Company R acquires 80% of Company S for $400,000. What is the fair market value of Company S?
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Company R acquires 80% of Company S for $400,000. What is the fair market value of Company S?
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- Assume Investor A pays $900,000 for 100% ownership of Company B. At the time of the acquisition, Company B had a book value of $650,000. The Excess of FVNI over BVNA was $325,000. What was the FVNIA?XYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 b. P900,000 c. P90,000 d. P0 2. Assuming the fair value of the land is not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a. P810,000 b. P900,000 c. P90,000 d. P0 3. Assuming both the fair value of the land and the shares are not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a.P810,000 b. P900,000 c.P90,000 d. POXYZ Ltd acquires 100 per cent of Red-X Ltd on 1 July 2021. XYZ Ltd pays the shareholders of Red-X Ltd the following consideration: Cash 70 000 Plant and equipment fair value $250 000; carrying amount in the books of ABC Ltd $170 000 Land fair value $300 000; carrying amount in the books of ABC Ltd $200 000 There are also legal fees of $190 000 involved in acquiring Red-X Ltd. On 1 July 2021 Red-X Ltd’s statement of financial position shows total assets of $300 000 and liabilities of $300 000. The fair value of the assets is $800 000. Required: Has any goodwill been acquired and, if so, how much? And discuss the potential for including associated legal fees into the cost of acquiring Red-X using appropriate accounting standard.
- 1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date?XYZ Ltd acquires 100 per cent of Red-X Ltd on 1 July 2021. XYZ Ltd pays the shareholders of Red-X Ltd the following consideration: Cash 79 100 Plant and equipment fair value $282 500; carrying amount in the books of ABC Ltd $192 100 Land fair value $339 000; carrying amount in the books of ABC Ltd $226 000 There are also legal fees of $214 700 involved in acquiring Red-X Ltd. On 1 July 2021, Red-X Ltd’s statement of financial position shows total assets of $339 000 and liabilities of $339 000. The fair value of the assets is $904 000. Required: Has any goodwill been acquired, and, if so, how much? And discuss the potential for including associated legal fees into the cost of acquiring Red-X using appropriate accounting standardsXYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 P900,000 b. c. P90,000 d. P0 2. Assuming the fair value of the land is not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a.P810,000 B.P900,000 C.P90,000 d. P0 3. Assuming both the fair value of the land and the shares are not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land.* a.P810,000 b.P900,000 c.P90,000 d.PO
- Company X acquired 100% of the voting shares of Company Y for $137,500 on 1/1/2022. The fair value of the net assets of Company Y at the date of acquisition was $150,000. This is an example of a(n): Select one: O O FELIC a. revaluation adjustment b. bargain purchase c. extraordinary loss d. positive differential idCarla Vista is having liquidity issues and must sell its business. The company's total assets have a fair value of $1150000 and its liabilities have a fair value of $164000. If Sunland, Inc. purchases the company for $360000, how much if any, will Sunland record as a gain on acquisition? $3600000 $986000 $626000 $ -0-ABC Ltd acquires 100 per cent of RedCarpet Ltd on 1 July 2021. ABC Ltd pays the shareholders ofRedCarpet Ltd the following consideration:Cash 35 000Plant and equipment fair value $125 000; carrying amount in the books of ABCLtd $85 000Land fair value $150 000; carrying amount in the books of ABCLtd $100 000There are also legal fees of $95 000 involved in acquiring RedCarpet Ltd.On 1 July 2021 RedCarpet Ltd’s statement of financial position shows total assets of $300 000 andliabilities of $150 000. The fair value of the assets is $400 000.Required:a) Has any goodwill been acquired and, if so, how much?b) And discuss the potential for including associated legal fees into the cost of acquiringRedCarpet using appropriate accounting standard.
- ABC Ltd acquires 100 per cent of RedCarpet Ltd on 1 July 2021. ABC Ltd pays the shareholders ofRedCarpet Ltd the following consideration:Cash 35 000Plant and equipment fair value $125 000; carrying amount in the books of ABCLtd $85 000Land fair value $150 000; carrying amount in the books of ABCLtd $100 000There are also legal fees of $95 000 involved in acquiring RedCarpet Ltd.On 1 July 2021 RedCarpet Ltd’s statement of financial position shows total assets of $300 000 andliabilities of $150 000. The fair value of the assets is $400 000.Required:b) And discuss the potential for including associated legal fees into the cost of acquiringRedCarpet using appropriate accounting standard.6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the transaction, the acquire had P800,000 of liabilities The assets of the acquiree at fair value were $1,900,000 for current assets and P1,600,000 for noncurrent assets. What is the amount of gain on bargain purchase? a. P 700,000 b. P-700,000 c. P 800,000 d. P-800,000The market values of Alpha Corporation and Gamma Corporation are $2,500 and $900, respectively. Assume Alpha acquires Gamma at a cost of $1,000 and the transaction creates $100 in synergy. What would be the NPV of this acquisition to Alpha? Multiple Choice $0 $150 $50 $100 $125