UTAH INC. issued 120,000 shares of P10 par common stock with a fair value of P2,550,000 for all the outstanding stock of JAZZ CORP. In addition UTAH incurred the following costs: Professional fees to arrange the business combination P27,000 Cost of SEC registration 12,000 Cost of printing and issuing stock certificates 3,000 Immediately before the business combination in which JAZZ was dissolved, JAZZ's assets and equities were as follows (in thousands): Book value Fair value Current assets P1,000 P1,100 Plant assets 1,500 2,200 Liabilities 300 300 Common stock 2,000 Retained earnings 200 What is the amount of goodwill (gain on acquisition)? O P 450,000 O P(450,000) O P 500,000 O P(550,000)

Johannes Inc. acquired 80 percent of Corner Brook Ltd. common shares on January 1, Year 4, for $744,000. At that date, the fair value of the non-controlling Interest was $186,000. Corner Brook's balance sheet contained the following amounts at the time of the combination: Cash Accounts Receivable Inventory Construction Work in Progress Other Assets (net) Total Assets 66,000 140,000 40,000 Accounts Payable $ 106,000 Bonds Payable 610,000 950,000 Common Shares ($10 par value) Retained Earnings 400,000 530,000 450,000 $1,646,000 $ 1,646,000 Total Liabilities & Equities During each of the next three years, Corner Brook reported net income of $120,000 and paid dividends of $60,000. On January 1, Year 6, Johannes sold 8,800 of the Corner Brook shares for $260,000 in cash. Johannes used the equity method in accounting for its ownership of Corner Brook. Required: (a) Compute the balance in the Investment account reported by Johannes on January 1, Year 6, before its sale of shares. (Omit $ sign…

Munabhai

On the 1/01/x3, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5 695 000. At acquisition, PA had retained earnings of R1 400 000. When preparing the J Group's consolidated financial statements for the year end date of 31/12/x3, accountants at the group entity are working with the following information: In the x3 financial year, Entity PA made a profit after tax of R 1 230 000; In the x3 financial year, PA paid a dividend totaling R45 000 to its shareholders; At the end of the x3 financial year, the group's investment in PA is found to have impaired by R94 000. Based on this information, calculate the group's investment in associate figure, in its consolidated financial statements dated 31/12/x3.