On January 1, ABC Acquired 60 percent of the outstandingvoting stock of XYZ for P301,500 cash consideration. Theremaining 40 percent of XYZ had an acquisition date fairvalue of P138,500. On January 1, XYZ possessed equipment(5-year life) that was undervalued on its books P25,000.XYZ also had developed several secret formulas that ABCassessed at P50,000. Theses formulas, although notrecorded on XYZ's financial records, were estimated tohave a 20-year future life. ABC also determined that theinventory of XYZ is overvalued by P10,000. 80% of theseinventories remain unsold by the end of the year. As ofDecember 31, the financial statements appeared as follows:АВСXYZP (300, 000)P (200, 000)Revenues (from sales anddividends)Cost of goods soldExpenses140, 00020, 000P (140, 000)80, 00010, 000P (110, 000)Net IncomeRetained eamings 1/1Net IncomeDividends paidRetained eamings 12/31P (300, 000)(140, 000)-0-P (150, 000)(110, 000)10,000 ||P (250, 000)P (440, 000)P 210, 000150, 000301,500398,500P 1,060, 000Р90, 000110, 000Cash and ReceivablesInventoryInvestment in SSEquipment (net)Total Assets-0-300, 000P500, 000P (420, 000)(200, 000)(440, 000)P (1,060,000)P (150, 000)(100, 000)(250, 000)P (500, 000)LiabilitiesCommon stockRetained earmings 12/31Total Liabilities and EquitiesDetermine the consolidated expenses to be reportedfor the year.Your answer

Consolidated expenses are those expenses which has been incurred by the company which has been…

Answered: Determine the consolidated expenses to…

Business

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Determine the consolidated expenses to be reported for the year.

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, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: * Determine the net income (net loss) attributable to the non-controlling interest.
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: Determine the consolidated assets as of December 31.
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: АВС XYZ P (300, 000) Revenues (from sales and dividends) Cost of goods sold Expenses Net Income P (200, 000) 140, 000 20, 000 P (140, 000) 80, 000 10, 000 Р (110, 000) P (300, 000) (140, 000) -0- P (150, 000) (110, 000) 10,000 P (250, 000) Retained eamings 1/1 Net Income Dividends paid Retained eamings 12/31 P (440, 000) P…
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: * REQUIRED: Determine the consolidated assets as of December 31
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: As an independent case, assume that the goodwill is impaired by P5,000 by December 31, determine the net income/(net loss) attributable to the controlling interest.
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: * АВС XYZ P (300, 000) P (200, 000) Revenues (from sales and dividends) Cost of goods sold Expenses Net Income 140, 000 20, 000 P (140, 000) 80, 000 10, 000 P (110, 000) P (300, 000) (140, 000) -0- P (150, 000) (110, 000) 10,000 P (250, 000) Retained eamings 1/1 Net Income Dividends paid Retained eamings 12/31 P (440, 000)…
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: As an independent case, assume that the goodwill is impaired by P5,000 by December 31, determine the net income/(net loss) attributable to the controlling interest. Your answer
On January 1, Fawaz Co. acquired 60% of the outstanding voting stock of Bambi for $26,000 cash consideration. The remaining 40% percent of Bambi had an acquisition date fair value of $6,500. On January 1, Bambi possessed 5-year life equipment that was undervalued in its books by $2,500. Bambi also had developed several secret formulas that Fawaz assessed at $5,000. These formulas, although not recorded on Bambi's financial records, were estimated to have a 20-year future life. Fawaz also determined that the inventory of Bambi is overvalued by $1,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statement is as follows: Fawaz (in dollars) Bambi (in dollars) Revenues (from sales and individuals) -30,000 -20,000 Cost of goods sold 14,000 8,000 Expenses 2,000 1,000 Net Income -14,000 -11,000 Retained earnings-1/1 -30,000 -15,000 Net Income -14,000 -11,000 Dividends Paid - 1,000 Retained Earnings-12/31 -44,000…
3. On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. Determine the net income (net loss) attributable to the non-controlling interest. As of December 31, the financial statements appeared as follows:
On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash consideration. The remaining 40 percent of SS had an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5-year life) that was undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at P50,000. Theses formulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determined that the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: ВВ SS Revenues (from sales and dividends) Cost of goods sold P (300, 000) P (200, 000) 140, 000 20, 000 80, 000 10, 000 Expenses Net Income P (140, 000) P (110, 000) Retained earnings 1/1 P (300, 000) P (150, 000) (110, 000) 10,000 Net Income (140, 000) Dividends paid Retained earnings 12/31 -0- P (440, 000) P (250, 000) Cash and…
On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash consideration. The remaining 40 percent of SS had an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5-year life) that was undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at P50,000. Theses formulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determined that the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: 1) From the data below, determine the net income/(net loss) attributable to the non-controlling interest. 2) From the data below, determine the consolidated assets as of December 31 and the consolidated expenses to be reported for the year. 3) From the data below, determine the net income/(net loss) attributable to the parent.
On January 1, 2022, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmor's shares continued to trade at a total value of $210,000. The new subsidiary reported common stock of $300,000 on that date, with retained earnings of $180,000. A patent was undervalued in the company's financial records by $30,000. This patent had a five-year remaining life. Goodwill of $190,000 was recognized and allocated proportionately to the controlling and noncontrolling interests. Bandmor earns net income and declares cash dividends as follows: Year Net Income $ 75,000 2022 2023 96,000 2024 110,000 On December 31, 2024, Telconnect owes $22,000 to Bandmor. Dividends $ 39,000 44,000 60,000 Required: a. If Telconnect has applied the equity method, what consolidation entries are needed as of December 31, 2024? b. If Telconnect has applied the initial value method, what Entry *C is needed for a 2024 consolidation? c. If Telconnect has applied the partial equity…