4. An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000.   On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000.   If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020?  Group of answer choices Nil P40,000 P160,000 P420,000

Q: X Brutus Company owned the following investments at year-end before fair value adjustments and…

A: Non-current assets include the value of all assets that have a life of more than 1 year.

Q: YA Inc. wishes to transfer its equity investments initially classified as fair value through other…

A: Other Comprehensive Income consists the expenses, gains, revenues, and also losses, which does not…

Q: 4-12. On January 1, 2020, Byron, Inc. purchased 30% of the outstanding ordinary shares of Pirates…

A: Journal entries are used by the companies, firms, NPO, etc. to keep a record of the transactions…

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: Cost of equity instrument = P800,000 + P140,000 = P940,000 Fair value = P1,100,000

Q: On January 1, 2021 CCC acquired all of the identifiable assets and assumed all liabilities of DDD by…

A: The value of goodwill arise on excess payment of consideration over the net identifiable assets. Net…

Q: The value of the net assets of Adom Plc as disclosed on the statement of financial position at 31…

A: Fair value of business means market value or estimated fair value of business assets and…

Q: EE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its…

A: The measurement of asset value in case such asset is acquired through issue of securities is made…

Q: January 2, 2020, P Company acquired 80% investment in S Company. The acquisition cost was equal to P…

A: The question is related to Consolidation. The details are as under  Share of P in S Company  = 80%…

Q: 6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the…

A: >When an entity is acquired, the amount is paid to pay for the net assets acquired.>Net assets…

Q: On January 1, 2021, PUP CAF acquired a 10% interest in an investee for P3,000,000. The investment…

A: Working note : 1 Computation of Net Investment Income    $ Share in net income (8000,000 x…

Q: On January 1, 2020, Tam acquired 15% of outstanding common stocks of Tum at a price of P120,000 and…

A: On 01.01.2020, Tam acquired Tum outstanding common stocks = 15% Price = P120000 Cost of acquisition…

Q: On January 1, 2019, Blackpink Company purchased nontrading equity securities. On December 31, 2019,…

A: Since you have asked two different questions under a single question, kindly resubmit another…

Q: Difficult Company acquiredan equity instrument for P3,600,000 on March 31, 2020 to be measured at…

A: Given that: Acquisition costs = P3,600,000 Direct costs incurred = P630,000 At the end, Fair value…

Q: January 1, 2021 CCC acquired all of the identifiable assets and assumed all liabilities of DDD by…

A: The calculation of purchase consideration is as follows: Purchase Consideration=Cash Payment+Fair…

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: Acquisition cost on Mar 31,2020 = Purchase price + direct acquisition costs = 800,000 + 140,000 =…

Q: A Company acquired the assets and assumed the liabilities of B Inc. on June 30, 2022.  The…

A: Shareholders' equity reflects the true networth and the working culture of any organization or a…

Q: 11. On December 1, 2021, ABC Company acquired all the assets and liabilities of XYZ Inc. issuing…

A: Net assets means value of entity's total assets minus total liabilities. Here  Fair value of assets…

Q: The December 31, 2019 condensed balance sheet of Ambani Services, an individual proprietorship,…

A: Calculation of Net Assets value :: Current assets P160,000 Equipment 210,000…

Q: On January 1, 2021 CcC acquired all of the identifiable assets and assumed all liabilities of DDD by…

A: Consolidated assets are determined according to GAAP. They are those assets which should be listed…

Q: On December 31, 2020, Luffy Company's investment in subsidiary account showed a balance of P400,000.…

A: Revaluation is a permissible method under IFRS in which the assets of a company are recorded at…

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: Unrealized Gain: It is a potential gain  which is earned from the investment when the company earns…

Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…

A: The details of two investments made by the company are as follows:   Investment  1 – Acquired on…

Q: On January 1, 2017, Tenants Company acquired as a long term investment for P5,600,000 a 40% interest…

A: Where an entity holds 20% or more of the voting power (directly or through subsidiaries) on an…

Q: 3. On January 1, 2021, Jessa Company acquired 40% of the ordinary shares of an associate. On such…

A: In this question, Jessa companies financial condition is disclosed : - They acquire 40% shares of an…

Q: -On January 1, 2020, Wondersome Company acquired a 70% interest in Philmore Company for a purchase…

A: The question is based on the concept of Financial Accounting.

