares in Yvonne Plc on 1 January 2015 for GH¢35,000 when the retained earnings of Yvonne Plc stood at GH¢21,000. It purchased 15,000 shares in Wett Plc for GH¢30,000 on 31 December 2015 when the retained earnings of Wett Plc stood at GH¢16,000. The issued share capital (all issued at GHC 1 each ) of the two subsidiaries is as follows:2Yvonne Plc GH¢15,000Wett Plc GH¢20,000By the end of 2018, goodwill impairment losses totaled GH¢4,000.What is the carrying amount of goodwill in the consolidated statement of financial position at 31 December 2018 ?
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P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S Limited on 1 January20.9 and paid R100 000 cash and transferred 10 000 ordinary equity shares in W Limited, with a market value of R4 pershare, to settle the purchase price of R140 000 for the acquisition of an 80% interest.How much will be recorded as the Investment in S Ltd in the separate financial statements of S Ltd?Select one:a.R100 000b.R110 000c.R140 000d.R80 000
Alex Ltd. Is taken over by Billy Ltd. On the following terms: The assets and liabilities of Alex Ltd, shall be valued at P3,000,000 and P1,000,000. P5,000 shall be paid in cash and the balance of consideration shall be discharged by issue of shares of P10 each at a premium of 50%. Show the Calculation of purchase consideration and state the number of shares issued to the shareholders of Alex Ltd.
On January 1, 2021, Garcia Co., a U.S. corporation with the U.S. dollar as its functional currency, established Fine Co. as a subsidiary. Fine is located in Special Country, and its functional currency is the LCU. Fine is engaged in the following transactions during 2021: January 1, 2021 Issued common stock for 500,000 LCU July 25, 2021 Sold a patent at a gain of 50,000 LCU October 1, 2021 Paid dividends of 60,000 LCU Fine Co.’s operating revenues and expenses for 2021 were 900,000 LCU and 700,000 LCU, respectively. The appropriate exchange rates were: January 1, 2021: 1 LCU = $2.45 July 25, 2021: 1 LCU = $2.15 October 1, 2021: 1 LCU = $2.54 December 31, 2021: 1 LCU = $2.65 Average for 2021: 1 LCU = $2.41 Required: Calculate the translation adjustment for Fine Co. (Round your answers to the nearest whole dollar.)