9. Tiger acquired 20% share capital of Deer on 1 August 2021 at the cost of £5.5million. Tiger has classified Deer as an associate undertaking. For the year ended 31 October 2021, Deer has reported a net profit of £937,500. What is the value of the associate investment in the group statement of financial position of Tiger as at 31 October 2021? A. £5,546,875 £6,125,000 £5,968,750 B. C. D. £5,500,000
Q: Using the information above, prepare a balance sheet as of December 31, 2022. (Hint: Solve for the…
A: BALANCE SHEETBalance sheet is one of the Important Financial Statement of the Company. Balance sheet…
Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…
A: Relevant cost can be defined as cost which varies under the two alternatives or which is avoidable…
Q: ntioch Company makes eBook readers. The company had the following amounts at the beginning of Year…
A: Cost of goods manufactured is the total cost incurred in factory for the production of goods while…
Q: Required information Exercise 9-4A (Algo) Recognizing sales tax payable LO 9-2 [The following…
A: The sales tax refers to the tax levied on goods and services. The sales tax is generally levied as…
Q: Prepare a depreciation schedule for six years using the double-declining-balance method (Boi…
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: do
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives.…
Q: plete the Cost Reconciliat Cost Reconciliation Schedule Costs accounted for Transferred out Work in…
A: Lets understand the basics.Equivalent cost per unit calculate by the entity in order to allocate…
Q: What effect did this error have on the combined pretax income of the two quarters?> Which quarter's…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the…
A: An expenditure that won't be incurred if a specific activity is not carried out is called an…
Q: The general ledger of Red Storm Cleaners at January 1, 2021, Includes the following account balanc…
A: Lets understand the basics.There are various stages through which statement of financial position…
Q: Key figures for the recent two years of both Apple and Google follow. Apple $ millions Net income…
A: Answer:- Formulas:- 1. Profit margin = (Net income / Net sales) x 1002. Current ratio = Current…
Q: Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop…
A:
Q: Sherise Saad, Kait Steven, and Jed Pert have formed a partnership. Saad invested $110,000, Steven…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: domestic customers. Gracius Manufacturing has a policy of adding a 20% markup to full costs and…
A: Assuming that all variable costs will be incurred for the special order and there will be no…
Q: d. Determine the number of operating hours such that the present value of cash flows equals the…
A: Net cash flow is determined by reducing the cash outflows from the cash inflows of the organization.…
Q: all of those answers are incorrect. i tried three times
A: The costs transferred from raw materials inventory, factory labor, and manufacturing overhead would…
Q: State the effect (cash receipt or cash payment and amount) of each of the following transactions,…
A: These are the stock issued by the company, which has been repurchased from the stockholders by the…
Q: Required information [The following information applies to the questions displayed below.] The Shirt…
A: FIFO stands for first in first out.LIFO stands for Last in first out.The gross margin is calculated…
Q: A year end data of Snikers Corp. is given here for T4A reporting purpose. You are responsible to…
A: T4A is used to report all other incomes which arare not reported on other slips earned in the…
Q: Ferris Company began 2013 with 6.000 units of its principal product. The cost of each unit is 58. Me…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: ed A Assume that only one product is being sold in each of the four following case situations:…
A: Variable costing: Variable costing is the method that is used by the management (managers) for…
Q: Joe's Company produces a single product and has prepared this standard cost sheet for one unit of…
A: Lets understand the basics.Material price variance is a variance between the ratr at which material…
Q: Compute free cash flow. (Show amounts that decrease free cash flow with either a-sign e.g.-15,000 or…
A: It is important in the business entity to prepare the Cash flow statement which can determine the…
Q: hington Inc. designs, manufactures, and markets personal computers and related software. Cannington…
