Please answer number 43 with complete solution.Thank you The following information is available as of that date:The fair value of net identifiable assets of Son Co. isP800,000.Ideal Inc. uses the proportionate share of the acquiree'snet identifiable assets to measure the non-controllinginterest.Which of the following statements is/are INCORRECT?a. The total goodwill from combination is zero.b. The gain on re-measurement is P240,000.c. The parent company (Ideal Inc.) shall debit investment insubsidiary account for P560,000.d. The investment in associate shall be credited for P200,000.с.e. All of the above. 35% interest in Son Company's 250,000 ordinary shares for P161,500.dividends of P10,000 to its shareholders. On April 1, 2023, SonCompany re-acquired its own 125,000 shares, giving Ideal Inc, controlOn December 31, 2022, Son has a net income of P120,000 and paid43. On January 3, 2022, Ideal Inc. purchased 87,500 shares representing35% interest in Son Company's 250,000 ordinary shares for P161,500.Ideal accounts for the investment under the equity method.On December 31, 2022, Son has a net income of P120,000 and paiedividends of P10,000 to its shareholders. On April 1, 2023, Sonover Son Company.

When son company reacquired his own shares ,then it becomes subsidiary of Ideal co.

Company re-acquired its own 125,000 shares, giving Ideal Inc contro! 43. On January 3, 2022, Ideal Inc. purchased 87,500 shares representing 35% interest in Son Company's 250,000 ordinary shares for P161,500. Ideal accounts for the investment under the equity method. On December 31, 2022, Son has a net income of P120,000 and pare dividends of Pl10,000 to its shareholders. On April 1, 2023, So over Son Company.

Company re-acquired its own 125,000 shares, giving Ideal Inc contro! 43. On January 3, 2022, Ideal Inc. purchased 87,500 shares representing 35% interest in Son Company's 250,000 ordinary shares for P161,500. Ideal accounts for the investment under the equity method. On December 31, 2022, Son has a net income of P120,000 and pare dividends of Pl10,000 to its shareholders. On April 1, 2023, So over Son Company.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...

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