goodwill (gain on bargain purchase)
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…
A: a.Fair Value of Consideration Given 1.Purchase consideration paid in cash-20,00,000 2.To be paid in…
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A: The asset in question is Patent which is an intangible asset to the organisation.
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Q: On January 1, 20x1, AAA Co. acquired all of the identifiable assets and assumed all of the…
A: The transaction costs concerning the business combination are charged to the profit and loss account…
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…
A: SOLUTION GOODWILL IS AN INTANGIBLE ASSET THAT ACCOUNTS FOR THE EXCESS PURCHASE PRICE OF ANOTHER…
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A: Answer: As per given data - Rivendell paid finder’s fee P 40,000.00, accountant’s fee (Advisory) of…
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A: Under the full goodwill method, the goodwill is calculated by using the fair value of…
Q: On May 1, 2021, Jazzie Co. agreed to sell the assets of its Mister Division to Shawna Inc. for $80…
A: SOLUTION- LOSS FROM DISCONTINUED OPERATIONS IS A LINE ITEM IN INCOME STATEMENT OF A COMPANY BELOW…
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A: Journal entries should not be utilized to record regular transactions such as customer billings and…
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A: Net identifiable assets: Net identifiable assets include both tangible and intangible assets at the…
Q: On September 1, 20Y8, Vernon Corporation acquired Barlow Enterprises for a cash payment of…
A: Purchase Consideration 2,300,000 Less: Net Assets of Barlow Enterprises 1,500,000 Goodwill…
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A: Book value of the goodwill on December 31, 20Y9 = Goodwill premium on January 1, 20Y3
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A: a. Prepare the journal entry will be passed to reflect the transfers:
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A: Acquisition costs are the sum of the costs incurred by the business in acquiring a new client or…
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A: SOLUTION FAIR VALUE OF ASSET IS THE AMOUNT PAID IN A TRANSACTION BETWEEN PARTICIPANTS IF IT SOLD IN…
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A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…
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A: Depreciation expenditure is the sum depreciated for a single month, whereas accumulated depreciation…
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A:
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A: It is pertinent to note that while determining goodwill or gain on purchase price on the date of…
Q: On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $110,000 in…
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Q: On March 1, 2010, JJ Corporation acquired for P 5,600,000 all of the assets of ZZ Company. On this…
A: The goodwill is calculated by deducting the fair value of the assets from the acquisition price.
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A: a. Calculate gain on sale of equipment: Gain on sale of equipment = $200,000 - $110,000 Gain on sale…
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A: Long term assets which the company plans to dispose in future are known as held for sale. Such…
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A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
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A: Given: Information related to George Weston bluenotes company. Total Assets…
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A: Reportable Income: Payments made to or on behalf of a person that must be "reported" to the…
Q: On September 1, 2020, Flint Corporation acquired Tamarisk Enterprises for a cash payment of…
A: Goodwill is an intangible asset of the company which arises when the payment made for acquiring the…
Q: On May 28, 2018, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc.…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
On January 1, 20x1, AAA Co. acquired all of the identifiable assets and assumed all of the liabilities of BBB, Inc. by paying cash of ₱2,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of ₱3,200,000 and ₱1,800,000, respectively.
AAA Co. has estimated restructuring provisions of ₱400,000 representing costs of exiting the activity of BBB, costs of terminating employees of BBB, and costs of relocating the terminated employees.
Requirement: Compute for the
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- 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 ₱4,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of ₱6,400,000 and ₱3,600,000, respectively.On January 1, 20x1, AAA Co. acquired all of the identifiable assets and assumed all of the liabilities of BBB, Inc. On this date, the identifiable assets acquired and liabilities assumed have fair values of₱3,200,000 and ₱1,800,000, respectively. AAA incurred the following acquisition-related costs: legal fees, ₱20,000, due diligence costs, ₱200,000,and general administrative costs of maintaining an internal acquisitions department, ₱40,000. Case #1: As consideration for the business combination, AAA Co. transferred 8,000 of its own equity instruments with par value per share of ₱200 and fair value per share of ₱250 to BBB’s former owners.Costs of registering the shares amounted to ₱80,000. How much is the goodwill (gain on bargain purchase) on the business combination? Case #2: As consideration for the business combination, AAA Co. issued bonds with face amount and fair value of ₱2,000,000. Transaction costs incurred in issuing the bonds amounted to ₱100,000. Howmuch is the goodwill…On September 1, 20Y8, Vernon Corporation acquired Barlow Enterprises for a cash payment of $2,300,000. At the time of acquisition, Barlow's balance sheet showed assets of $1,800,000, liabilities of $600,000, and owner's equity of $1,200,000. A recent appraisal indicated that the fair value of Barlow's assets is estimated to be $2,100,000. How much goodwill was generated due to this acquisition? What is the net dollar value impact this transaction had on assets? What is the net dollar value impact this transaction had on liabilities? What is the net dollar value impact this transaction had on equity?
