Tali Co. Acquired 80% of Wind Corp.'s voting rights. The statements of financial position of both entitiesimmediately after the acquisition are shown below:Tali Co.Wind Corp.Investment in Subsidiary (cost)Other AssetsAssets430,0001,570,0002,000,000750,000750,000400,000310,00040,000Liabilities750,0001,000,000Ordinary Share CapitalRetained EarningsLiabilities and Stockholders' Equity250,0002,000,000750,000The fair value of Winds' assets is P50,000 more than the aggregate carrying amounts. Non-controlling interest ismeasured under the proportionate share method. How much is the consolidated total equity?

Step 1 Consolidated Equity means an amount equal to the aggregate book value of the assets of the…

Answered: he fair value of Winds' assets is…

he fair value of Winds' assets is PS50,000 more than the aggregate carrying amounts. Non-controlling interes neasured under the proportionate share method. How much is the consolidated total equity?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Required: (a) Prepare a correct consolidated income statement. (Leave no cells blank - be certain to…

A: In the consolidation profit and loss,, 99, 254); position: relative; display:…

Q: he following does not indicate an investor company's ability to significance an investee? A.…

A: The investment in subsidiiary or another company is said to be accounted for using the equity…

Q: 25. The other comprehensive income section shall present line items for amounts of other…

A: Other comprehensive income is the bottom part of the income statement where all unrealised gain or…

Q: Explain the effect of equity method on the consolidated income statement and statement of financial…

A: let us know about the EQUITY METHOD : When one company, the investor, significantly influences…

Q: When preparing the consolidated financial statements, which of the following should be deducted from…

A: Consolidated financial statements are the "financial statements of a gaggle within which the assets,…

Q: Which of the following costs of a business combination can be deducted from the value assigned to…

A: Solution Paid in capital is the payment received from the investor in exchange of an entity's stock…

Q: The amount attributable to every share outstanding in case a corporation is liquidated. A. book…

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: 1. What is an intercorporate share investments? a) Significance Influence b) Financial Assets vs…

A: Investments are the resources that the entity or individual has when capital is allocated for a…

Q: Investor company owns 35% of the shares in Investee company and has significant influence over the…

A: Investments in Equity Securities When the investor acquires common stock, the appropriate method…

Q: A subsidiary has (1) a convertible preferred stock and (2) a convertible bond. How are these items…

A: Earnings per share (EPS)represent the amount of income earned per share of outstanding common stock…

Q: What is the total amount of share premium to be reported by the surviving company? a. P1,000,000…

A: It is the difference between the issue price of a company's shares and their nominal value. It…

Q: For upstream sales the total amount of unrealized gains and losses are allocated between controlling…

A: Following is the answer to the given question

Q: Which of the following statements would best describe the numerator of the diluted earnings per…

A: In accounting diluted earnings per share (EPS) shows the impact of convertible securities (such as…

Q: Wnen presenting a consolidated statement of financial position, the non-controlling interest is:

A: Non-controlling interest is also sometimes written as NCI. It arises when someone holds less than…

Q: .Intrinsic valuation and relative valuation

A: Preference shares refer to the shares that enable the shareholders for receiving dividend that is…

Q: Shilpa tinot a director) receives a monthly salary of £3,500 from her employer, Larimar Ltd, where…

A: Employment income is income from remunerative work undertaken by the person as an employee in an…

Q: To arrive at the U.S. GAAP-based net income fi gures shown in Exhibit 3, Royal Ahold fully…

A: Under US GAAP, A company should consolidate another company's accounts while reporting only when its…

Q: Fixed Assets Turnover Ratio

A: Fixed asset turnover ratio is helpful in computing the return on investment on assets like plant,…

Q: n from the separ ome of P Compa as follows: ial position acco ..... ...

A: Given The percent of non-controlling interest ownership in S Company as of December 31, 2019.

Q: Case 1 Impairment Loss$ Case 2 Impairment Loss $

A: Impairment loss arises when an asset's recorded value surpasses its recoverable value. This…

Q: Required: a Compile a consolidated statement of profit or loss for P Ltd's group for the year ended…

A: Consolidated income statement is a statement which presents the income, expenses, revenues of the…

Q: A 70% owned entity declares and pays cash dividend. What effect does the dividend have on the…

A: Solution, A) Is correct Non effect on Retained earning whereas minority interest will decraese…

Q: For downstream sales the total amount of unrealized gains and losses are allocated between…

A: Downstream sales is the sales made by parent company to subsidiary company. Parent company is the…

Q: In a business combination, the (1) direct acquisition, (2) indirect acquisition, and (3) share…

A: IFRS 3 deals with the accounting when açquirer take control of business.Business combination are…

Q: When the conversion of bonds payable to common stock is recorded under the market value method and…