A: Solution:a. Book value of the fixed assets for the current year :Current year Preceding year Land…
Q: Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue…
A: CVP analysis is used to identify the changes in costs and volume affect a company's operating…
Q: Match the 10 system failures with a control plan that would best prevent the system failure from…
A: Internal controls are the steps a business takes to safeguard its assets, ensure the reliability and…
Q: Complete the "Cost Reconciliation Schedule" part of the production cost report. Cost Reconciliation…
A: Lets understand the basics.Equivalent cost per unit calculate by the entity in order to allocate…
Q: 1. Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the…
A: Bonds are the type of debt instrument that the government or corporation issues to raise money. The…
Q: M Gmail 14 ces YouTube Required information [The following information applies to the questions…
A: The inventory valuation method mainly includes three methods:LIFO - According to this, the inventory…
Q: QUESTION: Manny Malhotra Inc., produces and sells high quality fishing rods, with most sales…
A: CVP analysis is used to identify the changes in costs and volume affect a company's operating…
Q: Marian Plunket owns her own business and is considering an investment. If she undertakes the…
A: Net present value refers to the method of capital budgeting used for estimating the viability of the…
Q: A company purchases a 6,552-square-foot building for $375,000. The building has two separate rental…
A: Space used in unit A1,872square feetRent per square foot$2.50Rental value for unit A (1,872 *…
Q: Marco Company shows the following costs for three jobs worked on in April. Job 307 $ 41,400 24,400…
A: Cost of goods manufactured is the amount of cost incurred on the making of the goods. It includes…
Q: Coronado Ltd. issued a $992,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12%…
A: Bonds can offer a reduced degree of risk compared to other investments and offer investors a fairly…
Q: Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:…
A: The contribution margin is calculated as difference between sales and variable costs. The unit cost…
Q: Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in…
A: The current ratio measures the organization's ability to meet the short-term liabilities due within…
Q: Exercise 6-13 Estimating ending inventory-retail method LO6 During 2023, Harmony Co. sold $525,000…
A: The cost to retail ratio is used to measure the inventory at cost using retail method. The ending…
Q: Travis McAllister operates a surveying company. For the first few months of the company's life…
A: Financial statements are the records of financial performance of a business, common type of…
Q: following cost data relate to the manufacturing activities of Chang Company during the just…
A: Manufacturing overhead is applied on the basis of predetermined overhead rate. If the applied…
Q: 1. What effect did this error have on the combined pretax income of the two quarters?> 2. Which…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The company's accounting…
A: Special order means one-time order that is received from not a regular customer. Special order…
Q: Cycle Accessories manufacturers cellphone holders that can be mounted on the handle bars of most…
A: The least-square regression method computes the variable cost per unit (b) as follows: -X is the…
Q: Mr. and Mrs. L are calendar-year, cash-basis taxpayers. They have their own business, which they…
A: The investment interest deduction is subject to certain limitations, including the deduction cannot…
Q: Splish Brothers Limited had the following statement of financial position for the current year,…
A: A classified balance sheet, is a statement that shows assets, liabilities, and equity, divided into…
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…
A: The FIFO method, which stands for "First-In, First-Out," is an inventory valuation method used to…
Q: On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account…
A:
Q: (a) How large a sample would be needed to estimate the true proportion of jets with the wiring…
A: To estimate the true proportion of jets with the wiring problem, we can use the formula for…
Q: P4.4 (LO 1, 2, 4), AP Financial Statement Rusthe Management Services began business on January 1,…
A: Accounting Worksheet :An Accounting worksheet is a document used in accounting and book keeping. It…
Q: 1-b. Prepare contribution format income statements for May.