- On January 1, 2021, ABC Company acquired all of the assets and assumed all of the liabilities of XYZ, Inc. As of this date, the carrying amounts and fair values of the assets and liabilities of XYZ acquired by ABC are shown below: (see image) On the negotiation for the business combination, ABC Co. incurred transaction costs amounting to ₱400,000 for legal, accounting, and consultancy fees. If ABC Co. paid ₱6,000,000 cash as consideration for the assets and liabilities of ABC, Inc., how much is the goodwill on the business combination? USE PROPER ACCOUNTING FORM.On January 1, 2021, ABC Company acquired all of the assets and assumed all of the liabilities of XYZ, Inc. As of this date, the carrying amounts and fair values of the assets and liabilities of XYZ acquired by ABC are shown below: (see image) On the negotiation for the business combination, ABC Co. incurred transaction costs amounting to ₱400,000 for legal, accounting, and consultancy fees. If ABC Co. paid ₱6,000,000 cash as consideration for the assets and liabilities of ABC, Inc., how much is the goodwill on the business combination?On January 1, 20x4, Bristol Company acquired 80% of Animation Company's common stockfor Php140,000 cash. At that date, Animation reported common stock outstandingPhp100,000 and retained earnings of Php50,000, and the fair value of the non-controllinginterest was Php35,000. The book values and fair values of Animation's assets and liabilitieswere equal, except for other intangible assets which had a fair value Php25,000 greater thanbook value and an 8-year remaining life. Animation reported the following data for 20x4 and20x5:YearNet IncomeComprehensiveIncome20x4 Php12,500.00 Php5,000.0020x517.500.0022,500.00DividendspaidPhp2,500.005.000.00In December 31, 20x4, Bristol's retained earnings is Php120,000, and reported net income ofPhp50,000 and paid dividends of Php15,000 both in 2014 and 2015.What is the consolidated comprehensive income reported for 20x4?
- At the beginning of the current year, Boyet Company bought 40% of Aubrey Company’s outstanding ordinary shares for P3,500,000. The company also paid P700,000 to a business broker who helped find a suitable business and negotiated the purchase. The carrying amount of Aubrey Company’s net assets at the purchase date totaled P9,000,000. The difference was attributed to plant which had a carrying amount of P1,100,000 and a fair value of P2,000,000 and to inventory which had a carrying amount of P250,000 and a fair value of P350,000. The plant has 18-year life. All inventory was sold during the current year. During the current year, the investee reported net income of P1,200,000 and paid a P200,000 cash dividend. Of the amount paid for the investment, how much is attributable to goodwill? How much is the amortization of purchase differential during the current year? What amount should be reported as investment income for the current year? What is the carrying amount of the investment in…On May 1, 2021, Jazzie Co. agreed to sell the assets of its Mister Division to Shawna Inc. for $80 million. The sale was completed on December 31, 2021. Jazzie’s year ends on December 31st. The following additional facts pertain to the transaction: The Mister Division qualifies as a component of an entity as defined by GAAP. Mister's net assets totaled $48 million on Jazzie's books at the time of the sale. Mister incurred a pre-tax operating loss of $10 million in 2021. Jazzie’s income tax rate is 40%. Suppose that the Mister Division's assets had not been sold by December 31, 2021, but were considered held for sale. Assume that the fair value of these assets at December 31 was $80 million. In their 2021 income statement, Jazzie Co. would report for discontinued operations: Group of answer choices a $6 million after tax loss. a $10 million after tax loss after tax income of $13.2 million. after tax income of $22 million.On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had originally cost $180,000 but had a book value of only $110,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman's equipment of book value $200,000 and Brannigan's equipment of book value $150,000. Ackerman reported $300,000 in net income in 2021 (not including any investment income) while Brannigan reported $98,000. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $4,000 per year. A) What is consolidated equipment balance?
- On January 1, 2020, B Company acquired 80% of A Company’s common stock for Php280,000 cash. At that date, A reported common stock outstanding of Php200,000 and retained earnings of Php100,000, and the fair value of the non-controlling interest was Php70,000. The book values and fair values of A’s assets and liabilities were equal, except for intangible assets which has a fair value of Php50,000 greater than book value and an 8-year remaining life. A reported the following data for 2020 and 2021. Year Net Income Comprehensive Income Dividends Paid 2020 25,000 30,000 5,000 2021 35,000 45,000 10,000 B reported separate net income from own operations of Php100,000 and paid dividends of Php30,000 for both years. What is the amount of consolidated comprehensive income reported for 2020?On May 28, 2018, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc. for$420 million. The fair value of Harman’s identifiable tangible and intangible assets totaled $512 million, and thefair value of liabilities assumed by Pesky was $150 million.Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2018. Management has provided the following information:Fair value of Harman, Inc. $400 millionFair value of Harman’s net assets (excluding goodwill) 370 millionBook value of Harman’s net assets (including goodwill) 410 millionRequired:1. Determine the amount of goodwill that resulted from the Harman acquisition.2. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2018, if any.3. If an impairment loss is required, prepare the journal entry to record the loss.This year, Sigma, Incorporated generated $612,000 income from its routine businessoperations. In addition, the corporation sold the following assets, all of which wereheld for more than 12 months:Initial BasisAccumulatedDepreciation* Sale PriceMarketable securities $ 144,000 $ 0 $ 64,000Production equipment 93,000 76,000 30,000Business realty:Land 165,000 0 180,000Building 200,000 58,300 210,000*Through date of sale.Required:a. Compute Sigma’s taxable income assuming that it used the straight-line method tocalculate depreciation on the building and has no nonrecaptured Section 1231losses.b. Recompute taxable income assuming that Sigma sold the securities for $150,000rather than $64,000.