n January 1, 2022, Entity A, a small-medium enterprise, invested P400,000 for a 30% interest in a joint venture. Assume the INDEPENDENT CASES: For the year ended December 31, 2022, the joint venture reported a net loss of P100,000. The fair value of the investment was P390,000 and the cost to sell was P25,000. There was a public price quotation for the joint venture.   Entity A opted to use the equity model. What is the balance of the Investment in Joint Venture account to be reported at December 31, 2022?

Kochin Corporation (KC) owns an 85% stake in Doha Corporation (DC). On 1 January 20XX, KC decided to sell its 50% interest in DC to a third party in exchange for € 600,000 in cash. On the disposal date, DC's fair value amounted to € 1,000,000. Furthermore, in KC's consolidated financial statements, the carrying amount of DC's net assets is € 1,000,000 and the carrying value of non-controlling interests in DC (including non-controlling interests' share of accumulated other comprehensive income) is € 100,000. As a result of this transaction, KC lost control of DC but retained 35% interest in the previous subsidiary, amounting to € 350,000 as of that date.  Instructions: 1. Discuss and determine the accounting treatment for recording the transaction in accordance with IFRS 10 2.Calculate how much profit or loss from the transaction (if any) 3. Discuss and determine how the accounting treatment would have been different if it had been assumed that KC had not lost control after the…

On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its semiconductor business for sale at year-end. The estimated fair value of the segment’s assets, less costs to sell, on December 31 was $13 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information: The book value of the assets of the segment at the time of the sale was $15 million. The loss from operations of the segment during 2024 was $4.1 million. Pretax income from other continuing operations for the year totaled $7.3 million. The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.

Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of 69,000 pounds. The subsidiary immediately borrowed 146,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 215,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2020, the subsidiary rented the building for three years to a group of local attorneys for 8,200 pounds per month. By year-end, rent payments totaling 82,000 pounds had been received, and 16,400 pounds was in accounts receivable. On October 1, 2020, 4,200 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 13,900 pounds back to Sullivan's Island Company on December 31, 2020. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound…

On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its semiconductor business for sale at year-end. The estimated fair value of the segment’s assets, less costs to sell, on December 31 was $18 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. The book value of the assets of the segment at the time of the sale was $17 million. The loss from operations of the segment during 2024 was $3.2 million. Pretax income from other continuing operations for the year totaled $6.0 million. The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.

On December 31, 2020, Petra Company invests $42,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery. Previously, Petra had no equity interest in Valery. Immediately after Petra’s investment, Valery presents the following balance sheet:               Cash $ 42,000 Long-term debt $ 98,000 Marketing software   162,000 Noncontrolling interest   126,000 Computer equipment   62,000 Petra equity interest   42,000 Total assets $ 266,000 Total liabilities and equity $ 266,000     Each of the amounts represents an assessed fair value at December 31, 2020, except for the marketing software.   The December 31 business fair value of Valery is assessed at $168,000.   If the carrying amount of the marketing software was undervalued by $47,000, what amounts for Valery would appear in Petra’s December 31, 2020, consolidated financial statements? If the carrying amount of the…

On September 1, FAITH Inc issued 120,000 shares of its P50 par value ordinary share in exchange for land. On the date of the transaction, the fair value of the ordinary shares, evidenced by its quoted market price in the stock exchange, was P120 per share. The fair value of the land on the same date was valued at P10,000,000. The journal entry to record this transaction includes a debit to Land for how much?

On January 5, 2021, Sisig Corp. purchased 50,000 shares of Toyomansi Company ordinary share for P3,600,000. Sisig Corp. classified the investment as EQUITY INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME. On June 2, 2021, Sisig received 50,000 rights from Toyomansi. Each right entitles the holder to acquire one share for P70. On October 4, 2021, the company exercised 60% of rights when the fair value of shares is P90/share. Sisig sold the remaining rights on December 23, 2021 for a P15 per right. The investment income from the EI@FVTOCI reported in the profit or loss for 2021 is:  a. P-0- b. P900,000 c. P300,000 d. P600,000

Octane Company and Bio Company have announced terms of an Octane Company and Bio Company have announced terms of a exchange agreement under which Octane will issue 10,000 shares or Its P5 par value ordinary shares to acquire all of Bio's assets. Octane's shares are trading at p28. and Bio's P10 par value shares are trading at P15. Historical cost and fair value statement of financial position data on January 1, 2008, are as follows: Octane Company Book Bio Company Fair Value Book Value Fair Value 10 P 25,000 40,000 30,000 50,000 Value Cash P 125,000 P 125,000 75,000 Land 120,000 Buildings and Equipment (net) Total Assets 180,000 P 380,000 220,000 120,000 150,000 P 175,000 Ordinary Shares Share Prenium P 100,000 P 150,000 bloa 60,000 SvIsunt 20,000 lends odd 6 be Retained earnings Total 000 170,000 P 380,000 55,000 P 175,000 .000,011 4) Başed on the information provided, what amount will be reported for Ordinary Share in the combined company's statement of financial position immediately…

Please do not provide answer in an image formate thank you. AAA and BBB formed a joint venture called CCC on January 1, 2022. Presented below are some relevant details on the establishment of this Joint Venture:   All transactions were considered to be of commercial substance. The fiscal year end for all three entities (AAA, BBB, CCC) is December 31. AAA contributed plant and equipment with a fair value of $600,000. AAA's share in the venture was 30%; BBB's share is 70%. BBB contributed assets with a book value of $1,100,000 All assets transferred had a remaining useful life of 17 years. At the end of 2022, AAA realized a gain of $8,465 for its share of contributed plant and equipment.   Required:   Calculate the book value of plant and equipment contributed by AAA.