structure.comuses/21517/5/981/take/questions/1391597Equipment (net)450,00090,000Buildings (net)600,000120,000Land875,000100,000Common Stock300,000100,000Retained Earnings, 12/31/20800,000433,000The goodwill was determined to be impaired on December 31, 2021 by P20,000 which was based on the grossed-up goodwill.Determine the following account balances as of December 31, 2021 (3 years after acquisition). Fill-up the answers in the following order:11. Investment in Sagigilid Company (on Pag-ibig Corp's individual financial records)12. Non-controlling interest on the consolidated financial statements13. Consolidated Comprehensive Income14. Comprehensive income attributable to NCI15. Consolidated equipment (net)16. Consolidated buildings (net)17. Consolidated land18. Consolidated goodwill (net)19. Consolidated common stock20. Consolidated retained earnings, 12/31/2021PreviousPs m SY. 2021-2022Problem 3The following iInformation will be used in Question nos. 11-20uncementsPag-ibig Corporation acquired 70% of outstanding stocks of Sagigilid Company on January 1, 2019, for P450,000 in cash. Sagigilid Company had a book value of P480,000 on that date.NCI and goodwill were to be measured using the partial goodwill approach. However, an equipment with a 5-year life was overvalued by P30,000 on Sagigilid Company's financialstatements. Also, a building with a 15-year life and land were undervalued by P15,000 and P25,000 respectively. Subsequent to acquisition, Sagigilid Company reported the following:JesslonseButtonrences)YearCIDividends Paid201960,00012,000b OPAC202080,00030,0002021120,00050,000In accounting for investment, Pag-ibig Company uses the cost method. Selected accounts taken from the financial records of these two companies as of December 31, 2021, are as follows:Pag-ibig Corp.Sagigilid Co.Revenues-Operating500,000450,000Expenses350,000330,000Equipment (net)450,00090,000Buildings (net)600,000120,000Land875,000100,000Common Stock300,000100,000Retained Earnings. 12/31/2O800,000433,000The goodwill was determined to be impaired on December 31. 2021 by P20,000 which was based on the grossed-up goodwill.Determine the following account balances as of December 31, 2021 (3 years after acquisition). Fill-up the answers in the following order:11 Investment in Sagioilirl Comnany (on Pao-ihio Corn'sindividual financial records)29°C Rain sho... ^Ps

Impaired goodwill:A situation where the value of goodwill of a company has decreased from the value…

Determine the following account balances as of December 31, 2021 (3 years after acquisition). Fill-up the answers in the following order: 11. Investment in Sagigilid Company (on Pag-ibig Corp's individual financial records) 12. Non-controlling interest on the consolidated financial statements 13. Consolidated Comprehensive Income 14. Comprehensive income attributable to NCI 15. Consolidated equipment (net) 16. Consolidated buildings (net) 17. Consolidated land 18. Consolidated goodwill (net) 19. Consolidated common stock 20. Consolidated retained earnings, 12/31/2021

Determine the following account balances as of December 31, 2021 (3 years after acquisition). Fill-up the answers in the following order: 11. Investment in Sagigilid Company (on Pag-ibig Corp's individual financial records) 12. Non-controlling interest on the consolidated financial statements 13. Consolidated Comprehensive Income 14. Comprehensive income attributable to NCI 15. Consolidated equipment (net) 16. Consolidated buildings (net) 17. Consolidated land 18. Consolidated goodwill (net) 19. Consolidated common stock 20. Consolidated retained earnings, 12/31/2021

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 30E

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