188. Bird Corporation has several subsidiaries that are included in its consolidated financio statements and several other investments in corporations that are not consolidated. In its year-end trial balance, the following intercompany balances appear. Ostrich Corporation is the unconsolidated company; the rest are consolidated: Due from Pheasant Corporation Due from Turkey Corporation Cash advance to Skylark Company Cash advance to Starling Current receivable from Ostrich P 25,000 5,000 8,000 15,000 10,000 What amount should Bird report as intercompany receivables on its consolidated balance sheet? a. PO. С. P30,000. b. P10,000. d. P63,000.
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- 1. Parent Company purchased 90% of the outstanding shares of Subsidiary Company paying P975,000. At this time, Subsidiary’s Net assets had a fair value of P1,050,000 however, the 10% minority interest are currently being traded in the stock market at a total price of P110,000. The non-controlling interest is to be stated at fair value. What is the goodwill to be reported as a result of the business combination? 2. Parent Company acquires 75% of Subsidiary Company’s ordinary shares for P225,000 cash. At that date, the shares of Subsidiary are currently selling at P41/share. Subsidiary has a total of 8,000 shares outstanding. Also on that date, Subsidiary reports identifiable assets with a book value of P400,000 and a fair value of P510,000, and it has liabilities with a book value and fair value of P190,000.10. What is the goodwill or (income) from acquisition arising from the consolidation if the non-controlling interest is to be stated at fair value?On January 1, 20X1, Par Inc acquires 85.77% of Sub Corp for $211,625 in cash. Immediately before the acquisition, the book value of Sub's identifiable net assets was $143,426 with a fair value of $161,060, while the book value of Par's net assets was $282,155. What will be the amount of total shareholders' equity on the consolidated balance sheet immediately after the acquisition if the fair-value-enterprise (FVE) method is used? $309,334 b. $333,129 c. $301,402 d. $317,265 e. $325,197Parent owns 100% of subsidiary. Subsidiary has bonds payable to third parties of $5,500,000., plus an unamortized premium with a credit balance of $500,000. In 2022, parent purchases all outstanding bonds from third parties for $6,400,000. What result is reported in the 2022 consolidated financial statements. a. Consolidated loss on “retirement” of bonds $400,000 b. No gain or loss is reported in the consolidated totals on this intercompany transaction. c. Consolidated loss on “retirement” of bonds of $1,400,000 d. Consolidated gain on “retirement” of bonds of $1,100,000 e. Consolidated gain on “retirement” of bonds of $400,000
- On 1 January 20X1 Tall plc acquired 80% of ordinary shares of Small plc for a price of £30,000, when Small plc’s net assets had fair value of £12,000. The non-controlling interest (NCI) in Small plc was consolidated at its fair value of £6,000. At 31 December 20X1, Tall plc’s directors decided to take a goodwill impairment of £1,000. Tall plc’s IFRS consolidated statement of financial position at 31 December 20X1 reports goodwill (related to the investment in Small plc) for an amount of: a. £14,000 b. £13,000 c. £15,000 d. £7,000Simple Company, a 70%-owned subsidiary of Punter Corporation, reported net income of P240,000 and paid dividends totalling P90,000 during Year 3. Year 3 amortization differences between current fair values and carrying amounts of Simple’s identifiable net assets at the date of business combination was P45,000. The non-controlling interest in net income of Simple for Year 3 was P58,500 P13,500 P27,000 P72,000On June 30, 20X1, Naeder Corporation purchased for cash at $10 per share all 100,000 shares of the outstanding common stock of the Tedd Company. The total fair value of all identifiable net assets of Tedd was $1,400,000. The only noncurrent asset is property with a fair value of $350,000. The consolidated balance sheet of Naeder and its wholly owned subsidiary on June 30, 20X1, should report a. a retained earnings balance that is inclusive of a gain of $400,000. b. goodwill of $400,000. c. a retained earnings balance that is inclusive of a gain of $350,000. d. a gain of $400,000
- XYZ Company merged into UUU Company on July 1, 2021. In exchange for the net assets at fair market value of XYZ Company amounting to P696,450, UUU, issued 68,000 ordinary shares at P9 par value with a market price of P12 per share. Out-of-pockets of the combination were as follows: Legal fees for the contract of business combination P35,600; Audit fee for SEC registration of stock issue P90,000; Printing costs of stock certificates P14,500; Broker’s fee P23,600; Accountant’s fee for pre-acquisition P80,000; Other indirect cost of acquisition P75,000; General and allocated expenses P43,000 and Listing fees in issuing new shares P36,000. XYZ will pay an additional cash consideration of P455,000 in the event that UUU’s net income will be equal or greater than P950,000 for the period ended December 31, 2021. At acquisition date, there is a high probability of reaching the target net income and the fair value of the additional consideration was determined to be P195,000. Actual net income…XYZ Company merged into UUU Company on July 1, 2021. In exchange for the net assets at fair market value of XYZ Company amounting to P696,450, UUU, issued 68,000 ordinary shares at P9 par value with a market price of P12 per share. Out-of-pockets of the combination were as follows: Legal fees for the contract of business combination P35,600; Audit fee for SEC registration of stock issue P90,000; Printing costs of stock certificates P14,500; Broker’s fee P23,600; Accountant’s fee for pre-acquisition P80,000; Other indirect cost of acquisition P75,000; General and allocated expenses P43,000 and Listing fees in issuing new shares P36,000. XYZ will pay an additional cash consideration of P455,000 in the event that UUU’s net income will be equal or greater than P950,000 for the period ended December 31, 2021. At acquisition date, there is a high probability of reaching the target net income and the fair value of the additional consideration was determined to be P195,000. Actual net income…Q7- On January 1, 20X8, Zeta Company acquired 85 percent of Theta Company's common stock for $100,000 cash. The fair value of the noncontrolling interest was determined to be 15 percent of the book value of Theta at that date. What portion of the retained earnings reported in the consolidated balance sheet prepared immediately after the business combination assigned to the noncontrolling interest? a- None b- 15 percent c- 100 percent d- Cannot be determined With calculations please