An entity accounts for non-current assets using the revaluation model.  On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5.  The following information relates to these assets:     Asset 1 Asset 2 Carrying amount before classification as held for sale   P400,000   P300,000 Revaluation surplus before classification as held for sale   60,000   30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000   The total expense to be recognized in profit or loss related to these assets is

Q: On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration…

A: When an entity purchases or acquires another entity then after this acquisition, a new…

Q: An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity…

A: The amount to be recognized in other comprehensive income related to these assets is the increase or…

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: An entity accounted for noncurrent assets using the cost model. On July 1, 2019, the entity…

A: When there is a difference between carrying value of asset and fair value less cost of disposal,…

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: 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: On December 01, 2021, SEVENTY-SEVEN Corporation declared equipment with carrying amount of…

A: The dividend is paid to shareholders in the form of cash, property or shares from the retained…

Q: An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified…

A: Given that: Carrying amount of Land = P5,000,000 Revaluation Surplus = P1,500,000 Fair value of land…

Q: The Phoenix Company accounts for non-current assets using the revaluation On 30 June 2020 Phoenix…

A: Recoverable amount = Fair value - costs to sell  = P280,000  - 20000 = P260,000

Q: The Investor acquired 75% of Investee on January 1, 2020 for $105, At acquisition the fair value of…

A: 1. The fair value of consideration 105,000   Add: Fair value of non controlling (NCI) 35,000…

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: Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the…

A: Given information,   •On June 30,2021: Fair value =P3,300,000 Cost of disposal=P200,000   •On…

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: On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration…

A: Answer:- When an entity purchases or acquires another entity then after this acquisition, a new…

Q: An entity accounted for land using the revaluation model. On October 1, 2020, the entity classified…

A: The assets held for sale are recognized at FV less cost of disposal. Any revaluation gain on…

Q: What amount should be included as loss on disposal in Rose statement of comprehensive income for the…

A: Comprehensive Income can be defined as the unusual income earned by the business entity inclusive of…

Q: Abba Company accounted for noncurrent assets using the revaluation model.On July 1, 2021, the entity…

A: Impairment loss 2021 = P100,000

Q: On December 01, 2021, SEVENTY-SEVEN Corporation declared equipment with carrying amount of…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: For letters a to d, identify how much to add or deduct from the Investment in Associate account of…

A: Step 1 Investment in Associate refers to the investment in an entity in which the investor has…

Q: Use the following to answer questions 8 through 10: On May 1, 2021, Jazzie Co. agreed to sell the…

A: SOLUTION-   WORKING NOTE- GAIN ON ASSET  SALE =  ($80 MILLION - $ 48 MILLION)…

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: 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: During 2021, Carla Vista Company purchased the net assets of Martinez Corporation for $219560O. On…

A: Gain on bargain purchase = Fair value of net assets acquired  - Purchase consideration for business…

Q: Pearl Company accounts for noncurrent assets using the cost model. On October 30, 2012, the entity…

A: As per accounting standard PFRS 5, when an non current asset is classified as held for sale, thne…

Q: An entity accounted for land using the revaluation model. On October 1,2020, the entity classified a…

A: Impairment loss is the permanent diminution in the value of asset. it shows the decrease in the fair…

Q: On December 01, 2021, SEVENTY-SEVEN Corporation declared equipment with carrying amount of…

A: Gain on inventory = Carrying value of inventory - fair value of inventory = P1,500,000 - P1,300,000…

Q: NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the…

A: The equipment is measured at the fair value as on the date after deduction of costs if any.

Q: An entity accounts for non-current assets using the revaluation model.  On 30 June 2020, the entity…

A: Fair value less cost to sale = Fair value of asset - Estimated cost to sale…

Q: Identify how much to add or deduct from the Investment in Associate account of ABC based on the…

A: Investment can be defined as the finance avenue where the funds are being allocated to those…

Q: Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the…

A: Normally as per standard accounting practices , the fixed…

Q: On January 1, 2019, Intimate Corporation purchased land at a cost of P7,200,000. The entity used the…

A: The question is related to the Non-Current Assets held for sale. The details are given regarding the…

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: On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration…

A: When an entity purchases or acquires another entity then after this acquisition, a new surviving…

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: Happy Inc. accounted for noncurrent assets using the revaluation surplus model. On October 1, 2021,…

A: Non-current assets: Non-current assets are that part of total assets which are composed of mainly,…

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: NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the…

A: As IFRS 5 assets held for sale shall be valued at lower of carrying amount or fair value less cost…

Q: bba Company accounted for noncurrent assets using the revakuation model. On June 30,2021, the entity…

A: Solution Concept When the fair value exceeds the carrying amount The asset is revalued and the…

Q: Mother Company purchased the net assets of Subsidiary Company on July 1, 2019 for a consideration…

A: Once one entity buys or acquires another, a new living entity is formed as a result of the…

Q: Assume that ABC, Inc, acquires a competitor's assets on June 10, 2020. The purchase price was…

A: As per section 197, intangible assets, any intangible asset acquired in relation to the acquisition…

Q: 11. On May 31,2020, Genesis Company has assets and liabilities with the following fair values:…

A: Since you have asked multiple questions, we will solve the first question for you . If you want any…

Q: 4. N COMPANY accounted for noncurrent assets using the revaluation model. On October 1, 2017, the…

A: Gain on Disposal:- When the selling value of assets is more than the carrying or fair value of it…

Q: STRAIGHT Company accounts for non-current assets using the revaluation model. On October 1, 2022,…

A: Revaluation Surplus: A revaluation excess is a kind of equity account in which any increases in the…

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: An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity…

A: Carrying amount remeasured immediately before classification as held for sale as per applicable…

Q: 2. Beauty Company accounted for noncurrent assets using the cost model. Oh November 1, 2021, the…

A: THE ENTITY SHALL MEASURE A NON CURRENT ASSET OR ASSET CLASSIFIED AS HELD FOR SALE AT LOWER OF…

Q: NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the…

A: Introduction Impaired loss=Carrying amount-Fair value

Q: During 2021, Carla Vista Company purchased the net assets of Sandhill Corporation for $2219800. On…

A: The fair market value of an asset implies the present cost of an asset in the market. Fair value can…

Q: Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the…

A:

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.