Q: On January 1, 2020, Albay Company acquired a 30% interest in Bataan Company for P2,430,000. On this…

A: The investment in an associate is accounted for as per the equity method of investment. Under the…

Q: On January 2, 2020, P Company acquired 80% investment in S Company. The acquisition cost was equal…

A: Retained Earnings For the consolidated retained earnings the parent company retained earnings and…

Q: . What is the gain on remeasurement to equity to be recognized for 2021? a. 1,500,000 b. 4,500,000…

A: Therefore, option (a) is the correct answer.

Q: On January 1, 2021 ccC acquired all of the identifiable assets and assumed all liabilities of DDD by…

A: Goodwill: It is an intangible form of asset which shows the value of firm in excess of the normal…

Q: what gain would be recognized in the financial statements for the year ended 31 December 2020?

A: The direct acquisition costs incurred is considered as part of purchase value of equity instrument.…

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: At the beginning of the current year, Jason Company acquired non-trading equity instrument for…

A: Solution: Cost of equity instruments = P4,000,000 + P700,000 = P4,700,000 Fair value of instrument…

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: As per FVTOCI the transaction cost incurred are to added to cost of investment only on initial…

Q: On January 1, 2021 CcC acquired all of the identifiable assets and assumed all liabilities of DDD by…

A: On 01.01.2021, CCC acquired net assets to DDD  Purchase consideration = P4800000 Fair value of…

Q: uestion: What is the 2019 net investment income?

A: Calculation of Fair Value of investment as on 31 Dec 2019     Particulars Amount Carrying…

Q: On December 31, 2014, CHARLIE acquired an investment for P500,000 plus a purchase commission of…

A: Fair value through other comprehensive income account represents the unrealized gain/loss on the…

Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…

A: The details of investment of a company  are as follows:  Investment  1 – Acquired on September 1,…

Q: A Company acquired the assets and assumed the liabilities of B Inc. on June 30, 2022.  The…

A: Solution Total liabilities are the combined debts that an individual or company owes. They are…

Q: 5. In 2020, the entity purchased the following equity securities for the purpose of selling them in…

A: Equity Securities  An instrument that represents a claim on a corporation's assets and profits and…

Q: 1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book…

A: The question gives the information data regarding the balance sheet of F company. Both book value…

Q: On December 1, 2021, ABC Company acquired all the assets and liabilities of XYZ Inc. issuing 100,000…

A: Purchase consideration for business combination = Fair value of shares of ABC Company issued…

Q: 6. On December 31, 2019, Stefan company purchased for 30 per share all 300,000 of Elena company’s…

A: It is pertinent to note that identifiable net asset need to be valued at fair value on the date of…

Q: what gain would be recognized in the financial statements for the year ended 31 December 2020?

A: The gain to be recognized in the financial statements is based on purchase value of investment and…

Q: January 1, 2021, ABC acquired a 10% interest in an investee for P3,000,000. The investment was…

A: This is the method of an accounting which is used by a company to record the profits earned through…

Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which…

A: Investment in shares means where one company buys the share of another company and held as…

Q: The following are summarized Balance Sheets as on March 31, 2020 H. Ltd. acquired 80% shares in S…

A: Calculation of Goodwill Fair Value of Consideration Transferred $2,000 Non Controlling interest…

Q: MEME Corporation’s Retained Earnings at December 31, 2021 amounted to P2,000,000.  On that date, the…

A: Dividend is the part or share of profits which is divided among the shareholders of the company. For…

Q: On January 1, 2019, FFF Company acquired a 10% interest in an investee for P3,000,000. The…

A: Solution- Particular Amount $ Fair value of 10% Interest 4500000 Historical cost 3000000…

Q: should be credited to share premium

A: Current assets P160,000 Equipment P210,000 Less Liabilities (P70,000) Fair value of net assets…

Q: Luxemburg Company purchased the following investments during 2021:…

A: Luxemburg Company purchased the investments in 2021 are : Security A Cost = P180000 Transaction cost…