gain on acquisition
Q: On January 1, 2015 P company acquired 80% interest in S Company for P2,000,000 cash. The…
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Q: heet on the date of acquisition: Assets $ Liabilities $ Accounts receivable 90,000 Accounts payable…
A:
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Q: On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash.…
A: Net Identifiable assets and liabilities as on on January 1, 2017 = Sum of Market value of all assets…
Q: On January 1, 2021, Parent Co. acquired 80% of Subsidiary Inc.’s outstanding stocks for P1,600,000…
A: A consolidated balance sheet is a financial statement that reflects the financial status of a parent…
Q: January 1, 2017, ITC Co. acquired 80% of ESP Inc.'s outstanding stocks for P1,600,000 cash. ESP…
A: Goodwill = purchase consideration paid + NCI at fair value - Net assets
Q: On January 1, 2015, Talbot Company acquires 90% of the outstanding stock of Lego Company for…
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Q: On January 1, 2021, Parent Co. acquired 80% of Subsidiary Inc's outstanding stocks for P1,600,000…
A: Total Assets = Parents asset after consolidation + Fair value of identifiable assets acquired +…
Q: On January 1, 2016, Parent Company purchased 100% of the common stock of Subsidiary Company for…
A: Value analysis or fair value analysis schedule is the schedule prepared to analyze whether the price…
Q: On January 1, 2017, Peach, Inc. purchased 40% of the common stock of Apple Company for $61,000. At…
A: Given information: Peach Inc purchased 40% of Apple Company Common stock. Apple Company…
Q: On January 1, 2021, Parent Co. acquired 80% of Subsidiary Inc.'s outstanding stocks for P1,600,000…
A: Assets balance of Parent company = xxx Add: Goodwill = xx…
Q: On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash.…
A: Fair value of net assets = Assets - Liabilities =…
Q: Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December…
A: a. Prepare schedules for acquisition-date fair value allocation and amortizations for Adams’s…
Q: On January 1, 2015 P company acquired 80% interest in S Company for P2,000,000 cash. The…
A: A business combination is a transaction in which a buyer takes over control of another company (the…
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A: Impairment Loss- An impairment loss is defined as a decline in an asset's carrying value caused by a…
Q: AAA Inc. acquired on January 1, 2016 all the issued and outstanding common shares of BBB Inc. for…
A:
Q: On January 1, 2017, Bright Company acquired 80% of Animo Company's common stock for 280,000 cash. At…
A: Controlling interest in a company represents the ownership stakes of the investor company by having…
Q: On January 1, 2015, Artic Company acquires an 80% interest in Calco Company for $400,000. On the…
A:
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
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Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
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Q: Smith Inc. acquired all of the common stock that was outstanding of Williams Company on 1/1/15. As a…
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Q: How much is the non- controlling interest in net assets on December 31, 2016?
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Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing…
A: Hence, option 3rd and 4th is correct
Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…
A: All amounts are in (P).
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A: Usually, consolidation of companies takes place to make the existing companies stronger.
Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…
A: Working note: Computation of goodwill or gain from bargain purchase:
Q: Anthem Co. acquired 60% of the outstanding shares of Bethel Co. on January 2, 2021. Anthem Co.…
A: Consolidation is the process of uniting two or more firms' assets, liabilities, and other financial…
Q: Problems 7 and 8 relate to the following: On January 1, 2016, Pride Corporation purchased 90 percent…
A: Given information is: On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding…
Q: On January 1, 2018, WONG NOODLES Corporation acquired the net assets of Natasha, Inc., by issuing…
A: The amount of assets remaining after all liabilities have been paid is referred to as stockholders'…
Q: On January 1, 2015 P company acquired 80% interest in S Company for P2,000,000 cash. The…
A: calculation of value of goodwill are as follows
Q: McCoy has the following account balances as of December 31, 2020 before an acquisition transaction…
A: Consolidation means the combined financial statements of the Parent company with all of its…
Q: Problems 7 and 8 relate to the following: On January 1, 2016, Pride Corporation purchased 90 percent…
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Q: 3) On January 1, 2013, Pendal Corporation purchased 25% of the outstanding common stock of Sedda…
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Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…
A: Goodwill is an intangible asset associated with the purchase of a company by another. Goodwill is…
Q: On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash.…
A: Gain on acquisition is the difference between the purchase price and the fair value of assets…
Q: Grafton Co. purchased 2,000 of the 10,000 outstanding voting shares of Prince Ltd. on January 2,…
A:
Q: 18, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Co ce sheet at the…
A: Impairment loss Impairment loss refers to the loss in the value of asset when the recoverable…
Q: Mercedes Co. acquired all of the common stock of Tesla Co. on January 1, 2018. As of that date,…
A: Solution A journal is a company's official book in which all business transaction are recorded in…
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On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows:
Inventory |
120,000 |
Land |
240,000 |
|
10,000 |
Liabilities |
30,000 |
Common Stock, P100 par |
240,000 |
|
100,000 |
At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values.
