Business combination withc
Q: Required: As an IT Auditor, identify the problems/weaknesses in the development of the new system an...
A: Answer :- System Development Process: - System development process sometimes also known as system d...
Q: Journal entries a. $30,000 cash was borrowed on a five-year 10% note payable, dated 5/1/2021. b. $...
A: Solution A journal is the company's official book in which all business transactions are recorded in...
Q: Babcock Company purchased a piece of machinery for $40,500 on January 1, 2019, and has been deprecia...
A: Calculation of depreciation as per sum digit method As per sum digit method = ( 5 + 4 + 3 + 2 + 1...
Q: A customer has purchased $5,000 vouchers for the cleaning service to be used in next few months. Th...
A: Profit overstated means the profit is shown more as compared to actual profit. Profit understated me...
Q: on stockholders? Explain your reasoning. (Choose all correct responses.) $38.60 to acquire the compa...
A: Stockholders refer to the person or an entity who bought a share or number of shares of a company
Q: On January 1, 2021, Deer Company had a division that met the criteria for discontinuance of a busine...
A: Discontinued Operation- A discontinued operation is a component of an entity that either has been di...
Q: BONITA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,470,000...
A: For preparing a cash flow statement(operating activity), all the non-cash expenses are added to inco...
Q: Activity-Based Management, Non-Value-Added Costs, Target Costs, Kaizen Costing Joseph Hansen, presi...
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-part...
Q: 99 FINANCIAL STATEMENTS 100 DO NOT CHANGE ANYTHING IN THE FINANCIAL STATEMENTS. RESULTS WILL AUTOMAT...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: Assume that sales revenue in 2022 changed to S755,00 and cost of goods changed to S512,000. Income t...
A: Formula: Net Income = Revenues - expenses Gross profit = sales revenue - cost of goods sold
Q: to the nearest integer.) More info Corporate Tax Rate Schedule Taxable income brackets Base tax $o t...
A: Marginal tax rate refers to the extra tax paid for every extra dollar gained by an entity.
Q: The following are facts about a company's activities: Cash flows from operating activities was $33,0...
A:
Q: Explain the benefits of a Return-on-Investment structure within an investment center framework.
A:
Q: needs help defining the costs for his business. Frank also wants to know which costs are relevant or...
A: Relevant cost: relevant cost is the cost which is relevant for decision making, it is relevant to de...
Q: The balance in ABC Company's accounts payable account at December 31, 2021, was P900,000, before any...
A: Accounts Payable: Accounting for accounts payable (AP) is the collection of money owed to vendors a...
Q: Relax Spa Company is engaged in providing facial and body treatment in a spa centre. Customers are ...
A: Closing journal entries: Date Account Titles Debit Credit Dec 31 Service revenue $625,000 ...
Q: Illustration 1. Measuring Goodwill/Gain on Bargain Purchase On January 1, 2021, Amahan Co. acquired ...
A: Goodwill is an intangible asset that is associated with the purchase of one company by another. Spec...
Q: Compute total current liabilities on December 31, 2021.
A: Current Liabilities are the liabilities which are expected to be paid next 12 months or which are sh...
Q: Owing companies would most likely use process costing EXCEPT OA Ryan Hometuilders Inc
A: Process costing is a type of costing which is used for ascertain...
Q: With solution and explanation please
A: FIFO approach means first in first out refers to the shares purchases first sold first. Average appr...
Q: Merry Corporation issued 40,500 ordinary shares, par value P 18 in exchange for equipment. At the da...
A: When an asset is purchased through the exchange of asset or equity shares then the fair market value...
Q: a. Determine Jane's total cash inflows and cash outflows. b. Determine the net cash flow for the mon...
A: Cash is an important current asset which stands with the financial position and provides liquidity m...
Q: Using accrual accounting and the preceding values, show the firm's net proft for the past year in th...
A: Please See Step 2 for the Statement as required.
Q: An engineer bought equipment for P500,000. Other expenses including installation amounted to P30,000...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Compute the net income to be earned under each alternative. Net Income 1. Increase selling price $ 2...
A: Alternative 1: Increase in Selling Price by 10% Alternative 2: Reduce Variable Costs to 55% of Sales...
Q: Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer...
A: * As per the bartleby guidelines, in case of interlinked question answer first 3 only You are eligib...
Q: 2. If XYZ Company Acid-test ratio is computed as 1.7. Which statement interprets the acid-test ratio...
A: Ratio analysis means where different ratio of various years of years companies has been compared and...
Q: Based on number 3, what is the VAT payable
A: VAT Payable = Output VAT - Presumptive Input VAT The rates of VAT are as follows Presumptive input V...
Q: before-tax yearly income of $203,000 and has no debt outstanding. Expanding Hemingway Corporation is...
A: The formula to calculate tax liability is - Tax liability = EBT * Tax rate where, EBT is Earning bef...
