How much is the consolidated total assets on January 1, 20x1? How much is the consolidated total equity on January 1, 20x1? On January 1, 20x1, Entity A acquires Entity B in a business combination. The financial statements ofthe combining constituents are shown below:Entity A12,000Entity B6,000Cash in bankAccounts receivable36,00014,400InventoryInvestment in subsidiaryBuilding, netTotal assets48,00027,60090,000216,00048,000402,00096,000Accounts payableShare capitalShare premiumRetained earningsTotal liabilities and equity60,0007,200204,00060,00078,00060,00028,800402,00096,000Additional information:Entity B's assets and liabilities are stated at their acquisition-date fair values, except for thefollowing:Inventory, P37,200Building, net, P57,600The goodwill determined under PFRS 3 is P3,600.The NCI in the net assets of the subsidiary, also determined under PFRS 3, is P21,600.

Consolidated assets is referred to as all the assets, which owns directly through the corporation or…

Answered: On January 1, 20x1, Entity A acquires…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 48P

See similar textbooks

Similar questions

AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed Statement of Financial Position before the combination show: AAA Inc. ВBB Coгp. Cash 88,000 88,000 Accounts Receivable, net Inventory Property Plant and Equipment Patent 500,000 420,000 1,700,000 1,119,600 4,654,000 1,040,000 260,000 Accounts Payable Mortgage Payable Capital Stock, par P100 1,000,000 1,704,000 171,600 1,300,000 390,000 1,066,000 2,600,000 Share Premium 390,000 1,248,000 Retained Earnings As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant and equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA purchases BBB's net asset for P4,000,000. Compute for the consolidated asset after acquisition. Your answer
FE holds investments in a number of subsidiaries and associate entities and made one change to its holdings in 2021, which was the acquisition of LT. The statement of financial position of the FE group as at 31 December 2021 and its comparative are shown below:Statement of financial position as at 31 December 2021 2020ASSETS R000 R000Non-current assetsProperty, plant and equipment 24 000 20 200Goodwill 6 300 5 800Investment in associates 5 200 4 70035 500 30 700Current assets 42 500 31 700Total assets 78 000 62 400EQUITY AND LIABILITIESEquity attributable to owners of the parentShare capital (R1 ordinary shares) 18 000 15 000Share premium 1 000 -Revaluation reserve 2 000 -Retained earnings 12 500 7 60033 500 22 600Non-controlling interests 9 200 8 800Total equity 42 700 31 4006Non-current liabilitiesLong-term borrowings 16 000 18 000Current liabilities 19 300 13 000Total liabilities 35 300 31 000Total equity and liabilities 78 000 62 400Additional information:1. FE acquired 70% of the…
AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed Statement of Financial Position before the combination show: BBB Corp. 88,000 420,000 1,119,600 1,040,000 260,000 171,600 AAA Inc. Cash Accounts Receivable, net 88,000 500,000 1,700,000 4,654,000 Inventory Property Plant and Equipment Patent Accounts Payable Mortgage Payable Capital Stock, par P100 Share Premium Retained Earnings 1,000,000 1,704,000 2,600,000 390,000 1,248,000 1,300,000 390,000 1,066,000 As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant and equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA purchases BBB's net asset for P4,000,000. Compute for the consolidated asset after acquisition.
AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acq uisition of interest. Their condensed Statement of Financial Position before the combination show: ВBB Cогр. 88,000 420,000 1,119,600 1,040,000 260,000 171,600 AAA Inc. Cash Accounts Receivable, net Inventory Property Plant and Equipment Patent Accounts Payable Mortgage Payable Capital Stock, par P100 Share Premium Retained Earnings 88,000 500,000 1,700,000 4,654,000 1,000,000 1,704,000 2,600,000 390,000 1,248,000 1,300,000 390,000 1,066,000 As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant and equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA. purchases BBB's net asset for P4,000,000. Compute for the consolidated asset after acquisition.
Subject: Corporate Accounting Q) The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each valued at $1.50. The summary statement of the financial position of the subsidiary company immediately following the acquisition is: Fair value of assets acquired $2,640,000Fair value of liabilities acquired $720,000Total shareholders’ equity of the subsidiary company $800,000Retained earnings of the subsidiary company $1,120,000 Required:(a) Pass the necessary journal entry to record the acquisition (2 marks)(b) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition (c) Pass the necessary consolidation entry to eliminate the subsidiary by the parent company (d) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase consideration paid was $1,000,000 cash and 400,000 shares each valued at $1.50