How much is the gain on acquisition?
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- Parilo Company acquired 170,000 of Makofske Co., 5% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 2016, Parilo Company sold 50,000 of the bonds for 96. Journalize entries to record the following: a. The initial acquisition of the bonds on May 1. b. The semiannual interest received on November 1. c. The sale of the bonds on November 1. d. The accrual of 1,000 interest on December 31, 2016.9 On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. What amount shall be assigned to the minority interest on January 1, 2017? Group of answer choices 66,000 Cannot be determined 56,250 68,000On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. What amount shall be assigned to the minority interest on January 1, 2017? Group of answer choices Cannot be determined 66,000 56,250 68,000 PreviousNext
- On January 1, 2017, ITC Co. acquired 80% of ESP Inc.'s outstanding stocks for P1,600,000 cash. ESP Inc.'s balance sheet shows P3,000,000 identifiable assets and P1,800,000 liabilities. All assets and liabilities of Setter are fairly valued, except for an undervalued equipment. The stock acquisition resulted to a goodwill of P700,000. Assume ITC had P5,000,000 total assets prior to the said transaction. NCI is measured at fair value. How much is the total assets in the consolidated balance sheet after the stock acquisition?On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. How much is the gain on acquisition?10 On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? Group of answer choices No entry P40,000 Dr. P1,035,000 Cr. P1,060,000 Cr.
- On January 1, 2014, Punch Corporation purchased 100% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date (after the acquisition) are given below: Punch Soopy Cash $34,000 $206,000 A/R 144,000 26,000 Inventory 132,000 38,000 Land 68,000 32,000 Plant assets 460,000 240,000 Investment in Soopy 392,000 Accounts payable $206,000 $142,000 Capital stock 800,000 300,000…On 30 June 2017, P Co pays £50,000 cash to acquire 70% of the ordinary shares of S Co. The draft statements of financial position of these two companies as at 30 June 2018 are below: Assets P Co £ S Co £ Property, plant and equipment 400,000 55,000 Investment in S 50,000 Total Non-current Assets 450,000 55,000 Receivables 50,000 5,000 Inventories 50,000 5,000 Bank and Cash 250,000 15,000 Current Assets 350,000 25,000 Total Assets 800,000 80,000 Equity Ordinary Share Capital (£1 shares) 500,000 50,000 Retained Earnings 200,000 10,000 Liabilities 700,000 60,000 Trade Payables 100,000 20,000 Total Equity and Liabilities 800,000 80,000 The following information is also available: The fair value of the property, plant and equipment of S Co on 30 June 2018is £60,000 as…On January 1, 2016, Prima Company issued 1,500 of its $20 par value common shares with a fair value of $50 per share in exchange for 2,000 outstanding common shares of Swatch Company in a purchase transaction. Registration costs amounted to $1,700 paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Prima Swatch Cash $ 73,000 $13,000 Accounts Receivable (net) 95,000 19,000 Inventory 58,000 25,000 Plant and Equipment (net) 95,000 43,000 Land 26,000 20,000 Total Assets $ 347,000 $ 120,000 Accounts Payable $ 66,000 16,000 Notes Payable 82,000 21,000 Common Stock, $20 par value 100,000 40,000 Other Contributed Capital 60,000 24,000 Retained Earnings 39,000 19,000 Total Liabilities and Equities…