this date, the c
Q: Spartan Inc. acquired 15% (90,000 shs) of the outstanding common stock of Buckeye Inc. on January 1,…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: On January 1, 20x2, Pfieter Company purchased 80 percent of the outstanding shares of Sedrosky…
A: NC interest in net income is determined based on the adjusted net income of the subsidiary entity.…
Q: At the beginning of the current year, Sage Company bought 40% of the Eve Company outstading ordinary…
A: Dividend is the share of comapny's profit or retained earnings that distributed to its shareholders.…
Q: Beef Company acquired 70% of Broccoli on January 1. On that date, the fair value of equipment with…
A: Holding companies are those that own and control the functioning of the entity. They are also known…
Q: uity shares in Frais on 1 January 20X1. During entory to Frais at a sales price of £50,000. None d a…
A: Consolidated Sales Revenue = Parents Co Revenue + Subsidiary Co Revenue - Intra group Sale…
Q: On 3 January 20X4, Windsor Company purchased 20% of the shares of Brampton for $640,000 cash.…
A: Answer:- Journal entry meaning:- Journal entry serves as a record of a company's all financial…
Q: 10% share dividend on December 31, 2021. The entity elected to use the equity method in accounting…
A: Equity method is an accounting technique used by a company to record the profits made by its…
Q: On July 1, 2023, Jerry Corporation acquired 25% of the shares of Von, Inc. for P1,000,000. At that…
A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…
Q: During the current year, Brewer Company acquired all of the outstanding common stock of Miller…
A: Journal Entry is the primary step to record the transaction in the books of accounts.The increase in…
Q: Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on January 1, 2009 for…
A: Formula: Total investment income = Total dividends paid x percentage of stake
Q: Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $279,000.…
A: Lets understand the basics.When using the equity method, the investor accounts for its investment as…
Q: What is the consolidated amount of machinery on December 31, 20x1? ans. 500,000 2. What is the…
A: Answer:
Q: What is the balance of the Investment in Schedule account on Planner's balance sheet at December 31,…
A: Under the equity method of recording the investment is that;First of all the percentage of…
Q: 2, Apple Company acquired 85% of outstanding shares of Samsung Corp. The consideration transferred…
A: Consolidation - The practice of combining the financial reports of the parent business with those of…
Q: On January 1 of the current year, Yellow Company purchased 40% of the outstanding ordinary shares of…
A: Reported income: The investor's portion of the joint venture's earnings and losses is included in…
Q: Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $279,000.…
A: When using the equity method, the investor accounts for its investment as an ownership interest in…
Q: Pit Coporation owns 75% of Stop Company's outstanding common stock. On 01/01/21, Pit sold sold a…
A: Consolidated means the combination of two firms. When two firms join together into one. For example…
Q: Entity P acquired 30% of the equity shares of Entity A several years ago at a cost of Rs. 275,000.…
A: Solution a) Unrealized Profit and Double entry Information…
Q: What should ABC report as investment income?
A: Investments: An investment is considered an asset. It is an amount invested by the investor in PPE…
Q: Jacob Corporation paid $536,200 for a 30% share of Gardner Enterprises on January 1 of the current…
A: The objective of the question is to prepare the journal entries required to record the sale of the…
Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…
A: On 01.01.20x0, P company purchased outstanding shares of S company = 80% Purchase consideration =…
Q: On January 1, 20x2, Pfieter Company purchased 80 percent of the outstanding shares of Sedrosky…
A: Consolidated financial statements are the financial statements of a group consisting of multiple…
Q: Peel Corporation purchased 60 percent of Split Products Company's shares on December 31, 20X7, for…
A: In the context of the given question, we are required to compute the balance of the investment…
Q: How much is the carrying amount of the investment in associate on December 31, 2018?
A: On January 1, 2018, Koehn Company bought 25% outstanding ordinary shares of Cosby Company for P1…
Q: On January 1, 2019, Orange Co. purchased 40% of the outstanding ordinary shares of New Company…
A: The value which is paid to acquire the other company’s net assets is referred to as the acquisition…
Q: What is the amount of consolidated net income attributable to controlling interest in 20x1?
A: Net income:The net income refers to the amount that is determined after taking care of all the…
Q: On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of…
A: Cost of goods sold=Beginning inventory+Net purchases-Ending inventory
Q: What is the group cost of sales for Pea Group for the year ended 31 December 20X9?