A: Journal entry will be - bonds payable debit…

Q: If P. company paid $360000 to acquire a part of S. company common stocks and if the positive…

A: The purchase consideration is the amount paid by the acquiring company to the subsidiary company in…

Q: Which of the following statements is TRUE? O The acquirer shall measure the identifiable assets…

A: As per IFRS 3 Acquisition Method shall be used for accounting businees combination. As per the IFRS…

Q: interest Corpttal 'business in pars 2.006. p b. Nopart egueement was made u weillteh. They…

A: First of all, it is important to understand that whenever a partnership firm is formed, both the…

Q: Q3. Assume the net profit reported by Bear Ltd and Panda Ltd as at Dec 31, 2018 were $80,000 and…

A: Consolidation is the sum of all items. Inventory to be adjusted taking difference of fair value and…

Q: f Kamfer Limited owned 52% of the outstanding ordinary shares of Maenetja Limited, which reporting…

A: Cost method is used only when the investor has no control over the invested entity it is recorded…

Q: 2. Which of the following is not included in comprehensive income? a. gains on reissuance of…

A: Comprehensive income: It includes all the changes in company's equity during a specified period…

Q: Zebra Corporation is a publicly traded company. Which method will Zebra use to account for compound…

A: A compound instrument is an instrument or bond which contains the option of converting the same into…

Q: Prepare and compute for the CONSOLIDATED EQUITY at the date of acquisition.

A: PROMDI CO. acquired the net assets of CARDO CO and SYANO CO PROMDI CO issues CARDO CO = 30000…

Q: account balance. Assume that nt of downstream intra-entity profits against its share of Sheridan's…

A: The Investment in Sheridan account balance can be determined by considering the various transactions…

Q: Can you give me an example of intra-equity asset transactions? How do you account for intra-equity…

A: Intra-equity asset transactions are transactions that occur between entities that are under common…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Tali Co. Acquired 80% of Wind Corp.'s voting rights. The statements of financial position of both entities
immediately after the acquisition are shown below:
Tali Co.
Wind Corp.
Investment in Subsidiary (cost)
Other Assets
Assets
430,000
1,570,000
2,000,000
750,000
750,000
400,000
310,000
40,000
Liabilities
750,000
1,000,000
Ordinary Share Capital
Retained Earnings
Liabilities and Stockholders' Equity
250,000
2,000,000
750,000
The fair value of Winds' assets is P50,000 more than the aggregate carrying amounts. Non-controlling interest is
measured under the proportionate share method. How much is the consolidated total equity?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How should preferred stock of a subsidiary be shown in a consolidated balance sheet in each case? a. If it is held 100 percent by the parent. b. If it is held 50 percent by the parent and 50 percent by outside interests c. If it is held 100 percent by outside interests.
The original issuance price is equal to: Par value only O Related Share Premium only Par value less Related Share Premium Par value plus Related Share Premium
Which of the following costs of a business combination can be included in the value charged to paid-in-capital in excess of par? direct and indiırect acquisition costs O direct acquisition costs direct acquisition costs and stock issue costs if stock is issued as consideration stock issue costs if stock is issued as consideration
50. Analyze the following: I – When a component of an entity was discontinued during the year, the component's operating loss of the current period should be included in income statement as part of revenue and expenses. II – If the fair value less cost of disposal is lower than the carrying amount of a non-current asset classified as held for sale, the difference is accounted for as an impairment loss. III – The effect of recording a 100% share dividend would be to leave working capital unaffected, decrease earnings per share and increase book value per share. Given these, we can conclude that: Group of answer choices Only statement II is false. Only statements I and III are true. Only statements I and II are true. Statement III is false.
In a consolidated statement of financial position, the non-controlling interest is shown: Group of answer choices As part of the total current liabilities of the group Separately within the equity section Separately within the non-current liabilities Separately within the non-current investments
If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: REQUIREMENTS:A. GoodwillB. Consolidated Total Assets at the date of acquisitionC. Consolidated Total Liabilities at the date of acquisitionD. Consolidated Equity at the date of acquisition
When a contingent consideration arising from a business combination is classified as equity, how is any change in its fair value accounted for if the difference arises due to a change in circumstances? Multiple Choice As a memorandum entry indicating that additional shares hed been isued, As an edjustment to an estimate included in the determination of net income. As an adjustment to consolidated contributed surplus. As an adiustment to the consideration naid for the subsidiarv
A parent company purchased all the outstanding bonds of its subsidiary. Will this cash transaction appear in the following sections of the consolidated statement of cash flows? <Operating><Investing><Financing><No Adjustment> * a. No; Yes; No; No b. No; No; Yes; No c. No; No; No; Yes d. Yes; No; No; No
a. Determine the goodwill or gain on bargain purchase from the above acquisition if the NCI is to be valued on a proportionate b. Determine the balance of the NCI in FC’s consolidated financial statements.