Q: Treasury bills are currently paying 4.6 percent and the inflation rate is 1.9 percent. What is the r...
A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value o...
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesal...
A: Given, Issue price =$8,900,000 Cash received =$10,399,742 a. Journalize the entry to record the is...
Q: The chief financial officer (CFO) of New Age Fashion Ltd. has just received a request from a project...
A: Marginal cost-benefit analysis refers to examination of additional benefits of an activity on its co...
Q: 3. SAN JOSE is a producer of cooking oil. The company become VAT registered t the start of 2018. Pre...
A: Presumptive Input tax: Individuals or organizations who are engaged in the processing of sardines, m...
Q: On January 2, 2022, Promenade Company purchased 25% of Twilight Company’s ordinary shares; no goodwi...
A: Under equity method, investment made in an associate is initially carried at cost. At the end of the...
Q: FIFO METHOD On 1 August L&T Co. had a balance in inventory of 120 units at AED14.25 per unit. The fo...
A: The cost of goods sold include the total cost of goods that are sold during the period. FIFO stands ...
Q: Your financial advisor from Bluerock recommends you to invest in one of the plan. You want to compar...
A: The question is based on the concept of Financial Management. Future value can be calculated by mult...
Q: Calculate the discount period for the bank to wait to receive its money: (Use Days in a year table):...
A: Discounted period for the bank is the difference between the total duration and days spent from the ...
Q: You are buying a machine with a down payment of $200,000 and annual payments of $40,000 per year for...
A: The present value of all cost is the net cost of all cost including the down payment and all cost an...
Q: For 2020, Ross Corporation had pretax ordinary income of $500,000 and sold for $150,000 an asset pur...
A: Tax Rate for Companies in US for FY 2020 is Flat 21 % Therefore Tax on ($500,000 +$25,000 ) = $525,0...
Q: Which of the following statements is not correct? Select your answer. Different users have different...
A: Statement 1 is correct as there are many users of financial statements and they have different uses ...
Q: You deposited PHP5,500 in a bank with an interest rate of 6% for l year. What is the uture value of ...
A: Deposited amount (PV) = PHP5,500 Interest rate (r) = 6% Period (n) = 1 Year
Q: dividends amounting to P960,000 during 2022. How much did Promenade pay for its investment in Twilig...
A: Investment refers to those mechanism which is used by the company for the purpose of generating inco...
Q: ABC Corporation’s liability account balances at June 30, 2018, included a 10% notes payable in the a...
A: What amount should be recorded as accrued interest for this note:- Accrued interest:- = outsta...
Q: Answer each independent question, (a) through (e), below. a. Project A costs $5,000 and will genera...
A: * As per Bartleby guideline, if question contains multiple question then answer first three only. ...
Q: he following CVP income statements are available for Cullumber Corp. and Ivanhoe Cullumber Ivanhoe, ...
A: COST VOLUME ANANLYSIS is used to do analysis of how changes that has took place in cost and volume a...
Q: n's net profit for the past year using the accrual basis of accounting. 's net cash flow for the pas...
A: Net Profit = Sales Revenue - Cost of goods sold.
Q: Case 2: Non-Controlling Interest measured at fair value Inahan Co. elects the option to measure the ...
A: 1. Transaction cost incurred = fair value of land - book value of land =P1000000-P750000 = P 250000...
Q: On January 1, 2021, Deer Company had a division that met the criteria for discontinuance of a busine...
A:
Q: Average corporate tax rates Ordinary income in 2017 was taxed subject to the rates shown in the acco...
A: Pre tax Income Level $ 19,800 $ 70,800 $ 302,000 $ ...
Q: a. Calculate the firm's tax liability.
A: A firm's tax liability refers to the total amount of tax debt owed by corporation to a government. U...
Step by step
Solved in 2 steps
- M Inc. acquired 100% voting rights in K Co. by contract alone. No consideration was transferred on the arrangement. K’s net identifiable assets have fair value of Php1,800,000. M Inc. measures the NCI at proportionate share. How much is the goodwill?Nag Co. acquired 100% voting rights in Sag Co. by contract alone. No consideration was transferred on the arrangement. Sag's net identifiable assets have a fair value of P1,800,000. Nag measured the NCI at 'proportionate share. How much is the goodwill?After the business combination on the basis of full-goodwill approach, what amount of stockholders' equity will be reported? a. P355,000 b. P397,000 c. P419,500 d. P495,000
- 5. On January 1, 20x1, DIAPHANOUS Co. acquired all of the identifiable assets and assumed all of the liabilities of TRANSPARENT, Inc. by paying cash of P4,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of P6,400,000 and P3,600,000, respectively. Additional information:In addition to the business combination transaction, the following have also transcribed during the negotiation period: a. After the business combination, TRANSPARENT will enter into liquidation and DIAPHANOUS agreed to reimburse TRANSPARENT for liquidation costs estimated at P80,000. b. DIAPHANOUS agreed to reimburse TRANSPARENT for the appraisal fee of a building included in the identifiable assets acquired. The agreed reimbursement is P40,000.c. DIAPHANOUS entered into an agreement to retain the top management of TRANSPARENT for continuing employment. On acquisition date, DIAPHANOUS agreed to pay the key employees signing bonuses totaling P400,000.d. To persuade, Mr.…If Alakdan Co., a new company would acquire the net assets of Cardo and Allana Company by issuing 50,000 shares of P25 par value ordinary shares with fair value of P130 per share and paying professional finders fee and stock registration costs of P125,000 and P65,000, respectively, determine:i. The total amount of Goodwill to be reported by Alakdan Co.ii. The total assets of Alakdan Co. after the business combination.iii. The total stockholders equity of Aklan Co after the business combination.iv. The journal entries to be made by Alakdan Co. for the business combination.After the business combination on the basis of full-goodwill approach, what amount of non-controlling interest will be reported? a. P42,000 b. P52,500 c. P60,900 d. P64,500
- Company Aero is about to acquire 100% of company Berry. Company Berry has identifiable net assets with book value of $300,000 and $500,000 respectively. As payment Company Aero will issue common stock with a fair value of $75,000. How should the transaction be recorded if the acquisition is:a) An acquisition of net assets?b) An acquisition of Company B’s common stock and Company B remains a separate legal entity?After the business combination on the basis of full-goodwill approach, what amount of consolidated retained earnings will be reported? a. P295,000 b. P268,000 c. P232,000 d. P205,000Illustration 1. Share-for-share exchanges On January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of the assets, liabilities and equity of Frank and Richard before the business combination are as follows: On the negotiation for the business combination, the acquirer incurred the following transaction costs: P45,000.00 for legal fees; P 5,000.00 for due diligence cost and P 80,000.00 for the general admin cost and cost of maintaining an internal acquisition department. Case 1: before the transaction, Frank, Co. have 7,000 outstanding shares. Frank Co. Issued additional 10,000 shares as consideration for a 100% interest in Richard. Frank’s shares currently sells P150 per share in the market, while Richard’s shares are quoted at P200 per share. With the stated facts, answer the following: 1.How much is the Share Premium of the combined company after the business combination?a. P 730,000.00b. P 1,230,000.00c. P 800,000.00d. P 1,700,000.002.How much is…
- 1. Parent Company purchased 90% of the outstanding shares of Subsidiary Company paying P975,000. At this time, Subsidiary’s Net assets had a fair value of P1,050,000 however, the 10% minority interest are currently being traded in the stock market at a total price of P110,000. The non-controlling interest is to be stated at fair value. What is the goodwill to be reported as a result of the business combination? 2. Parent Company acquires 75% of Subsidiary Company’s ordinary shares for P225,000 cash. At that date, the shares of Subsidiary are currently selling at P41/share. Subsidiary has a total of 8,000 shares outstanding. Also on that date, Subsidiary reports identifiable assets with a book value of P400,000 and a fair value of P510,000, and it has liabilities with a book value and fair value of P190,000.10. What is the goodwill or (income) from acquisition arising from the consolidation if the non-controlling interest is to be stated at fair value?Illustration 1. Share-for-share exchangesOn January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of the assets, liabilities and equity of Frank and Richard before the business combination are as follows: On the negotiation for the business combination, the acquirer incurred the followingtransaction costs: P45,000.00 for legal fees; P 5,000.00 for due diligence cost and P 80,000.00 for the general admin cost and cost of maintaining an internal acquisition department. Case 1: before the transaction, Frank, Co. have 7,000 outstanding shares. Frank Co. Issued additional 10,000 shares as consideration for a 100% interest in Richard. Frank’s shares currently sells P150 per share in the market, while Richard’s shares are quoted at P200 per share.With the stated facts, answer the following: 1. How much is the Non-Controlling Interest in the acquiree?a. P 0.00b. P 150,000.00c. P 310,000.00d. P 500,000.002. How much is the previously held equity interest in…Illustration 1. Share-for-share exchangesOn January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of the assets, liabilities and equity of Frank and Richard before the business combination are as follows: On the negotiation for the business combination, the acquirer incurred the followingtransaction costs: P45,000.00 for legal fees; P 5,000.00 for due diligence cost and P 80,000.00 for the general admin cost and cost of maintaining an internal acquisition department. Case 2: before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued 12,000 shares as consideration for a 60% interest in Frank. Richard’s shares currently sell P55 per share in the market, while Frank’s shares are quoted at P225 per share. Richard, Inc. elected to measure NCI at “proportionate share”. With the stated facts, answer the following: 20.How much is the total Goodwill in the books of Richard, Inc. after the business combination?a. P 140,000.00b. P…