On January 1, 2021, Parent Company acquires 80% of the equity interests of Subsidiary Company, a private entity, in exchange for cash of P1,500,000. The management of Parent initially measures the separately recognizable identifiable assets acquired and the liabilities assumed as of the acquisition date in accordance with the requirements of IFRS 3. The identifiable assets are measured at P2,500,000 and the liabilities assumed are measured at P500.000. Parent Company engages an independent consultant, who determines that the fair value of the 20% non-controlling interest in Subsidiary is P420,000. What is the amount of goodwill (gain or bargain purchase) from the business combination?
Illustration 1. Share-for-share exchanges On January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of the assets, liabilities and equity of Frank and Richard before the business combination are as follows: On the negotiation for the business combination, the acquirer incurred the following transaction costs: P45,000.00 for legal fees; P 5,000.00 for due diligence cost and P 80,000.00 for the general admin cost and cost of maintaining an internal acquisition department. Case 1: before the transaction, Frank, Co. have 7,000 outstanding shares. Frank Co. Issued additional 10,000 shares as consideration for a 100% interest in Richard. Frank’s shares currently sells P150 per share in the market, while Richard’s shares are quoted at P200 per share. With the stated facts, answer the following: 1.How much is the Share Premium of the combined company after the business combination?a. P 730,000.00b. P 1,230,000.00c. P 800,000.00d. P 1,700,000.002.How much is…
Box Company (the transferor company) and Cox Company (the transferee company) amalgamate in an exchange of stock to form Cox & Box Company. The pre-amalgamation balance sheets of Cox Company and Box Company are as follows: 1. Вох Сompany Сох Соmpany * in million) (® in million) Fixed assets 25 10.0 Current assets 20 7.5 Total assets Share capital (? 10 face value) Reserves and surplus Debt 45 17.5 20 5 10 10 15 2.5 45 17.5 For each share held in Box Company, two shares of Cox Company were given in exchange (face value: 710, share premium: 720) as the market price of Cox's equity shares is 730. The fair market value of the fixed assets and current assets of Box Company was assessed at ?20 million and 710 million, respectively. Prepare the post-amalgamation balance sheet of Cox & Box Company under the 'pooling' and 'purchase' methods. 000
on the 28/02/x2 a parent acquires 100 of the share capital of a subsidiary entity.at the groups year end date of 30/06/x2. the subsidairy recognized profits totaling R 1 485 000 for the financial year. calculate the subsidiary post - acquisition profits to the included in the groups retained earnings upon consolidation - 459 000 - 540 000 - 450 000 - 495 000
The December 31, 20x8, balance sheets for Pint Corporation and its 70 percent-owned subsidiary Saloon Company contained the following summarized amounts: Assets Cash and Receivables Inventory Buildings and Equipment (net) Investment in Saloon Company Total Assets Liabilities and Equity Accounts Payable Common Stock Retained Earnings Total Liabilities and Equity PINT CORPORATION AND SALOON COMPANY Balance Sheets December 31, 20x8 view transaction list Consolidation Worksheet Entries A B < Pint acquired the shares of Saloon Company on January 1, 20X7. On December 31, 20X8, assume Pint sold Inventory to Saloon during 20X8 for $105,000 and Saloon sold Inventory to Pint for $309,000. Pint's balance sheet contains Inventory Items purchased from Saloon for $100,000. The Items cost Saloon $60,000 to produce. In addition, Saloon's Inventory contains goods it purchased from Pint for $27,000 that Pint had produced for $16,200. Assume Saloon reported net Income of $72,000 and dividends of $14,400.…
Assuming the existence of two companies, A and B, which of the following is not a business combination? Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A and Company B liquidate. Company A acquires all assets and liabilities of Company B, and Company B liquidates. Company A acquires all assets and liabilities of Company B. Company B continues as a company, holding shares of Company A. Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company B continues to operate as a company.
Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sollon issued Pab 35,000 shares of $7 par value common stock. The following information is provided on the assets and accounts payable transferred: Cost Book Value Fair Value Cash $ 32,000 $ 32,000 $ 32,000 Inventory 83,000 83,000 83,000 Land 69,000 69,000 99,000 Buildings 188,000 147,000 249,000 Equipment 95,000 74,000 123,000 Accounts Payable 58,000 58,000 58,000 Required: Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab.

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SEE MORE TEXTBOOKS