A: A group cost of sales is the cost of sales which is shown on the consolidated financial statement in…
Q: On January 1, Year 8, Shuswap Inc. and Kalamalka Inc. formed a new joint venture, Okanagan Inc.…
A: In a joint venture, the rewards and risks are shared. Each participant contributes resources, and…
Q: On January 1, Year 8, Shuswap Inc. and Kalamalka Inc. formed a new joint venture, Okanagan Inc.…
A: Date Account Titles Debit Credit 01 Jan Year 8 Shuswap Inc Equipment A/c $2,100,000 To…
Q: On January 1, Year 1, RAK, Inc. acquired a 25% interest in Tech Corp. for $375,000. At the date of…
A: A business becomes a shareholder or equity investor in another business when it buys shares or…
Q: What is the consolidated cost of sales for the year ended 30 June 20X5? a. $340,000 b. $350,000 c.…
A: The answer for the multiple choice question and relevant working are presented hereunder : Wye…
Q: Play Company acquired 70 percent of Screen Corporation's shares on December 31, 20X5, at underlying…
A: A consolidation worksheet is a spreadsheet that is used to create annual financial reports for a…
Q: On January 1, 2011, Pat Corporation paid $400,000 for purchase of Sad Corporation, when Sad's…
A: Fair value of net identifiable assets = Common stock + Retained earnings + fair value adjustments…
Q: GIGİ Group completed an acquisition of an interest in another business, Venice Company, during the…
A: As per the IFRS after acquiring the the stake in any entity, Investment in that entity will be shown…
Q: Of the amount paid for the investment, how much is attributable to goodwill? How much is the…
A: Acquisition costs are the sum of the costs incurred by the business in acquiring a new client or…
Q: Cake Company acquired the following plant assets during the current year. · Equipment -…
A: Property, plant, and equipment (PP&E) are tangible, long-term assets that are used to generate…
Q: P acquired 70% of S in 20X8. The statements of profit or loss of the two companies for the year…
A: Consolidated Financial Statements: Consolidation statements are the financial statements prepared by…
Q: Prime Corp acquired 90% of the outstanding ordinary share of Bee Company. On March 31, 2030, Prime…
A: Consolidation is the method where two or more companies combine together into a single business…
Q: Jacob Corporation paid $536,200 for a 30% share of Gardner Enterprises on January 1 of the current…
A: Now, let's summarize the calculations:- Initial Investment: $536,200- Adjusted Net Assets:…
Q: Determine the amount that pretax income would increase (decrease) in Year 2 as a result of the…
A: Given in the question: Date of Purchase January 1, Year 1 Number of Shares purchased…
Q: On 3 January 20X4, Windsor Company purchased 10% of the shares of Brampton for $608,000 cash.…
A: Answer:- Journal entry meaning:- Journal entry serves as a record of a company's all financial…
Q: Riverbed Inc acquired 108,000 common shares, which is 25% of the outstanding common shares, of…
A: Since corporation R has significant control over the business of company T despite having an…
Step by step
Solved in 2 steps with 2 images
- On January 1, Year 1, Big Corporation acquired 40% interest in Small Company for $300,000. At the date of acquisition, Small Company's equity (net assets) had a book value of $550,000 and a fair value of $600,000. The difference between the book value and the fair value relates to equipment being depreciated over the remaining useful life of 10 years. During Year 1, Small Company had net income of $900,000 and paid a $40,000 dividend. Required: 1. Prepare the journal entries required in year 1 to account for the investment in Small Company. 2. Compute the asset fair value difference and goodwillOn 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.AB Company bought 20% of CD Corporation's ordinary shares on January 1, 2021 for P20,000,000. Carrying amount of CD's net assets at purchase date totaled P60,000,000. Fair value and carrying amounts were the same for all items except for plant and inventory, for which fair values exceed their carrying amounts by P15,000,000 and P5,000,000 respectively. The plant has a 5-year life. All inventory was sold during 2021. Goodwill, if any, has an indefinite life. During 2021, CD reported profit of P40,000,000 and paid a P15,000,000 cash dividend. What amount should AB report as investment income for 2021? A.P6,000,000B.P7,200,000C.P7,400,000D.P6,400,000
