Company P purchased 70% stock in Company S on Jan 1, 20X1 for S170,000. For the year 20X1, Company S reported a net income of $100,000 and paid dividends of $40,000. At year-end, investment account in the books of Company P had a fair market value of $175,000. Under the fair value method, The unrealized loss will be credited with $25,000. The unrealized loss will be debited with $25,000. The unrealized gain will be credited with $5000. The extraordinary loss will be debited with $25,000.

Q: Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a…

A: Number of bonus shares = 30000 x 20%= 6000 shares Number of shares as on December 31, Year 3 =…

Q: On January 2, 2020, P Company purchased 80% of the outstanding shares of S Company by paying…

A: The net income attributable to the shareholders of the parent entity is determined by deducting the…

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: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: On January 1, 2021, TAPANG Company acquired 5,000 shares of FVOCI securities of AKO Company at…

A: An investment made as FVOCI (Fair value through Other Comprehensive Income) is recorded at the fair…

Q: the amount paid, how much is attributable to goodwill?

A: Goodwill is an intangible asset that can't be touched but increases the image of the company. The…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: Calculation of investment in subsidiary account -

Q: On January 1, 2020, Pail Corporation acquired 75 percent of Sand Company's common stock for $525,000…

A: The question is related to Consolidated Financial Statements.The details of dividend paid by Parent…

Q: On January 1 of the current year, Yellow Company purchased 40% of the outstanding ordinary shares of…

A: Reported income: The investor's portion of the joint venture's earnings and losses is included in…

Q: At the beginning of the current year, Big Company purchased 25% of the outstanding ordinary shares…

A: Investments in company for less than 50% is accounted using equity method. Under this method…

Q: January 1, 2022, ABC Company purchased 70% of ordinary shares of XYZ Company at a price of…

A: Consolidation of Holdings by one company of other company, it is given that ABC co. purchased the…

Q: On January 1, 20X4, ABC Company acquired 100,000 ordinary shares of XYZ Company for P5,000,000. At…

A:

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: On 01.01.20x0, P company purchased outstanding shares of S company = 80% Purchase consideration =…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: Non-controlling Interest-: A Non-controlling Interest, which is also understood as a minority…

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

A: Journal entries are those entries which are recorded in the journal book at the time when-ever a…

Q: On January 2, 2021, X Co. acquired all the ordinary share of Y Co. for P2,060,000. On that date, Y…

A: Goodwill is calculated when Purchase consideration paid to acquire a company (acquiree) is greater…

Q: n January 1, 20X1, Como Company purchased 45% of the outstanding common shares of the Lite Company…

A: Inventory includes both raw materials used in production and finished goods that are ready for sale.…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: Consolidated financial statements are the financial statements of a group consisting of multiple…

Q: On January 1 of the current year, Yellow Company purchased 40% of the outstanding ordinary shares of…

A: The net investment income of the purchase of shares in any company is the share of the purchasing…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: Dividend income refers to the amount that is earned from the investment made in a company. Whenever…

Q: this date, the c

A: Introduction Investments in company for less than 50% is accounted using equity method. Under this…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: consolidated

A: 8.  1040000

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A: At the time of business combination, if the fair value of an asset exceeds its carrying amount, the…

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Q: On January 1, Year 1, Big Corporation acquired 40% interest in Small Company for $300,000. At the…

A: Journal entry (JE) refers to the transaction recording in the company books or the entity books or…

Q: On January 2, 2022, S Company acquired 80% of the stocks of L Company for P2,000,000. On this date,…

A: If intercompany transfer of stock is remained as unsold on date of consolidation,then unrealized…

Q: On January 1, 20X1, Payne Corp. purchased 70% of Shayne Corp.'s $10 par common stock for $900,000.…

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A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: On January 1, 2020, Churl Company paid $1,700,000 for a 40% stake in Flip Company. The Flip…

A: Your investment in the subsidiary will be recognized using the equity method or the fair value…

Q: Ute sold $20

A: Non-controlling interest refers to when a company has no control over the decision of the shares not…

Q: On May 1, 2021, P Corp. purchased 75% of S Co.’s P10 par ordinary shares for P990,000. On this date,…

A: Solution Goodwill is an intangible asset. It is generated by having good name , reputation in the…

Q: On January 2, 2022, S Company acquired 80% of the stocks of L Company for P2,000,000. On this date,…

A: Cost of inventory that remained unsold =  $50,000×20% = $10,000

Q: On May 1, 2021, P Corp. purchased 75% of S Co.’s P10 par ordinary shares for P990,000. On this date,…

A: Non-controlling interest: Non controlling interest is the share of ownership of subsidiary company.…

Q: Marigold Corporation purchased 440 shares of Sherman Inc. common stock for $14,400 (Marigold does…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On April 1, 2019, BBB Company purchased 40% of the outstanding ordinary shares of Clarke Company for…

A: Note: It is assume that company preparing their financial account according calendar year.

Q: Player Corporation purchased 100 percent of Scout Company's common stock on January 1, 20X5, and…

A: Under the Equity method, income and loss of the Investee Company is adjusted in the value of…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash.…

A: given   On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash…

Q: On July 1, 2020 Blush Company purchased 20% of the when the fair value of net assets was…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: What amount of loss should Windy Co. recognize on Dec. 31, 20x1 if the shares were classified as:

A: If classified as FVPL:  Loss to be recognised is Investment cost  Less: Fair value of shares  If…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: Consolidated financial statements are the financial statements of a group consisting of multiple…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: The consolidated retained earnings indicate the accumulated earnings of the parent company in the…

Q: In July 1, 20X1, CBC acquired 25% of the outstanding ordinary shares of Yellow Corp at a total cost…

A: Here discuss about the details of the carrying value of the investment account after the acquisition…

Q: Tamarisk Corporation purchased 380 shares of Sherman Inc. common stock for $13,300 (Tamarisk does…

A: When investment is made in a company on which business does not have significant influence that…

Q: On January 1, 20X9, Ute Company acquired 70 percent of Cougar Company's common shares at the…

A: Non-controlling interest refers to when a company has no control over the decision of the shares not…

Q: On January 1, 20x0, P Company purchased 80 percent of the outstanding shares of S Company by paying…

A: The consolidated retained earnings indicate the accumulated earnings of the parent company in the…

Q: On January 2, 2020, Pat Corporation acquired 75% of the outstanding common stock of Sol Company for…

A: Consolidated financial statements are the financial statements of a group consisting of multiple…

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.