ABC Co. acquired 60% interest in DEF Co. On January 1,2021. Information on the combining entities' accounts righ after the business combination follows: ABC Co. (carrying Amount) DEF Co. (carrying Amount) 444,000 Other Assets Investment in Subsidiary Liabilities 1,296,000 360,000 (240,000) (96,000) Net assets 1,416,000 348,000 How much is the consolidated total assets?
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- Bale Co. acquired Silo Inc. on December 31, 2021, in an acquisition business combination transaction. Bale's net income for the year was $1,400,000, while Silo had net income of $400,000 earned evenly during the year. Bale paid $100,000 in direct combination costs, $50,000 in indirect costs, and $30,000 in stock issuance costs to effect the combination. Required: What is consolidated net income for 2021?The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2019, just after the parent had purchased 90% of the subsidiary's stock: Case I Case II P Company S Company P Company S Company Current assets $ 880,000 $260,000 $ 780,000 $280,000 Investment in S Company 190,000 190,000 Long‐term assets 1,400,000 400,000 1,200,000 400,000 Other assets 90,000 40,000 70,000 70,000 Total $2,560,000 $700,000 $2,240,000 $750,000 Current liabilities $ 640,000 $270,000 $ 700,000 $260,000 Long‐term liabilities 850,000 290,000 920,000 270,000 Common stock 600,000 180,000 600,000 180,000 Retained earnings 470,000 (40,000) 20,000 40,000 Total $2,560,000 $700,000 $2,240,000 $750,000…Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger’s accounts on that date (prior to creating the combination) are as follows, along with the book value of Wilkins’s accounts: WilkinsBook Value GrangerBook Value GrangerFair Value Retained earnings, 1/1/21 $ 250,000 $ 240,000 Cash and receivables 170,000 70,000 $ 70,000 Inventory 230,000 180,000 210,000 Land 320,000 220,000 240,000 Buildings (net) 480,000 240,000 280,000 Equipment (net) 120,000 90,000 90,000 Liabilities 650,000 440,000 430,000 Common stock 360,000 80,000 Additional paid-in capital 60,000 40,000 Assume that Wilkins issued 13,000 shares of common stock with a $5 par value and a $46 fair value for all of the outstanding stock of Granger. What is the consolidated balance for Land as a result of this acquisition transaction?
- Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger’s accounts on that date (prior to creating the combination) are as follows, along with the book value of Wilkins’s accounts: WilkinsBook Value GrangerBook Value GrangerFair Value Retained earnings, 1/1/21 $ 250,000 $ 240,000 Cash and receivables 170,000 70,000 $ 70,000 Inventory 230,000 180,000 210,000 Land 320,000 220,000 240,000 Buildings (net) 480,000 240,000 280,000 Equipment (net) 120,000 90,000 90,000 Liabilities 650,000 440,000 430,000 Common stock 360,000 80,000 Additional paid-in capital 60,000 40,000 Assume that Wilkins issued 13,000 shares of common stock with a $5 par value and a $46 fair value for all of the outstanding shares of Granger. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances) as a result of…On January 1, 2021, Parent Co. acquired 80% of Subsidiary In's outstanding stocks for P1,600,000 cash. Subsidiary Inc's balance sheet shows P3,000,000 identifiable assets and P1,800,000 liabilities. All assets and liabilities of Setter are fairly valued, except for an undervalued equipment. The stock acquisition resulted to a goodwill of P700,000. Assume Parent had P5,100,000 total assets prior to the said transaction. NCI is measured at fair value. How much is the total assets in the consolidated balance sheet after the stock acquisition?Parent Company acquired 80% of the ordinary shares of Subsidiary Company at a time when Subsidiary’s book values and fair values were equal. Selected financial data are available for 2022 (see image below).Intercompany sales are as follows (see image below).How much is the Consolidated Net Income? please explain.
