Please answer in good accounting form. Thanks On January 1, ABC Acquired 60 percent of the outstanding voting stockof XYZ for P301,500 cash consideration. The remaining 40 percent ofXYZ had an acquisition date fair value of P138,500. On January 1, XYZpossessed equipment (5-year life) that was undervalued on its booksP25,000. XYZ also had developed several secret formulas that ABCassessed at P50,000. Theses formulas, although not recorded on XYZ'sfinancial records, were estimated to have a 20-year future life. ABC alsodetermined that the inventory of XYZ is overvalued by P10,000. 80% ofthese inventories remain unsold by the end of the year. As of December31, the financial statements appeared as follows:АВСXYZRevenues (from sales andP (300, 000)P (200, 000)dividends)Cost of goods soldExpensesNet Income140, 00020, 000P (140, 000)80, 00010, 000P (110, 000)Retained eamings 1/1Net IncomeDividends paidRetained eamings 1231P (300, 000)(140, 000)P (150, 000)(110, 000)10,000P (250, 000)-0-P (440, 000)Cash and ReceivablesInventoryInvestment in SSEquipmmt inm)P 210, 000150, 000301.500P90, 000110, 000-0-Click to see ant АВСXYZP (300, 000)P (200, 000)Revenues (from sales anddividends)Cost of goods soldExpensesNet Income140, 00020, 000P (140, 000)80, 00010, 000P (110, 000)P (150, 000)(110, 000)10,000P (250, 000)P (300, 000)(140, 000)Retained earnings 1/1Net IncomeDividends paidRetained eamings 12/31-0-P (440, 000)Cash and ReceivablesInventoryInvestment in SSEquipment (net)Total AssetsP 210, 000150, 000301,500398,500P1,060, 000P90, 000110, 000-0-300, 000P500, 000LiabilitiesCommon stockRetained earmings 1231Total Liabilities and EquitiesP (420, 000)(200, 000)(440, 000)P (1,060,000)Р (150, 000)(100, 000)(250, 000)P (500, 000)Determine the consolidated expenses to be reported for the year.Your answer

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Determine the consolidated expenses to be reported for the year.

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 8MC

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On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: DETERMINE THE CONSOLIDATED EXPENSES TO BE REPORTED FOR THE YEAR.
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: REQUIRED: 1. Determine the net income (net loss) attributable to the non-controlling interest.
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: As an independent case, assume that the goodwill is impaired by P5,000 by December 31, determine the net income/(net loss) attributable to the controlling interest. Your answer
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: A. Determine the consolidated expenses to be reported for the year B. Determine the net income (net loss) attributable to the non-controlling interest
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: * REQUIRED: Determine the consolidated assets as of December 31
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: Determine the consolidated assets as of December 31.
On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash consideration. The remaining 40 percent of SS had an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5-year life) that was undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at P50,000. Theses formulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determined that the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: 1) From the data below, determine the net income/(net loss) attributable to the non-controlling interest. 2) From the data below, determine the consolidated assets as of December 31 and the consolidated expenses to be reported for the year. 3) From the data below, determine the net income/(net loss) attributable to the parent.
On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Inc., in exchange for $31.25 per share cash. The remaining 20 percent of Soriano’s shares continued to trade for $30 both before and after Patterson’s acquisition.At January 1, Soriano’s book and fair values were as follows:In addition, Patterson assigned a $600,000 value to certain unpatented technologies recently developed by Soriano. These technologies were estimated to have a three-year remaining life.During the year, Soriano declared a $30,000 dividend for its shareholders. The companies reported the following revenues and expenses from their separate operations for the year ending December 31.a. What amount should Patterson recognize as the total value of the acquisition in its January 1 consolidated balance sheet?b. What valuation principle should Patterson use to report each of Soriano’s identifiable assets and liabilities in its January 1 consolidated balance sheet?c.…
On January 1, Fawaz Co. acquired 60% of the outstanding voting stock of Bambi for $26,000 cash consideration. The remaining 40% percent of Bambi had an acquisition date fair value of $6,500. On January 1, Bambi possessed 5-year life equipment that was undervalued in its books by $2,500. Bambi also had developed several secret formulas that Fawaz assessed at $5,000. These formulas, although not recorded on Bambi's financial records, were estimated to have a 20-year future life. Fawaz also determined that the inventory of Bambi is overvalued by $1,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statement is as follows: Fawaz (in dollars) Bambi (in dollars) Revenues (from sales and individuals) -30,000 -20,000 Cost of goods sold 14,000 8,000 Expenses 2,000 1,000 Net Income -14,000 -11,000 Retained earnings-1/1 -30,000 -15,000 Net Income -14,000 -11,000 Dividends Paid - 1,000 Retained Earnings-12/31 -44,000…