A parent company owns 80% of the issued capital of its subsidiary. On consolidation, a sale of inventories between parent and subsidiary will be eliminated as follows Select one: A. 20% of the sale amount B. 80% of the sale amount C. 100% of the sale amount D. not eliminated
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A parent company owns 80% of the issued capital of its subsidiary. On consolidation, a sale of inventories between parent and subsidiary will be eliminated as follows
Select one:
A. 20% of the sale amount
B. 80% of the sale amount
C. 100% of the sale amount
D. not eliminated
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Solved in 2 steps
- Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of SubsidiaryCompany’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following:1. Goodwill arising from the consolidation if it is to be computed using the proportionate basis or “PartialGoodwill”2. Non-controlling arising from the consolidation if it is to be computed using the proportionate basis or“Partial Goodwill”3. Goodwill arising from the consolidation if it is to be computed using the full (fair value basis of“Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000.Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: 1. Goodwill arising from the consolidation if it is to be computed using the proportionate basis or “Partial Goodwill”2. Non-controlling arising from the consolidation if it is to be computed using the proportionate basis or “Partial Goodwill”3. Goodwill arising from the consolidation if it is to be computed using the full (fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000.4. Non-controlling interest arising from the consolidation if it is to be computed using the full (fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000.5. Goodwill arising from the consolidation if the non-controlling interest is stated at…Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of SubsidiaryCompany’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: 1.Goodwill arising from the consolidation if the non-controlling interest is stated at fair value ofP2,000,000.2. Goodwill arising from the consolidation if the 100,000, P50 par value shares of the subsidiary arecurrently selling at 90/share.3. Assume Parent purchased 80% of Subsidiary shares for P6,300,000; determine the goodwill arisingfrom the consolidation if the non-controlling interest is stated at fair value of P2,000,000.
- Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: -Non-controlling arising from the consolidation if it is to be computed using the proportionate basis or “Partial Goodwill” -Goodwill arising from the consolidation if it is to be computed using the full (fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000.Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the GOODWILL arising from the consolidation if the 100,000, P50 par value shares of the subsidiary are currently selling at 90 per share.Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the NON-CONTROLLING INTEREST arising from the consolidation if it is to be computed using the proportionate basis (or Partial Goodwill).
- Which item is eliminated when preparing a consolidation worksheet? a. Equipment acquisitions Macca Ltd has a wholly (100%) owned subsidiary, Walnut Ltd. Walnut Ltd has a subsidiary, Cashew Ltd and owns 75% of the subsidiary’s shares. If Cashew Ltd went into liquidation, Macca Ltd would be entitled to: a. 75% of any surplus of Cashew Ltd’s assets over its liabilities. b. 100% of profits made by Cashew Ltd since Macca Ltd acquires Walnut Ltd. c. 75% of profits made by Cashew Ltd since its acquisition by Walnut Ltd. d. whichever of the above that gives Macca Ltd the highest entitlement. b. Intragroup dividends c. Goodwill d. Retained earningParent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of SubsidiaryCompany’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: Assume Parent purchased 80% of Subsidiary shares for P6,300,000; determine the goodwill arisingfrom the consolidation if the non-controlling interest is stated at fair value of P2,000,000.Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: 6. Goodwill arising from the consolidation if the 100,000, P50 par value shares of the subsidiary are currently selling at 90/share.7. Assume Parent purchased 80% of Subsidiary shares for P6,300,000; determine the goodwill arising from the consolidation if the non-controlling interest is stated at fair value of P2,000,000.
- Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of SubsidiaryCompany’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following:1. Non-controlling interest arising from the consolidation if it is to be computed using the full (fair valuebasis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium ofP400,000.2. Goodwill arising from the consolidation if the non-controlling interest is stated at fair value ofP2,000,000.3. Goodwill arising from the consolidation if the 100,000, P50 par value shares of the subsidiary arecurrently selling at 90/share.4. Assume Parent purchased 80% of Subsidiary shares for P6,300,000; determine the goodwill arisingfrom the consolidation if the non-controlling interest is stated at fair value of P2,000,000.Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of SubsidiaryCompany’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: Non-controlling interest arising from the consolidation if it is to be computed using the full (fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000. Goodwill arising from the consolidation if the non-controlling interest is stated at fair value of P2,000,000.Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the GOODWILL arising from the consolidation if it is to be computed using the proportionate basis (or Partial Goodwill).