A: The contribution margin is the margin after deducting variable costs from the revenue (sales). This…
Q: Calculate the normal cost of the work in process inventory lost during the fire. Cost of the work in…
A: Work in process are the goods that are partly finished and fall between the status of Raw Material…
Step by step
Solved in 3 steps with 2 images
- 1. On 1 January 2019, Pitty Ltd purchased 30% of the shares in Annah Ltd for P700, 000. At this date, Annah Ltd's net assets stood at P1, 4m. At 31 December 2019, Annah Ltd has net assets of P1, 5m. Pitty Ltd sold goods worth P160, 000 to Annah Ltd at a margin of 25%. Half of the goods remained in inventory at the year-end. Calculate the value of the investment in associate as at 31 December 2019?Sydney Ltd purchased 20% of the shares in Melbourne Ltd on 1 July 2019 for $250,000. During the year Melbourne Ltd announced a netprofit of $60,000 and declared and paid dividends of $20,000.If Sydney Ltd accounted for the investment in Melbourne Ltd using the cost method how much revenue would Sydney Ltd have recogniseddue to its investment in Melbourne Ltd for the year ending 30 June 2020.Trifles Ltd acquired 280,000 shares in Bamburg Ltd on 01 July 2019 and as a resultTrifles Ltd has a control of 80% in Bamburg. The purchased consideration transferredby Trifles Ltd in exchange of the shares in Bamburg Ltd was as follows: (i) (ii) (iii) Cash paid of $ 565,000Cash to be paid in four year time is $ 500,000Share exchange of two shares in Trifles Ltd for every seven shares inBamburg Ltd. The market price of Trifles Ltd at the date of acquisition was$ 3. The par value of Trifles Ltd’ ordinary shares is $ 0.5 each. Legal fees associated with the acquisition were $ 75,000.The cost of capital of Trifles Ltd is 15%.a) Calculate the fair value of the consideration to acquire control of BamburgLtd at the acquisition date. Bamburg Ltd’s retained earnings at the date of acquisition was $ 135,000. Noordinary shares were issued/ redeemed by the subsidiary since acquisition. Thegroup used the proportion of the net assets of the subsidiary company tomeasure non-controlling…
- 4. Assume that the entity is a medium-size and the company policy is to account this type of investment at fair market value, how much investment income should be reported by Jessa Company for 2021? Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share capital. The investee’s share capital outstanding at December 31, 2021 include P5,000,000 of 10% cumulative preference share capital and P10,000,000 of ordinary share capital. The investee reported net income of P6,000,000 for 2021. No dividend was declared for both preference and ordinary share in 2021Daniel Ltd purchased 75 per cent of the issued capital and in the process gained control over Riccardo Ltd on 1 July 2020. The fair value of the net assets of Riccardo Ltd at purchase was represented by: Share Capital $3,760,000 Retained Earnings 1,320,000 Daniel Ltd paid cash consideration of $4 000 000 for Riccardo Ltd. During the period ended 30 June 2021, Riccardo Ltd paid management fees of $540 000 to Daniel Ltd and Riccardo Ltd had an operating profit of $980 000. Riccardo Ltd's opening retained earnings at the beginning of the period were $1 460 000. At the end of the period Riccardo Ltd declared a dividend of $90 000. There were no other inter-company transactions. Goodwill was determined to have been impaired by $19 000 during the period. Companies in the group accrue dividends when they are declared by subsidiaries.For the period ended 30 June 2021, what consolidation journal entries are required and what is the non-controlling interest?DDaniel Ltd purchased 75 per cent of the issued capital and in the process gained control over Riccardo Ltd on 1 July 2020. The fair value of the net assets of Riccardo Ltd at purchase was represented by: Share Capital $3,760,000 Retained Earnings 1,320,000 Daniel Ltd paid cash consideration of $4 000 000 for Riccardo Ltd. During the period ended 30 June 2021, Riccardo Ltd paid management fees of $540 000 to Daniel Ltd and Riccardo Ltd had an operating profit of $980 000. Riccardo Ltd's opening retained earnings at the beginning of the period were $1 460 000. At the end of the period Riccardo Ltd declared a dividend of $90 000. There were no other inter-company transactions. Goodwill was determined to have been impaired by $19 000 during the period. Companies in the group accrue dividends when they are declared by subsidiaries.For the period ended 30 June 2021, what consolidation journal entries are required and what is the non-controlling interest?
