House Plc owns 80% of the issued share capital of Window Plc and 25% of the issued share capital of Door Plc. The revenues for the year are as follows: House Plc GH¢1,500,000 Window Plc GH¢1,000,000 Door Plc GH¢160,000 What amount for revenue should appear in the consolidated statement of profit or loss for the year?
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House Plc owns 80% of the issued share capital of Window Plc and 25% of the issued share
capital of Door Plc. The revenues for the year are as follows:
House Plc GH¢1,500,000
Window Plc GH¢1,000,000
Door Plc GH¢160,000
What amount for revenue should appear in the consolidated statement of profit or loss for the year?
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- Hot Plc owns 80% of the issued share capital of Warm Plc and 40% of the issued share capital of Cold Plc. In the individual accounts, the income tax expenses for the year are as follows:3Hot Plc GH¢20,000Warm Plc GH¢18,000Cold Plc GH¢10,000At what amount should the income tax expense appear in the consolidated statement of profit or loss? [Note: The share of profit of Associate is shown in the statement of profit or loss at a figure net of tax]The Passers Co. acquired 70% of the net assets of Failures Co. for P1,100,000. The assets of Failures Co. have a book value of P1,200,000 and a fair market value of P1,300,000; its liabilities are P200,000. What is the amount of minority interest in the stockholders’ equity section of the consolidated balance sheet?On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost of P4,000,000. On that date, Malate had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 20X8, Banawe had income of P1,400,000 form its separate operations and paid dividends of P750,000. Malate on the other hand reported income of P325,000 and paid dividends of P150,000 on December 1, 20X8. All the assets and liabilities of Malate have book values equal to their fair market values. Assume all income was earned evenly throughout the year except for an intercompany transaction on October 1, 20X8 when Banawe purchased a machinery from Malate for P500,000. The book value of the machinery on that date amounted to P600,000 and accumulated depreciation of P400,000 and is already reflected in the income of Malate indicated above. The machinery is expected to have a remaining useful life of 5 years from the date of sale. In the December 31, 20X8 consolidated financial…
- On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost of P4,000,000. On that date, Malate had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 20X8, Banawe had income of P1,400,000 form its separate operations and paid dividends of P750,000. Malate on the other hand reported income of P325,000 and paid dividends of P150,000 on December 1, 20X8. All the assets and liabilities of Malate have book values equal to their fair market values. Assume all income was earned evenly throughout the year except for an intercompany transaction on October 1, 20X8 when Banawe purchased a machinery from Malate for P500,000. The book value of the machinery on that date amounted to P600,000 and accumulated depreciation of P400,000 and is already reflected in the income of Malate indicated above. The machinery is expected to have a remaining useful life of 5 years from the date of sale. In the December 31, 20X8 consolidated financial…On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost of P4,000,000. On that date, Malate had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 20X8, Banawe had income of P1,400,000 form its separate operations and paid dividends of P750,000. Malate on the other hand reported income of P325,000 and paid dividends of P150,000 on December 1, 20X8. All the assets and liabilities of Malate have book values equal to their fair market values. Assume all income was earned evenly throughout the year except for an intercompany transaction on October 1, 20X8 when Banawe purchased a machinery from Malate for P500,000. The book value of the machinery on that date amounted to P600,000 and accumulated depreciation of P400,000 and is already reflected in the income of Malate indicated above. The machinery is expected to have a remaining useful life of 5 years from the date of sale. In the December 31, 20X8 consolidated financial…Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of P100,000. The company holds net assets of P2,400,000 on January 1, 20x1. Ón that date, Jared Company purchases 40% of the outstanding stock for P1,200,000, which gives it the ability to have joint control with Glassman Company over Shaun. At the purchase date, the excess of Jared's cost over its proportionate share of Shaun's book value was assigned to goodwill. REQUIRED: 5. How much is the net investment income each year? 6. On December 31, 20x2, what is the investment in Shaun Company balance (equity method) in Jared's financial records? Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of P100,000. The company holds net assets of P2,400,000 on January 1, 20x1. Ón that date, Jared Company purchases 40% of the outstanding stock for P1,200,000, which gives it the ability to have joint control with Glassman Company over Shaun. At the purchase date, the…
