At the beginning of the current year, WWW Company purchased 10% of RRR Company's outstanding ordinary shares for P4,000,000. WWW Company is the largest single shareholder in RRR and WWW's officers are a majority of RRR's board of directors. The investee reported net income of P5,000,000 for the current year and paid cash dividend of P1,500,000. What amount should be reported as investment in RRR Company at year-end?

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…

A: GIVEN   On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary…

Q: On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash.…

Q: Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net…

A: Computation of the diluted EPS is as follows:

Q: balance in Tuao’s investment in Abulug Company

A: Balance of investment in other entity = Cost of investment + (Profit of the other entity *…

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…

A: The investment in shares of another company gets increased by net profit and gets decreased by…

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A: Number of shares of slug corporation = Paid up value/par value per share

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A: Carrying Value of an Investment calculated by adding the investments with proportionate return of…

Q: At the beginning of the current year, Disgust Company purchased 30,000 shares of an investee's…

A: Solution:- 1)Preparation of journal entries to record the transactions for the current year as…

Q: On January 1, 2021, Manette Company acquired 100,000 ordinary shares of Nette Company for…

A: Solution: Manette should recognized in profit or loss for the year 2021 = Income of Netter company *…

Q: 1.Assume no significant influence was acquired. Prepare the appropriate journal entries from the…

A: Requirement 1:   Pass necessary journal entry.

Q: Duday Corporation incurred the following transactions relating to investment in Efren Corporation…

A: Unrealized gain = Fair value of shares - Sale price of shares=P 192- P190=P2 per share   Amount of…

Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…

A: Unrealized Gain on Investment: In accounting, an unrealized gain is a rise in the value of an asset…

Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…

A: Unrealized Gain on Investment: In accounting, an unrealized gain is a rise in the value of an asset…

Q: Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of…

A: given that, Shaun company reports net income = P280000 Shaun company pays annual cash dividend =…

Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…

A: In the books of Bumili Co. , On 1st January, 2022 : Purchase (10,000 shares) = P1,000,000 I.e Share…

Q: On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost…

A: The consolidated income attributable to the parent entity includes income of the adjusted income of…

Q: On January 1, 20x2, Pfieter Company purchased 80 percent of the outstanding shares of Şedrosky…

A: On 01.01.20x2, Pfieter company purchased outstanding shares of Sedrosky company = 80% Purchase…

Q: Presented below are two independent situations: (a) Sandhill Inc. acquired 10% of the 420,000…

A: Whenever a company invests in another company and as a result, obtains significant influence in the…

Q: A Corporation purchased a 70% interest in B Company on January 1, 2013 for P140,000, when B’s…

A: B total income = P55000 A’ s share = 70% x P55000 = P38500

Q: At the beginning of current year, Disgust Company purchased 30,000 shares of an investee's 200,000…

A: Investment income refers to the income earned by a person or business entity on the investments made…

Q: What is the total amount of consideration paid that should be capitalized by Patrick Corp.?

A: On January 1, 20x1, Patrick Corp. acquired the identifiable net assets of Jinky Corp. by paying cash…

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A: When a company holds 20% or more of the shares of another company it shall be said to have…

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A: As per the business combination standard in IFRS, the dividend income of the company that has…

Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company’s outstanding ordinary shares for…

A: Formula: Ending capital = Beginning capital + Net income - Dividends paid

Q: On January 1, 20X7, Phillips Corporation acquired 35 percent of the outstanding shares of Shell…

A: The equity method of accounting shows the total investment in the associate…

Q: Presented below are two independent Ivanhoe Inc. acquired 10% of the 403,000 shares of common stock…

A: Date Particulars Debit Credit June 17, 2022 Available for sale securities (403000*10) $4,030,000…

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A: The details regarding Consolidation are given. Required  Compute for the Non-controlling Interest…

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A: Where shares are held as investments for short-term (current assets), the shares are recorded at…

Q: Arcola, Inc., acquires all 40,000 shares of Tuscola Company for $725,000. A year later, when…

A:

Q: At the beginning of the current year, Lemon Company purchased 40% of the outstanding ordinary shares…

A: In case of an investment in associate for more than 20% shareholding but less than 50%, the investor…

Q: On January 2, 2022, MAMBA Inc. purchased 5,000 shares of the 20,000 shares outstanding of BLACK…

A: Acquiring the outstanding common shares of a company gives the ownership rights to the buyer. The…

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A: Non-controlling interest refers to the ownership situation when an shareholder of the company owns…

Q: Primus, Inc., owns all outstanding stock of Sonston, Inc. For the current year, Primus reports net…

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

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Q: On January 1, 2008, Pedestal Company purchased 80% of the outstanding shares of Starlet

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Q: On July 1, 2018, Gang purchased 10,000 shares of Lamina ordinary shares for P510,000 plus broker’s…

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A: IAS 28 specifies an investor is said to have significant influence over the investee if the investor…

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A: When son company reacquired his own shares ,then it becomes subsidiary of Ideal co.

Q: On July 1, 20x6 TRUST Company purchased 80% of the outstanding shares of DUREX Company at a cost of…

A: Trust purchased 80% of Doodle company     At cost   $   1,600,000.00   Net assets of Doodle…

Q: Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of…

A: The difference between Purchase Price and Book Value is either Goodwill or Capital Reserve. When…

Q: On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost…

A: In the consolidated financial statement, the unrealized gains between the group transactions are to…

Q: On January 1, 20x1, Pinup Corp. acquired 34,560 outstanding ordinary shares of Slug Corp. for a cash…

A: Non controlling interest is the value of shares owned by minority shareholders. Total Shares =…

Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by…

A: Share Premium Share premium is the addition revenue which are derived in the business after issuing…

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A: This question deals with the calculation of unrealized gain/loss and dividend revenue to be booked…

Q: On January 1, 20x1, Patrick Corp. acquired the identifiable net assets of Jinky Corp. by paying cash…

A:

Q: On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by…

A: The share premium account balance cannot be utilized for distributing dividends but can be utilized…

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A: Right issue gives right to the existing shareholders for purchase of shares at a discounted price or…

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A: The balance sheet is a statement prepared to ascertain the true position of assets and liabilities…

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.