- On January 2, 2022, Papa, Inc. acquired 80% of the outstanding shares of Son Company for P1,952,000 cash. At the time of the acquisition, the stockholders' equity section of the two companies is shown: (Amounts In Thousands) Parent, Inc. Subsidiary Corp.Ordinary share capital 4,000 1,600 Ordinary share premium 3,000 480 Retained earnings 6,840 420 Total 13,840 2,500 Direct costs of business combination incurred amounted to P33,000.Assuming NCI is measured at proportionate share. What is the consolidated shareholders' equity on January 2, 2022?On May 31, 2021, Armstrong LTD paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: Current assets $ 900,000 Noncurrent assets 2,700,000 Total assets $3,600,000 Current liabilities $ 600,000 Long-term liabilities 500,000 Stockholders’ equity 2,500,000 Total liabilities and stockholders’ equity $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000. At December 31, 2021, Hall reports the following balance sheet information: Current assets $800,000 Noncurrent assets (including goodwill recognized in purchase) 2,400,000 Current liabilities (700,000) Long-term liabilities (500,000) Net assets $2,000,000 It is…Pauline Company acquired 4,000 shares of the outstanding stock of Sophia Company for P1,200,000 on January 1, 2020. Pauline Company also paid P100,000 direct costs related to the combination. On this date, the stockholders equity of Sophia Company consisted of Capital Stock of P500,000, P100 par and Retained Earnings of P600,000. The carrying values of Sophia Company identifiable assets and liabilities are equal to their fair market values. NCI is measured at its proportionate share.On the same date, Pauline Company sold equipment costing P100,000 with accumulated depreciation of P60,000 to Sophia Company for P120,000. Pauline Company was depreciating the equipment for 10 years with no salvage value using the straight-line method and Sophia Company continued the same method. At the end of the year, Pauline Company reported net income of P300,000 and paid dividends of P250,000 while Sophia Company reported net income of P200,000 and paid dividends of P10 per share.The consolidated net…
- On July 1, 2022, Livermore, Inc., acquired 60 percent of Rough Company for $420,000. The remaining 40 percent of Rough's outstanding shares continue to trade at a collective value of $280,000. On that date patent owned by Rough with 10-year remaining life is undervalued by $100,000. Rough has a book value of net assets at $480,000 on January 1, 2022. The affiliates report the following 2022 amount from their own separate operations: Livermore Rough Revenues $700,000 $220,000 Expenses 450,000 70,000 Dividends (declared quarterly) 124,000 30,000 Assume Rough's revenues and expenses occurred uniformly throughout the year. On 2022 consolidated income statement, what is the amount of consolidated net income allocated to the controlling interest? a. $302,000 b. $286,000 c. $292,000 d. $264,000Parent Company acquired 100% of Subsidiary Company prior to 2020. During 2020, the individual entities included in their financial statements the following: Parent Subsidiary Key officers’ salaries 750,000 500,000 Officers’ expenses 200,000 100,000 Loans to officers 1,250,000 500,000 Intercompany sales 1,500,000 What total amount should be reported as related party disclosures in the notes to the 2020 consolidated financial statements?ABC Corp. acquired all the assets and liabilities of XYZ Corporation by issuing shares of its common stock. On January 1, 2020, partial balance sheet data for the companies prior to the business combination and immediately following the combination is provided. ABC Corp. XYZ Corp. Combination Cash 65,000 25,000 90,000 Accounts receivable 72,000 20,000 94,000 Inventory 33,000 45,000 88,000 PPE (net) 400,000 150,000 650,000 Goodwill ? Total Assets 570,000 240,000 ? Accounts payable 50,000 25,000 75,000 Bonds payable 250,000 100,000 350,000 Common stock, P2 par 100,000 25,000 160,000 Share Premium 65,000 20,000 245,000 Retained earnings 105,000 70,000 ? Total Liab and Equity 570,000 240,000 ? What is the fair value of the net assets held by XYZ Corp at the date of combination? Group of answer choices 115,000 270,000 497,000…