1. What is the excess of cost over the carrying amount of the net assets acquired? 2. What amount should be reported as investment income for the current year? 3. What is the carrying amount of the investment in associate at year-end?

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: PROBLEM 1 On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: PROBLEM 4-11 P Company acquired 4,000 shares of the outstanding stock of S Company for P1,200,000 on…

A: In the case of consolidation first of all we will calculate the % of holding. in the same question %…

Q: Problem 2: On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company…

A: The consolidated financial statement determined separately the profit attributable to the parent…

Q: en the net assets acquired amounted to P7,000,000 At acquisition date, the carrying amounts of the…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: n January 1, 2020 ABC Corp. acquired 60,000 shares of the 200,000 shares outstanding of XXX Inc. at…

A: Solution given Number of shares acquired 60000 Acquisition price per share 25…

Q: Sage Inc. bought 40% of Adams Corporation’s outstanding common stock on January 2, 20X1, for…

A: Acquisition by a company is the taking over of another company’s share so that investment can be…

Q: Problem 4: Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2016, when…

A: SOLUTION FORMULA- GROSS PROFIT = SALES - COST OF GOOD SOLD.   WORKING NOTE- SALES  2500000 LESS…

Q: Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on July 1, 2019 for…

A: Amulung Net profit P4,00,00,000 Less: Inventory fair values exceed their carrying amounts on date…

Q: Prime Company acquired 75% of the common stock of Second Company January 1, year one, for $450,000…

A: Purchase method should be used to account for acquisition of Second Company.

Q: Use this problem for the next two questions: On January 1, year 1, ABC Corporation purchased 80% of…

A: Non-controlling interest, which also goes by the term ‘minority interest’, is a position of…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: Consolidated financial statements are the financial statements of a group consisting of multiple…

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: PROBLEM 1 On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company…

A: PROBLEM 1 On 01.01.20x0, P company purchased outstanding shares of S company = 80% Purchase…

Q: Problem 4: Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2016, when…

A: SOLUTIONS NET INCOME REFER TO THE AMOUNT OF AN INDIVIDUAL OR BUSINESS MAKES AFTER DEDUCTION COSTS ,…

Q: PROBLEM 4-5 On January 1, 2020, Pet Company purchased 80% of the shares of Sam Company at book…

A: SOLUTION DIVIDEND IS A PART OF COMPANY'S PROFIT THAT PAID TO THE PEOPLES WHO OWNS THE SHARE CALLED…

Q: Prime Company acquired 75% of the common stock of Second Company January 1, year one, for $450,000…

A: Equity method is chosen for Prime to use to account for its acquisition of Second Company.

Q: PROBLEM 35 At the beginning of 2018, Esterlina Corporation purchased 40% of the ordinary shares…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: Problem 1: On January 1, 2020, Pond Co. acquired 40% of the outstanding voting common shares of Ramp…

A: When a company invest in another company, then it has to record some entries in its books of…

Q: Prob 1: On January 1, 2018, WONG NOODLES Corporation acquired the net assets of Natasha, Inc., by…

A: The amount of assets remaining after all liabilities have been paid is referred to as stockholders'…

Q: PROBLEM 32 Guillen Company acquired 30% of ABC Corporations share for P8,000,000 on July 1, 2020.…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-part for you. If you…

Q: Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on July 1, 2019 for…

A: Investment income refers to the income which is received in form of dividends and interest payments…

Q: Problem 5 On January 1, 2021, Pe Inc. purchased Ra Corp. for P1,500,000 for 100% ownership of its…

A: The value which is received when an asset is sold at a price above the net book value of the asset…

Q: Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on July 1, 2019 for…

A: Particulars Amount Carrying amount of net assets of Amulung Corp P60,000,000 Add: Additional…

Q: Use the following data for Problems 10–15:On January 1, Jarel acquired 80 percent of the outstanding…

A: Correct answer is option d ($400,000).

Q: Problem 3 On January 1, 2021, CPA Co. acquired 15,000 ordinary shares out of 100,000 outstanding…

A: The net income of the company means the income of the company that comes after deducting all the…

Q: Use this problem for the next two questions: On January 1, year 1, ABC Corporation purchased 80% of…

A: As per IFRS 3 business combination, goodwill shall be recognized.

Q: immy Co. acquired 80% interest in Princess Bubblegum Company on January 2, 2018 for $2,520,000. On…

A: Step 1 Non controlling interest is that part of the subsidiary that is not under the holding company…

Q: Problem 9 On January 1, 2012, Cheetah Company purchased 30% interest in Pod Company for P2,500,000.…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: PROBLEM 1 On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Compar…

A: Solution:  On 01.01.20x0, P company purchased outstanding shares of S company = 80% Purchase…

Q: 6. In January 2002, Henry Corporation acquired 20 percent of the outstanding ordinary shares of…

A: The question is related to Accounting for Associates. Required  What is the proper Carrying Amount…

Q: Problems 7 and 8 relate to the following: On January 1, 2016, Pride Corporation purchased 90 percent…

A: Given information is: On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding…

Q: On January 1, Year 1, Big Corporation acquired 40% interest in Small Company for $300,000. At the…

A: The investment in the associate is presented in the balance sheet using the equity method. Under…

Q: 4. On January 1, 20x1, Arco Co. acquired 20% interest in Mobi Co. for P1,600,000. On this date, the…

A: An associate is the one whose 20% to 50% shares are held by another company. Such a company has…

Q: Situation 1 Waterway Cosmetics acquired 10% of the 189,000 shares of common stock of Martinez…

A: A journal entry records a business transaction in the accounting system for an organization. Journal…

Q: Parekoy Company acquires 150,000 of the 1,000,000 Marekoy Company’s common stock for  P500,000 cash…

A: Non Controlling Interest: It is the ownership of the equity less than 50%, It is arises at the time…

Q: Problems 7 and 8 relate to the following: On January 1, 2016, Pride Corporation purchased 90 percent…

A: Net income is the difference between total expenses and total revenue earned during a financial…

Q: 5. Sage, Inc. bought 40% of Adams Corp.'s outstanding common stock on January 2, 20x3 for P400.000.…

A: The income and expenses are to be taken down into a statement called income statement which helps…

Q: PROBLEM 36 Eddie Company acquired 30% of ABC Corporations share for P8,000.000 on July 1, 2020. ABC…

A: 1. On 01.07.2020, Eddie company acquired shares of ABC company = 30% Purchase consideration =…

Q: Problem 4: Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2016, when…

A: SOLUTION FORMULA COST OF SALES = BEGINNING INVENTORY + PURCHASE -ENDING INVENTORY.

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.