Honda Company acquired 70% of the outstanding stock of Hyundai Co. on January 1, 2022. The consolidated balance sheet prepared immediately after the business combination contained the following: Current Assets - 146,000 Fixed Assets - Net - 360,000 Goodwill - 18,100 Liabilities - 28,000 Capital Stock- 350,000 Retained Earnings - 111,000 NCI - 35,100 On acquisition date, Hyundai's Fixed assets were under depreciated by 10,000. The balance of the excess payment was ascribed to goodwill. 24. How much is the cost of investment paid by Honda in acquiring 70% interest in Hyundai?

On January 1, 2024, Flower Company purchased 100% of the common stock of Cornell Company for $380,000 cash. Fair values differed from book values as follows:     Fair value Inventory $45,000 Land  50,000 Buildings 200,000 Bonds Payable 95,000     The trial balances of the companies at the acquisition date are as follows:   Trial Balance   Parent Sub. Account Titles Company Company Assets:     Inventory 150,000 30,000 Cash 639,000 165,000 Investment in Sub. Company 380,000   Land 20,000 30,000 Buildings, net 250,000 180,000 Goodwill 40,000   Liabilities and Equity:     Current Liabilities 191,000 65,000 Bonds Payable 500,000 100,000 Common Stock 100,000 50,000 Other Paid-in Capital 150,000 70,000 Retained Earnings 538,000 120,000     Which of the following is not one of the eliminations and adjustments included on the consolidation worksheet…

Putin Company acquired the assets and assumed the liabilities of Joni Company on January 1, 2018, paying OMR 4,500,000 cash. Immediately prior to the acquisition, Joni Company's balance sheet was as follows:                                                   BOOK VALUE FAIR VALUE             Accounts receivable                        240,000              220,000             Inventory                                        290,000              320,000             Land                                                960,000           1,508,000             Buildings                                      1,020,000           1,392,000                   Total                                       2,510,000           3,440,000               Accounts payable                           270,000              270,000             Note payable                                   600,000              600,000             Common stock, $5 par                    420,000             Other contributed capital…

On July 31, 2020, Ivanhoe Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Ivanhoe. Conchita reported the following balance sheet at the time of the acquisition. Current assets   $750,000   Current liabilities   $500,000 Noncurrent assets   2,700,000   Long-term liabilities   400,000    Total assets   $3,450,000   Stockholders’ equity   2,550,000            Total liabilities and stockholders’ equity   $3,450,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,755,000. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2020, Conchita reports the following balance sheet information. Current assets   $480,000   Noncurrent assets…

On May 1, Freeman Company agreed to sell the assets of its Footwear Division to Albanese Incorporated for $97 million. The sale was completed on December 31, 2024. The following additional facts pertain to the transaction: • The Footwear Division qualifies as a component of the entity according to GAAP regarding discontinued operations. • The book value of Footwear's assets totaled $65 million on the date of the sale. • Footwear's operating income was a pre-tax loss of $14 million in 2024. . Freeman's income tax rate is 25%. In the income statement for the year ended December 31, 2024, Freeman Company would report income from discontinued operations of:

On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000.At the time of the acquisition, the book value of Scann's assets and liabilities was equal to the fair value except for equipment that was undervalued $80,000 with a four-year remaining useful life and inventories that were undervalued $20,000 and sold in 2018. Panorama separate net income in 2018 and 2019 was $1,100,000 and $1,150,000, respectively. Scann separate net income in 2018 and 2019 was $300,000 and $360,000, respectively. Dividend payments by Scann in 2018 and 2019 were $60,000 and $60,000, respectively   Required:  Using equity method,   Calculate Investment in Scann shown on Panorama's ledger at December 31, 2018 and 2019. Calculate Investment in Scann shown on the consolidated statements at December 31, 2018 and 2019. Calculate consolidated net income for 2018 and 2019. Calculate Noncontrolling interest balance on Panorama's ledger at December 31, 2018 and 2019. Calculate Noncontrolling…

LGM Motors acquired 80% of NS Service Center outstanding shares on January 1, 2022 by paying cash. The consolidated statement of financial position showed the following balances at the date of acquisition. Consolidated Balances Total Assets Total Liabilities Amount 15,670,000 4,575,000 Total Shareholder's Equity The book value of the net assets of NS Services Center is P4,500,000. The assets of NS Service Center are fairly valued except for the following: • Patent on the product that is deemed worthless, P50,000. • Goodwill of P150,000. • Unrecognized identifiable R&D of P75,000. The fair value of the non-controlling interest is 705,000 and the book value of LGM's equity balance is P9,500,.000. On December 31, 2022 the following information were provided by NS Services Center: • Net income of 400,000 was recognized. • Patents remaining useful life is 4 years. • Pre-existing goodwill presented above was impaired with a current value of 120,000. • Dividends were declared amounting to…

On January 2, 2020, Sheffield Company acquired 90% of the outstanding common stock of Wildhorse Company for $459,000 cash. Just before the acquisition, the balance sheets of the two companies were as follows: Sheffield Wildhorse Cash $630,000 $180,000 Accounts Receivable (net) 405,000 74,000 Inventory 275,000 130,000 Plant and Equipment (net) 980,000 210,000 Land 205,000 88,000 Total Assets $2,495,000 $682,000 Accounts Payable $248,000 $144,000 Mortgage Payable 150,000 100,000 Common Stock, $2 par value 1,030,000 190,000 Other Contributed Capital 590,000 55,000 Retained Earnings 477,000 193,000 Total Equities $2,495,000 $682,000 The fair values of Wildhorse's assets and liabilities are equal to their book values with the exception of land. Cash Accounts Receivable Inventory Plant and Equipment Land. Total Assets Liabilities Accounts Payable Mortgage Payable Total Liabilities Stockholder's Equity Noncontrolling Interest Common Stock SHEFFIELD COMPANY AND SUBSIDIARY Consolidated Balance…

On January 1, 2021, Flesh-n-Bone Corporation acquired 30% of Doug Corporation's 200,000 outstanding shares at P50 per share. Doug's net assets had a book value on the same date at P8,200,000. On the acquisition date, the following assets were deemed understated: Building having a remaining useful life of 20 years was understated by P1,500,000. Equipment having a remaining life of 10 years was understated by P500,000. Doug reported net income for the year at P2,000,000 and paid cash dividends of P10 per share by December 31. 20. How much investment income should be reported in Flesh-n-Bone Corporation's profit or loss for 2021? a. 600,000 b. 577,500 c. 622,500 d. 562,500 21. What is the carrying amount of the investment in Doug as of December 31, 2021? a. 3,562,500 b. 3,000,000 c. 3,622,500 d. 3,022,500 The answer for number 20 is Letter C and for number 21 is Letter D. Please provide the solution for the two items showing the correct answers above.

On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,500,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 7,500,000 $ 9,000,000 Property, plant, and equipment 12,500,000 15,500,000 Other assets 1,150,000 1,650,000 Current liabilities 5,500,000 5,500,000 Long-term liabilities 7,500,000 7,000,000 Required: Calculate the amount paid for goodwill.