What amount will be recorded as goodwill on January 1, 2020?

Q: At January 1,2020, the Retained Earnings account has a balance of P 3,500,000. During the year, a…

A: Retained earnings, also called as reserves and surplus, refer to the accumulated amount left out of…

Q: On July 1, 2020, an interest date, P1,000,000 of Siomai Company bonds were converted into 20,000 of…

A: Amount to be recognised =Market value of ordinary shares -Carrying amount of bonds

Q: amount of compensation

A: Stock appreciation rights (SARs) are a device used by companies for compensating their employee.…

Q: On July 1, 2020, an interest date, P1,000,000 of Siomai Company bonds were converted into 20,000 of…

A: Conversion of bonds refers to the process of exchanging a convertible type of asset or bond into…

Q: *see attached What is the compensation expense for 2021? a. 120,000 b. 240,000 c. 200,000 d.…

A: Share option means where the employees is given share free of cost or at very nominal value if the…

Q: On October 1, 2020, Kikiam Company purchased as debt investments at fair value through profit or…

A: Attributable Cost It is the cost which is  associated  directly with an investment or  cost center.

Q: On January 1, 2021, the fair values of CHAESOO Inc. net assets were as follows:

A: As per IFRS 13 any shares issued on account of acquisition of business and assests acquired should…

Q: What should the company record as depreciation expense for the first year under the straight line…

A: Depreciation is a measure that recognizes a portion of the cost of an asset as an expense, during…

Q: On Jan. 1, 2020, Terra Company established a share appreciation rights plan for the executives. The…

A: calculation of compensation income are as follows

Q: On January 1, 2020, DEF Company purchased equity securities for P18,000,000. The entity paid the…

A: The fair value change on the financial instrument that is measured at FVOCI is an unrealized…

Q: On January 1, 2020, BTS Corporation granted share options to its employees with a fair value of…

A: Compensation expenses should be recognized  over vesting period

Q: On June 1, 2019, 4,000 shares of $10 par value common stock are issued in exchange for new…

A: Introduction Additional paid in capital: Additional paid in capital is the excess value of proceeds…

Q: On Jan. 1, 2020, Luna Company granted 60,000 share options to employees. The share options will vest…

A: The Compensation expense is calculated by multiplying the number of stock options granted by the…

Q: Good Company purchased  a franchise on July 1, 2021 for the following considerations:  The company…

A: Cost of franchise would the the fair value of share issued and present value of payment for note…

Q: purchased 2,000 shares of Potter Wholesale for $35 per share. Based on the percentage of outstanding…

A: The realised gain or loss is the difference between the Fair Value of Stock and Sale Value of Stock…

Q: aid-in capital et) (4-year renaining Life) rt-term investments 50, 000 214, 000 82, 250 250, 000…

A: Fair value allocation and annual excess amortizations:       Abernethy fair value…

Q: Mungo Ltd has entered into two contacts involving financial instruments as follows. On 1 July 2020,…

A: The bond issuer, or the borrower who raised the funds, must record the bonds as a financial…

Q: On January 1, 2020, the Deluxe Corporation purchased equity securities to be held for trading…

A: Given, Acquisition cost of securities = P 2,000,000 Commission and taxes = P 50,000 Fair value of…

Q: PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if…

A: 1.

Q: H Company acquires 100% of the voting stock of R Company on January 1, 2021 for P400,000 cash.  A…

A: Under the acquisition method, contingent consideration obligations are recognized as part of the…

Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…

A: Available-for-sale securities: These are the investment in securities that are intended to be sold…

Q: *see attached problem REQUIRED: What is the compensation expense for 2022?

A: Share option means where the employees is given share free of cost or at very nominal value if the…

Q: During 2020, Tanso purchased 20,000 shares of Ginto common stock for P315,000 as an equity…

A: Equity investment is the form of investment in the shares of the company to get returns in the form…

Q: H Company acquires 100% of the voting stock of R Company on January 1, 2021 for P400,000 cash. A…

A: Given that, Cash paid by H company = P400,000  Contingent consideration = P16,500  Interest rate =…

Q: At the beginning of 2019, Ace Company had the following portfolio of investments in…

A: Unrealized loss occurs when a stock decreases after an investor buys it, but yet has to sell it. If…

Q: On January 1, 2020, the Stew Corporation purchased equity securities to be held for trading purposes…

A: It is pertinent to note that trading securities are always measured at fair value through profit and…

Q: In 2021, Cromwell Corporation purchased bonds of Oliver Company at par for $300,000 and classified…

A: Investments are those assets which generate income mostly in form of interest. Investments can be…

Q: On January 1, 2019, Pacita Corp. purchased equity securities to be held for trading purposes for…

A: Amount of unrealized gain or loss that should be reported in profit or loss section of statement of…

Q: F Corp. has P3,000,000 worth of investment in 10%, 7-year bonds, which the company acquired in 2018.…

A: 7-year bonds, which are acquired in 2018 sold on 31 December 2020. the bonds are held for less than…

Q: On January 1, 2020, ABC Corporation granted share options to its employees with a fair value of…

A: Compensation expense recognized upto 2021 = Total fair value of options x (1 - % of employees will…

Q: ALOY Company acquires 100% of the voting stock of BENNET Company on January 1, 2021 for P400,000…

A: The acquirer shall recognize contingent consideration as a part of consideration transferred to…

Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing e…

A: Dianne Corporation pays Cyril Corporation in shares and cash as purchase consideration for Cyril…

Q: Cariston, Inc. has equity securities designated as at fair value through profit or loss that were…

A: When an asset is designated as at fair value through profit or loss, the fair value of asset is…

Q: On January 1, 2020, ABC Company purchased an equipment with a cash price of P2,000,000. The supplier…

A: Issue of shares is one of the important source of finance that is being used by the business. In…

Q: Cloud 9 Inc. has equity securities designated as at fair value through profit or loss that were…

A: Investment in securities means where the company purchased the share or other securities of other…

Q: On January 1, 2020, Green Corporation granted share options to its employees with a fair value of…

A: Employee Stock Option Plan (ESOP): ESOP is the right given to the employee to buy a certain number…

Q: H Company acquires 100% of the voting stock of R Company on January 1, 2021 for P400,000 cash. A…

A: Purchase Consideration: The term "Purchase Consideration" refers to the monetary payment made by the…

Q: At January 1,2019, the Retained Earnings account has a balance of P 3,500,000. During the year, a…

A: Out of the profit earned by the business entity, some of the profit is distributed to the…