Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.
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Q: Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.
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Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.
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- On August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which became a division of Southampton Co. Brighton Company reported the followir statement of financial position at the time of the acquisition: Brighton Company Statement of Financial Position Assets Equity and Liabilities Share capital- Plant assets (ne t) $1,350,000 $1,150,000 ordinary 235,000 Retained earnings Inventory Receivables 1,070,000 587.000 800,000 Accounts payable Cash 422.000 Total assets $2.807.000 Total equity and liabilities $2.807.000 An appraisal indicated that the fair value of the inventory was $372,000 and the fair value of the plant assets was $1,550,000. The agreed purchase price was $3,600,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2.550,000. The recoverable…The working paper eliminating entry recorded by VEE Co. on January 1, 2030, the date of acquisition of its subsidiary follows(amounts in dollars): Common stock-Acquiring Company 200,000 APIC-Acquiring Company 300,000 Retained Earnings-Acquiring Company 250,000 Inventory 75,000 Plant Assets (net) 105,000 Patent 70,000 Goodwill 200,000 Investment in Acquiring Company 920,000 Non-controlling interest in Acquired Company 280,000 $30,000 of the recorded goodwill belongs to the non-controlling interest. What is the percentage of outstanding voting shares of the subsidiary acquired by the parent?The working paper eliminating entry recorded by LetLenilead2022 on January 1, 2022, date of acquisition of the subsidiary follows: Common Stock - Subsidiary Company 200,000 APIC – Subsidiary Company 300,000 Retained earnings – Subsidiary Company 250,000 Inventory 75,000 Fixed Assets (Net) 105,000 Patent 70,000 Goodwill 200,000 Investment in Subsidiary 920,000 Non-controlling Interest 280,000 Of the goodwill recorded, 30,000 belongs to the NCI. Determine the percentage of the voting shares of the subsidiary acquired by LetLenilead2022.
- The working paper eliminating entry recorded by Acquired Company on January 1, 2017, the date of acquisition of its subsidiary follows: 图 Common stock-Acquiring Company APIC-Acquiring Company Retained Earnings-Acquiring Company 200,000 300,000 250,000 Inventory 75,000 Plant Assets (net) 105,000 Patent 70,000 Goodwill 200,000 Investment in Acquiring Company Non-controlling interest in Acquired Company 920,000 280,000 Of the goodwill recorded, 30,000 belong to the non-controlling interest. Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.DEF company acquired the assets and assumed liabilities of GHI Company on January 1, 2022 by paying P3,000,000 and issuing its own ordinary shares. The comparison of the acquirer’s balance sheet before and after business combination transaction is as follows: Balance sheet before Acquisition Balance Sheet after Acquisition Total Assets 13,545,000 17,595,000 Total Liabilities 3,760,000 ? Total SHE 9,785,000 ? The fair value of the identifiable net asset of the acquiree is P4,835,000 and the book value of acquiree’s liabilities amounting to P1,300,000 is lower compared to its fair value by P350,000. DEF company paid acquisition related costs amounting to P50,000. What is the fair market value of the ordinary shares issued by the acquirer? a. 2,500,000 b. 2,400,000 c. 2,480,000 d. 2,450,000Accounting Company A acquires Company B on May 1, 2016. Please prepare the journal entry to record Consideration Transferred. Total assets acquired 28,783 Total liabilities assumed 9,978 Net assets acquired 18,805 Non-controlling interest (155) Total net consideration transferred 18,650 Common Stock Other capital Shares issued for merger 104 19,696
- Question 3: Prepare acquisition analysis and Consolidation worksheet entries Syd Ltd acquired all the issued shares (Cum-div.) of Mel Ltd on 1 July 2020. At this date the financial position of Matt Ltd was as follows: Carrying Amount Fair Value Plant $300 000 270 000 Accumulated Depreciation (60 000) Account Receivables 35 200 35 200 Cash 15 000 15 000 Inventories 15 600 19 600 305 800 Share Capital 230 000 General Reserve 23 400 Retained Earnings 24 200 Provisions of Employee benefits 19 200 19 200 Dividend Payable 9 000 9 000 305 800 Additional information: The assets of Mel Ltd did not include a patent that was valued by Syd Ltd at $12 000. Its useful life was considered to be 6 years, with benefits being received equally over that period. The plant was considered to have a further 10-year life and is depreciated on…Do not copy form bartleby On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable…Question 3: Prepare acquisition analysis and Consolidation worksheet entries Syd Ltd acquired all the issued shares (Cum-div.) of Mel Ltd on 1 July 2020. At this date the financial position of Matt Ltd was as follows: Carrying Amount Fair ValuePlant $300 000 270 000Accumulated Depreciation (60 000) Account Receivables 25 200 25 200Cash 15 000 15 000Inventories 15 600 19 600295 800 Share Capital 220 000 General Reserve 23 400 Retained Earnings 24 200 Provisions of Employee benefits 19 200 19 200Dividend Payable 9 000 9 000295 800 Additional information: The assets of Mel Ltd did not include a patent that was valued by Syd Ltd at $12 000. Its useful life was considered to be 6 years, with benefits being received equally over that period. The plant was considered to have a further 10-year life and is depreciated on a straight-line basis. All the pre-acquisition inventories were not sold by 30 June 2021. An interim dividend of $10,000 paid by Mel Ltd in September 2020. Syd Ltd declared a…
- TWICE Company acquired BTS Company on February 6, 2022. The following out of pocket costs of the combination are as follows:Legal fees for business combination contract- P174,700Audit fees for SEC registration of share issue- 198,400Printing cost of stock certificates- 144,900Broker's fee- 135,000Accountant's fee for pre-acquisition audit- 161,000Other direct cost of acquisition- 90,400General and allocated expenses- 115,300Stock exchange listing fees in issuing shares- 172,000What is the amount of expense to be recognized in the Statement of Comprehensive Income for the year 2022?Prepare journal entries on December 31, 2020 and December Problem 15-4 (IAA) Transitory Company acquired the following equity securities Cost Market December 31, 2020 Moon Company Star Company Sun Company 200,000 400,000 600,000 120,000 280,000 650,000 December 31, 2021 Moon Company Star Company Sun Company 200,000 400,000 600,000 220,000 300,000 580,000 The equity securities do not qualify as held for trading. The entity has elected irrevocably to present changes in fair value in other comprehensive income. Required: 31, 2021. 426Parent Company acquired Sub Company on February 6, 2022. The following out of pocket costs of the combination are as follows:Legal fees for business combination contract- P174,700Audit fees for SEC registration of share issue- 198,400Printing cost of stock certificates- 144,900Broker's fee- 135,000Accountant's fee for pre-acquisition audit- 161,000Other direct cost of acquisition- 90,400General and allocated expenses- 115,300Stock exchange listing fees in issuing shares- 172,000What is the amount of expense to be recognized in the Statement of Comprehensive Income for the year 2022? A. 1,046,800 B. 676,400 C. 874,800 D. 848,400