- On July 1, 20x6 TRUST Company purchased 80% of the outstanding shares of DUREX Company at a cost of Pl,600,000. on that date, DUREX had P1,000,000 of capital stock and P1,400,0a00 of retained earnings. For 20x6, TRUST had income of P560,000 from its separate operations and paid dividends of P300,000. For 20x6, DUREX reported income of P130,000 and paid dividends of P60,000. All the assets and liabilities of DUREX have book values equal to their respective fair market values. Assume income was earned evenly throughout the year except for the intercompany transaction on October 1. On October 1, TRUST purchased an equipment from DUREX for P200,000. The book value of the equipment on that date was P240,000. The loss of P40,000 is reflected in the income of DUREX indicated above. The equipment is expected to have a useful life of 5 years from the date of sale. In the December 31, 20x6 consolidated statement of financial position, how much is the consolidated net income attributable to the…Promise corp owns 70% of Brown corp and 25% of Grower corp. In addition, Brown owns 40% of Grower stocks. In 2021, Promise, Brown and Grower reported net income of $90,000, $60,000 and $40,000 and paid dividends of $45,000, $30,000 and $10,000 respectively. Instructions: 1. What amount of consolidated net income will Promise report for 2021. 2. What amount of income will be assigned to noncontrolling interest in 2021. 3. What amount of dividends will be assigned to noncontrolling interest in 2021.The following separate income statements are for Burks Company and its 80 percent–owned subsidiary, Foreman Company: Burks Foreman Revenues $ (400,000 ) $ (300,000 ) Expenses 290,000 225,000 Gain on sale of equipment 0 (15,000 ) Equity earnings of subsidiary (52,000 ) 0 Net income $ (162,000 ) $ (90,000 ) Outstanding common shares 50,000 30,000 Additional Information Amortization expense resulting from Foreman’s excess acquisition-date fair value is $25,000 per year. Burks has convertible preferred stock outstanding. Each of these 5,000 shares is paid a dividend of $4 per year. Each share can be converted into four shares of common stock. Stock warrants to buy 10,000 shares of Foreman are also outstanding. For $20, each warrant can be converted into a share of Foreman’s common stock. The fair value of this stock is $25 throughout the year. Burks owns none of these warrants. Foreman has convertible bonds payable that…
- At the beginning of the current year, WWW Company purchased 10% of RRR Company's outstanding ordinary shares for P4,000,000. WWW Company is the largest single shareholder in RRR and WWW's officers are a majority of RRR's board of directors. The investee reported net income of P5,000,000 for the current year and paid cash dividend of P1,500,000. What amount should be reported as investment in RRR Company at year-end?Calculate share of profit of the members of the parent entity and of minority interests if Alpha Ltd acquired 80% of the shares in X Ltd and 70% of the shares in Y Ltd. The profits recovered by each of the companies of the current year are as follows Net Profit for the current year(m) Alpha Ltd 100 X Ltd 40 Y Ltd -10 A.Profit for members of parent entity is $125m and profit for minority interest is $15m. B. Profit for members of parent entity is $100m and profit for minority interest interest is $30m. C. Profit for members of parent entity is $125m and profit for minority interest is $25m. D. Profit for members of parent entity is $130m and profit for minority interest is $0. E. None of the options provided. 2.The individual discount model is considered amongst analysts as most appropriate for share valuation under which of the following situations: A.When valuing shares from the perspective of a small shareholder and…On January 1, 20X1, P Company (PC) purchased 80% of the outstanding shares of S Company (SC) at thecost of P700,000. On that date, SC had P300,000 and P500,000 capital stock and retained earnings,respectively. The non-controlling interest (NCI) is measured on a fair-value basis.For 20X1, PC had a comprehensive income (CI) of P300,000 and paid dividends of P100,000. On the otherhand, SC reported a CI of P150,000 and paid dividends of P50,000. All of the assets and liabilities of SCompany had book values that approximately equal to their respective market values.On December 31, 20X1, PC sold a piece of equipment with a book value of P30,000 to SC for P25,000.The gain on the sale is included in the CI of PC indicated above. The equipment has a 10-year useful life.It has been used for the past five (5) years before the date of acquisition. Required:a. Prepare the journal entries that both companies should make for the year 20X1.b. Allocate the consolidated comprehensive income at the end…