Ch 1 class problems

Question #10: Argossey Corp owns a 70% equity interest in Gramcercy a subsidiary company. During the current year, Argossey sold off a small portion of their stock in Gramercy to an outside company. Before recording this transaction, Argossey adjusted the book value of its investment account. a) What is the purpose of Argossey adjusting its book value? b) How should the parent company record the transaction and what disclosure, if any, is required in the financial sttements and; c) How would Argossey account for the remainder of its investment subsequent to the sale of their partial interest in Gramercy

Show the solution in good accounting form Coronation company purchased an entity for 6,000,000 cash on January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition of follow: Question: What is the good arising from the acquisition? A. 4,450,000 B. 700,000 C. 2,450,000 D. 2,700,000

Answer with explanation

Please do not give solution in image format ? and fast answering please and explain proper steps by Step.

Pls answer and show solution with explanation

What amount of investment income will Pinta record during 20y4 under the equity method of accounting?   A. 12,800 B. 9,200 C. 15,600 D. 3,600

pls answer and provide solution and explanation

What will be the balance in the investment account on December 31, 20y4 under the equity method of accounting? A. 152,000 B. 150,000 C. 159,200 D. 155,600

Prepare and compute for the CONSOLIDATED EQUITY at the date of acquisition.

Hi can you please help me with my homework exercise. Please show complete solution and explanation for me to understand clearly.

(TCO C) Jewels Co. acquired Diamond Co. in an acquisition transaction. Yules decided to use the partial equity method to account for the investment. The current balance in the investment account is $430,000. Describe in words how this balance was derived.

Write the complete solutions legibly.

Make journal entries for the parent company. For the amount of consideration given, you have to calculate it if 100% interest was acquired, then it is at book value.

Questions:  a. How much is the Goodwill/Gain on Bargain Purchase? b. How much is the Consolidated Assets? c.

QUESTION 4 The directors of Pep Limited have appointed you as a merger and acquisition specialist. They are considering the acquisition of Guardiola Limited. You are to advise them whether or not to proceed with the project. The following information is available: - Pep Limited Guardiola Limited Market price per share R5.00 R4.00 Earnings per share R2.2 R1.8 No. of shares issued 3 000 000 2 000 000 - Cash payment of R7 million to Guardiola Limited - Synergy benefits of R3 million will accrue to the acquisition Required: Assume the acquisition is based on market values with a cash payment. 4.1 Calculate the combined value of the proposed acquisition. 4.2 Calculate the net present value of the proposal. 4.3 Calculate the acquisition premium. 4.4 Calculate the post-acquisition market price of the share. 4.5 Calculate the post-acquisition increase/decrease price of the share. 4.6 Identify and explain SIX (6) advantages associated with a Merger and Acquisition.

Help please get the ans accounting question

After the business combination on the basis of full-goodwill approach, what amount of investment in Silk will be reported? (Just use what is given from the information) a. P 0 b. P140,000 c. P150,500 d. P215,000

Asap

Show the solution in good accounting form

Consolidated Worksheet Preparation You will be creating and entering formulas to complete four worksheets. The first objective is to demonstrate the effect of different methods of accounting for the investments (equity, initial value, and partial equity) on the parent company’s trial balance and on the consolidated worksheet subsequent to acquisition. The second objective is to show the effect on consolidated balances and key financial ratios of recognizing a goodwill impairment loss. Project Scenario Pecos Company acquired 100 percent of Suaro’s outstanding stock for $1,450,000 cash on January 1, 2017, when Suaro had the following balance sheet:(THIS IS IN THE PICTURE)   Following is the consolidated information worksheet. December 31, 2018, trial balances                 Pecos Suaro   revenues  $      (1,052,000)  $      (427,000)   operating expenses  $          821,000  $       262,000   goodwill impairment loss ?     income of Suaro ?     net income ?  $…

You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the transaction value for this acquisition of Target Co.?  Acquisition of Target Co. by Acquirer Ltd. Target Share Price ($/sh.) $85.40 Acquisition Premium 15% Diluted Shares Outstanding (MM)          670 Target Total Debt $3,562 Target Cash and Cash Equivalents $5,147     % Debt Financing 40% % Equity Financing 60% Equity Financing Fees 4.0% Debt Financing Fees 1.5% Other Transaction Costs $800

Solve all questions Do not give answer in image

i need the answer quickly

On January 1, 2021, X Inc. purchased 25% of the voting shares of Y Inc. However, due to a system crash, the initial amount of consideration paid for this 25% has been lost. X uses the equity method. X has significant influence over Y. Calculate the Value of the initial purchase X Inc. paid for its 25% ownership (i.e. January 1, 2021), given the following information that you were able to find: Value of the Investment account in Y Inc. at the end of 2023 was $97,000 Y's net income and declared dividends for the following three years are as follows:   Net Income (loss) Dividends 2021 $50,000 $20,000 2022 $70,000 $80,000 2023 $30,000 $60,000

Problem 3) On January 1, 20X7, Falcon acquired the net assets of Intra for $3,400,000 with the issue of shares. The statement of financial position for Intra at the date of acquisition is shown below, together with estimates of the fair values of Intra's recorded assets and liabilities. Intra Corp Statement of Financial Position as at December 31, 20X6 Assets Cash Accounts receivable Inventories Property, plant, and equipment Development projects Other investments Total assets Liabilities Accounts payable and accrued liabilities Long-term debt Common shares Retained earnings Total liabilities and shareholders' equity Book value $ 000's 350 180 330 3,465 150 20 4,495 180 680 1,525 2,110 4,495 Fair value $ 000's 350 170 310 3,155 565 45 180 660 Required: a) What is the amount of goodwill to be recorded for this business combination? b) Prepare the journal entry that Falcon will use to record the business combination. Prepare the statement of financial position for Intra on January 1,…

Should Gee Co. proceed with the acquisition of Bea Co.? yes or no? show your solution. The management team of Gee Co. is deciding to acquire Bea Co. an entity that sells a product that compliments its own product. The management of Bea Co. demands a price of P18,000,000 for it to agree with the acquisition by Gee Co. Relevant data gathered for annual operations are as follows: Gee Co. Вea Co. Combined Average Net Income Depreciation Expense 3,500,000 2,500,000 6,500,000 250,000 150,000 350,000 WACC 12% 15% 12.50%

Produce a consolidated balance sheet for Johnston Group as at 30 September 20X6 consistent with international accounting standards.