- On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment represents a 16% interest in Mayson Ltd. Clarke Inc. has classified this investment as FVTOCI. On December 31, 2020, Mayson Ltd paid a $35,000 dividend to its shareholders. On April 30, 2021, Mayson Ltd's shares were valued at $30 per share, and Mayson Ltd. reported a net loss of $27,000 for the year. On June 15, 2021, Clarke Inc sold the shares for $37,000. Both Clarke Inc and Mayson Ltd have April 30, 2021, year-ends. Required: Prepare dated journal entries for the investment on the acquiring company's books from acquisition to disposal. Ignore income taxes. Journal entry descriptions are optional.Trifles Ltd acquired 280,000 shares in Bamburg Ltd on 01 July 2019 and as a result Trifles Ltd has a control of 80% in Bamburg. The purchased consideration transferred by Trifles Ltd in exchange of the shares in Bamburg Ltd was as follows:(i) Cash paid of $ 565,000(ii) Cash to be paid in four year time is $ 500,000(iii) Share exchange of two shares in Trifles Ltd for every seven shares in Bamburg Ltd. The market price of Trifles Ltd at the date of acquisition was $ 3. The par value of Trifles Ltd’ ordinary shares is $ 0.5 each.Legal fees associated with the acquisition were $ 75,000.The cost of capital of Trifles Ltd is 15%. Assume that Trifles Ltd has only recorded the cash transaction of $ 565,000. Prepare the consolidated Statement of Financial Position (Equity and Liabilities section only) to show how the deferred consideration and the share exchange should be accounted for the year ended 30 June 2020.Trifles Ltd acquired 280,000 shares in Bamburg Ltd on 01 July 2019 and as a result Trifles Ltd has a control of 80% in Bamburg. The purchased consideration transferred by Trifles Ltd in exchange of the shares in Bamburg Ltd was as follows: (i) Cash paid of $ 565,000 (ii) Cash to be paid in four year time is $ 500,000 (iii) Share exchange of two shares in Trifles Ltd for every seven shares in Bamburg Ltd. The market price of Trifles Ltd at the date of acquisition was $ 3. The par value of Trifles Ltd’ ordinary shares is $ 0.5 each. Legal fees associated with the acquisition were $ 75,000. The cost of capital of Trifles Ltd is 15%. a) Calculate the fair value of the consideration to acquire control of Bamburg Ltd at the acquisition date.
- Trifles Ltd acquired 280,000 shares in Bamburg Ltd on 01 July 2019 and as a result Trifles Ltd has a control of 80% in Bamburg. The purchased consideration transferred by Trifles Ltd in exchange of the shares in Bamburg Ltd was as follows:(i) Cash paid of $ 565,000(ii) Cash to be paid in four year time is $ 500,000(iii) Share exchange of two shares in Trifles Ltd for every seven shares in Bamburg Ltd. The market price of Trifles Ltd at the date of acquisition was $ 3. The par value of Trifles Ltd’ ordinary shares is $ 0.5 each.Legal fees associated with the acquisition were $ 75,000.The cost of capital of Trifles Ltd is 15%.a) Calculate the fair value of the consideration to acquire control of Bamburg Ltd at the acquisition date. Your answer should include a brief explanation if any of the above issue(s) is/are not required to be accounted in your working(s).Warsaw Ltd acquired 60% of the ordinary shares of Krakow Ltd on 1 September 2020 when the issued share capital of Krakow Ltd was €3 million and its retained earnings €1 million. The consideration is as follows: The issue of one million ordinary €1 shares in Warsaw Ltd at market value €2.20; A cash payment of €330,000. The non-controlling interests in the net assets of Krakow Ltd as at 1 September 2020 is valued at €1,650,000. Required: Calculate the following as at 1 September 2020: Goodwill Non-controlling interestsOn January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The investment is measured at fair value through other comprehensive income. Brokerage fees amounted to P120,000. A P5 dividend per share of Jasper had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. No other transactions occurred in 2020 affecting the investment in Jasper's share. What is the initial measurement of the investment?