On January 1, 2019, Blackpink Company acquired 40% of the ordinary shares of an associate. On such date, assets and liabilities of the investee were recorded at fair value and the acquisition showed that goodwill of P1,000,000 was acquired. The investee reported net income of P8,000,000 for 2019. What amount of Share in Profit of Associate should be reported by Blackpink Company for 2019?

Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2019. For 2019, Kailey reported revenues of $810,000 and expenses of $630,000, not including its investment in Denber, and all reflected evenly throughout the year. The annual amount of amortization related to this acquisition was $15,000. What is the amount of the noncontrolling interest's share of Kailey's income for 2019? a. $72,000. b. $22,000. c. $66,000. d. $24,000. e. $48,000.

On January 1, 2021, Sledge had common stock of $340,000 and retained earnings of $480,000. During that year, Sledge reported sales of $350,000, cost of goods sold of $180,000, and operating expenses of $62,000. On January 1, 2019, Percy, Inc., acquired 70 percent of Sledge's outstanding voting stock. At that date, $82,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $42,000 to an undervalued building (with a 10-year remaining life). In 2020, Sledge sold inventory costing $24,050 to Percy for $37,000. Of this merchandise, Percy continued to hold $6,000 at year- end. During 2021, Sledge transferred inventory costing $23,100 to Percy for $42,000. Percy still held half of these items at year-end. On January 1, 2020, Percy sold equipment to Sledge for $23,000. This asset originally cost $38,000 but had a January 1, 2020, book value of $13,400. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy…

On July 1, 2019, Killearn Company acquired 105,000 of the outstanding shares of Shaun Company for $19 per share. This acquisition gave Killearn a 40 percent ownership of Shaun and allowed Killearn to significantly influence the investee’s decisions.   As of July 1, 2019, the investee had assets with a book value of $5 million and liabilities of $1,101,500. At the time, Shaun held equipment appraised at $280,000 more than book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $650,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun.   Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $640,000 in 2019, $670,600 in…

On January 1, 2021, Sledge had common stock of $240,000 and retained earnings of $380,000. During that year, Sledge reported sales of $250,000, cost of goods sold of $130,000, and operating expenses of $52,000. On January 1, 2019, Percy, Inc., acquired 90 percent of Sledge's outstanding voting stock. At that date, $72,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $32,000 to an undervalued building (with a 10-year remaining life). In 2020, Sledge sold inventory costing $17,550 to Percy for $27,000. Of this merchandise, Percy continued to hold $6,000 at year-end. During 2021, Sledge transferred inventory costing $19,200 to Percy for $32,000. Percy still held half of these items at year-end. On January 1, 2020, Percy sold equipment to Sledge for $18,000. This asset originally cost $28,000 but had a January 1, 2020, book value of $11,400. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy has…

P Co paid $140,000 for 70% interest in S CO.on 1/1/2019, when S had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2019, S had income of $20,000, declared dividends of $7,500, On 31/12/2019, the P CO financial statements will show income from subsidiary for 2019 Amount? Select one: a. 12,500 b. 5,250 c. 20, 000 d . 14, 000

Company P acquired 90 percent of the common stock of Company S on 1/1/2020. During 2020, Company S reported a net income of $50,000 and dividends of $12,000. Company P uses the simple equity method to account for the investment in S. Which of the following entries is prepared by Company P when consolidating the financial statements for 2020? Debit Subsidiary Income $45,000, Credit Investment in S $45,000 Debit Investment in S $45,000, Credit Subsidiary Income $45,000 Debit Dividends Receivable $10,800, Credit Subsidiary Income $10,800 Debit Subsidiary Income $10,800, Credit Dividends Declared $10,800

On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The investment was accounted for using the cost method. On January 1, 2020, the entity acquired a further 15% interest in the investee for P6,750,000. On such date, the carrying amount of the net assets of the investee was P36,000,000 and the fair value of the 10% interest was P4,500,000. The fair value of the net assets of the investee is equal to carrying amount except for an equipment whose fair value exceeds carrying amount by P4,000,000. The equipment has a remaining life of 5 years. The investee reported net income of P8,000,000 for 2020 and paid cash dividend of P5,000,000 on December 31, 2020. What amount of gain on re-measurement to equity should be recognized in 2020?

On 1 July 2019, Christina Ltd acquired all the issued shares of Adeline Ltd, paying $120 000 cash and transferring 100 000 of its own shares to Adeline Ltd’s former shareholders. At that date, the financial statements of Adeline Ltd showed the following information.                             Share Capital                    $100000                             General Reserve                   50000                              Retained Earnings                150000   All the assets and liabilities of Adeline Ltd were recorded at amounts equal to their fair values at the acquisition date. The fair value of Christina Ltd’s shares at acquisition date was $2 per share. Christina Ltd incurred $30 000 in acquisition‐related costs that included $5000 as share issue costs.   Required   Prepare the acquisition analysis at 1 July 2019. Prepare the journal entries for Christina Ltd to recognise the investment in Adeline Ltd at 1 July 2019. Prepare the consolidation worksheet entries for…

At the beginning of the current year, an entity acquired 40% of the ordinary shares of an associate. On such date, assets and liabilities of the investee were recorded at fair value and the acquisition showed that goodwill of P1,000,000 was acquired. The investee reported net income of P8,000,000 for the current year. In December, the investee sold inventory costing P3,000,000 to the investor for P5,000,000. The inventory remained unsold by the investor at year-end. At the beginning of the current year, the investee sold equipment to the investor with a carrying amount of P2,500,000 for P4,000,000. The remaining life of the equipment is 5 years.   What amount of investment income should be reported for the current year? a. 1,920,000 b. 1,800,000 c. 3,200,000                d. 2,400,000 Problem 4 An entity owned 100% of another entity’s preference shares and 20% of ordinary shares. The investee’s share capital outstanding at year-end included P5,000,000 of 10% cumulative preference…