- On 1/1/19, Major Company purchased 10% of Minor Company's common stock for $100,000. Minor's book value of equity at that date consisted of $200,000 common stock and $450,000 retained earnings. On 1/1/19, the difference between the fair value and book value of equity of Minor's stock is attributable to land for $100,000 and the remaining difference is attributable to equipment. The equipment has a 10 year remaining life at 1/1/19. During 2019, Minor reported income of $150,000 and paid dividends of $50,000. The fair value of Major’s investment in Minor stock on 12/31/19 is $125,000. Assuming that Major is investing in Minor because it has excess cash and thinks Minor stock price prospects are good, answer the following questions (use the $XXX,XXX) format. The investment will be sold within a month after year-end. Round to the nearest dollar. The total asset amount related to the Investment in Minor on Major’s 12/31/2019 balance sheet is ________ The Minor investment increased…On 3 January 20X4, Windsor Company purchased 20% of the shares of Brampton for $572,000 cash. Windsor will use the equity method. On this date, Brampton has $1,870,000 of assets, $1,496,000 of liabilities, and $374,000 of equity. Book values reflect fair values except for $840,000 of equipment, which has a five-year life and a fair value of $1,050,000. In 20X4, Brampton pays $28,200 of total dividends and reports earnings of $94,000. Required: 1. Calculate goodwill on acquisition, and the annual extra depreciation on investee equipment at fair value. Goodwill Additional depreciation 2. Prepare 20X4 journal entries for Windsor Company. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 $ 497,200 $ 42,000 2 Record the investment made in Brampton Corp. Transaction Note: Enter debits before credits. General Journal Debit Credit >As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 430,000 shares for $510,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $280,000 and distributed cash dividends of 15 cents per share. At year-end, the fair value of the shares is $538,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 Record the purchase of AMC Supplies shares for $510,000 as a long-term investment. Note: Enter debits before credits. Transactions General Journal Debit Credit
- On January 1, 2022, P Company purchased 64,000 shares of the 80,000 outstanding shares of S Company at a price of P1,200,000, with an excess of P30,000 over the book value of S Company's net assets. P13,000 of the excess is attributed to an undervalued equipment with a remaining useful life of eight years from the date of acquisition and the rest of the amount is attributed to goodwill. For the year 2022, P Company reported a net income of P750,000 and paid dividends of P180,000, while S Company reported a net income of P240,000 and paid dividends to P Company amounting to P39,000. The retained earnings of P Company at the end of 2022 per books is P1,025,000. P Company uses the cost method to account for its investment in S Company and elected to measure non-controlling interest at fair value on date of acquisition. How much is the consolidated net income attributable to controlling interests?On January 1, 20X9, Ute Company acquired 70 percent of Cougar Company's common shares at the underlying book value. Ute paid $70,000 for the 70% ownership. Ute uses the equity method in accounting for its ownership of Standard. During the year, Ute sold $200K inventory to Cougar. Ute’s original price on the inventory was $150K. At the end of the year Cougar had $30K in ending inventory. Prepare all the equity and eliminating entries needed as of December 31, 20X9, and complete the attached consolidated worksheet (Please fill out the cells with bolded question marks within the consolidated worksheet as well, if you can not find some of the values to replace the question marks, that is ok, but indicate which specific cell you are answering for the ones you do know, thank you).On January 1, 2024, Green Corporation purchased 20% of the outstanding voting common stock of Gold Company for $300,000. The book value of the acquired shares was $275,000. The excess of cost over book value is attributable to an intangible asset on Gold's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2024, Gold reported net income of $125,000 and paid cash dividends of $25,000. What is the carrying value of Green's investment in Gold at December 31, 2024?
- Ryan Ltd holds a 75% interest in Tully Ltd. On 30 June 2021 Tully Ltd transferred a depreciable non-current asset to Ryan Ltd at a profit of $15 000. Ryan Ltd determined that the remaining useful life of the asset at the date of transfer to Ryan Ltd was 5 years and the tax rate is 30%. The impact of the above transaction on the NCI share of profit at 30 June 2021 is: a. a decrease of $2 625 b. an increase of $3 750 c. an increase of $2 100 d. a decrease of $3 225 e. None of the above Please dont provide answer in image format thannk youOn January 1, 2021, PARKER Corp. acquired 40% of the outstanding ordinary shares ofOSBORN Corp. for ₱ 6,500,000. The carrying amount of net assets of OSBORN Corp.equaled ₱ 12,500,000. Any excess of cost over carrying amount is attributable to equipmentwith remaining useful life of 10 years. During the year, OSBORN reported net loss of ₱4,000,000 and paid dividends of ₱ 2,500,000.Required:A. Prepare journal entries for the current year.B. Compute for the carrying amount of the investment at year-end.Pit Coporation owns 75% of Stop Company's outstanding common stock. On 01/01/21, Pit sold sold a used piece of equipment to Stop in exchange for $236,000 cash. Pit's original cost of the equipment was $728,000 and accumulated depreciaiton of 01/01/21 was $447,000. The remaining useful life of the equipment is 10 years, and Stop will use that same usefull life. Both companies use the straight line method of depreciation. Pit's Journal Entries would include:
