Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for 2022. On January 3, 2021 ABC acquired 90% of DEF at book value. The following information is available:20222021Inventory, Dec. 31Intercompany cost of sales30,00020,00060,00060,000Downstream Sale120,000100,000Net income – DEF225,000Net Income - ABC200,000500,000550,000Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for2022.

On 03.01.2021, ABC acquired DEF at book value = 90% For year 2022 : Inventory of December 31st =…

On January 3, 2021 ABC acquired 90% of DEF at book value. The following information is available: 田. 2022 2021 Inventory, Dec. 31 30,000 20,000 Intercompany cost of sales 60,000 60,000 Downstream Sale 120,000 225,000 100,000 Net income - DEF 200,000 Net Income - ABC 550,000 500,000 Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for 2022.

On January 3, 2021 ABC acquired 90% of DEF at book value. The following information is available: 田. 2022 2021 Inventory, Dec. 31 30,000 20,000 Intercompany cost of sales 60,000 60,000 Downstream Sale 120,000 225,000 100,000 Net income - DEF 200,000 Net Income - ABC 550,000 500,000 Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net Income for 2022.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
On July 1, 2019, GAR Company acquired 800,000 shares of FAR Company at a price of P13 per share. GAR estimated that the price paid include P1.50 premium in order to gain control over FAR Company. On this date, the fair values of FAR Company’s identifiable assets and liabilities and their carrying values are given below: Book Value Fair ValueCurrent assets P2,000,000 P2,000,000Property, plant and equipment 9,000,000 11,000,000Liabilities P3,000,000 Ordinary shares, P5 par 5,000,000 Retained earnings 3,000,000 Determine the amount of goodwill assuming the non-controlling interest is measured at the proportionate share in the net assets:
Anthem Co. acquired 60% of the outstanding shares of Bethel Co. on January 2, 2021. Anthem Co. acquired it at book value which is the same as its fair value at the date of acquisition. Income Statement of Anthem Co. and Bethel Co. for 2022 are as follows: Anthem Co. Bethel Co. Net Sales P875,000 P350,000 Cost of Sales 525,000 210,000 Gross Profit 350,000 140,000 Operating Expenses 105,000 52,500 Operating Income 245,000 87,500 Dividend Income 56,000 0 Net Income P301,000 P87,500 Bethel Co. made sales to Anthem Co. of P112,000 in 2021 and P168,000 in 2022. Anthem Co. reported inventory on December 31, 2021 amounting to P70,000 of which 20% comes from Bethel Co. and inventory on December 31, 2022 amounting to P84,000 of which 30% comes from Bethel Co. Anthem Co. made sales to Bethel Co. of P273,000 in 2021 and P338,000 in 2022. Bethel reported inventory coming from Anthem Co. as of December 31, 2021 and December 31,…
Chur Company acquired a 40% interest in Flip company for 1,700,000 on January 1, 2020. The shareholders equity of FLip company on Janaury 1 and December 31, 2020 us presented below: January 1 December 31 Share capital 3,000,000 3,000,000 Revaluation surplus - 1,300,000 Retained earnings 1,000,000 1,500,000 On January 1, 2020 all the identifiable assets and liabilities of Flip company were recorded at fair value. Flip company reported profit before income tax of 1,000,000 and paid dividends of 150,000 to shareholders during the current year. The revaluation surplus is the result of the revaluation of land recognized by Flip company on December 31, 2020. Flip presents OCI net of applicable income tax. Additionally, depreciation is provided by Flip Company on the diminishing balance method whereas Chur company uses straight line. Had Flip company used…
Ab Company bought 20% of CD Company' ordinary share on January 1, 2021 for P3,700,000. The carrying amount of CD's net assets at purchase date totaled P16,000,000. Fair values and carrying amount were the same for all items, except for inventory for which fair values exceed their carrying amount by P1,500,000. All inventories at January 1, 2021 were sold during the year. During 2021, CD reported profit of P7,500,000 and paid P1,500,000 cash dividends. What amount should AB Company report as income from investment in its 2021 profit or loss section of the statement of comprehensive income?
On 1 July 2020 P Ltd purchased 100% of the issued capital of S Ltd for a purchase price of $859,000. At that date the shareholders’ equity of S Ltd disclosed: Share capital $121,000 General reserve $50,000 Retained earnings $260,000 Additional information: At the date of acquisition, all net identifiable assets of Sub Ltd were recorded at fair value Sales by S to P Ltd were $67,000. P Ltd sold inventory of $109,000 to S Ltd on 1 July 2021. The original cost of this inventory to P Ltd was $53,000. S Ltd has 47% of this inventory on hand at 30 June 2022 Company tax rate is 30% Requirements: Provide all consolidation journal entries (including workings) in next part of this question Compute the amount of 'realised profit' of the inventory transaction above in the form of 'cost of goods sold' and enter the amount in the answer space below
Joe Company's investment account has the following transaction during the year: Jan. 10, 2020 Acquired the following investments at a lump sum price of P1,000,000: ABC Company - 1,000 shares (par value, P80; market price is P100 per share) DEF Corporation - 5,000 shares (par value, P100; market price is P105 per share) GHI Company - 5,000 shares (par value, P70; the market price is P75 per share) Joe Company paid 1% of the price as the broker's fee. Joe Company classified all the above securities as trading securities. Dec. 31, 2020 The following are the fair values of the investment at year-end: end: ABC Company – P105 per share DEF Corporation – P99 per share GHI Company – P78 per share June 1, 2021 Joe Company sold 500 shares of ABC Company at P115 per share. Sept. 1, 2021 The company purchased 2,000 shares of JKL Company for P300,000. The par value of the JKL share is P160. The company paid 1% of its price as a broker's fee. The company classified this investment…
SG Company acquired 80% of Popsters Company on January 1, 2019, when the stockholders’ equity of Popsters consisted of:Ordinary shares, P100 par P500,000Paid in capital in excess of par 400,000Retained earnings 500,000 SG paid P1,500,000 for the interest acquired plus P100,000 for costs directly attributable to the acquisition and P20,000 for indirect costs. Popsters' carrying value of net assets is equal to their fair values. Questions: 1. The amount of goodwill/(gain on bargain purchase) to be recognized from this combination, assuming SG Company is an SME is: 2. Compute for the net income that must be reflected in the consolidated income statement ----------------------------