How much is the consolidated operating expenses for 2x19? 5. How much is the consolidated profit attributable to parent on December 31, 2x19? 6. How much is the non-controlling interest in profit of Subsidiary Company on December 31, 2x19?
Q: Amount to be shown as consolidated net income? Net income attributable to owners of the parent?…
A: The acquisition means the take over of a major portion of a business by another business to gain…
Q: Assuming the Parent entity elects to measure the NCI at proportionate basis, the computation of non-…
A: Non controlling interest (NCI) : A non-controlling interest, also known as a minority interest, is…
Q: Determine the amounts that Beckman should report in its year-end consolidated financial statements…
A: Non Controlling Income is the income earned through owning the minority stake that is less than 50…
Q: 4. How much is the consolidated operating expenses for 2x19? 5. How much is the consolidated profit…
A: Consolidated financial statements are the statements which are combined financial statements which…
Q: If RE on 1/1 for P is 170000 JD and for S is 100000 JD, consolidated net income is 88000 JD and…
A: These are the funds that remain with the company without its distribution.
Q: What percentage of the intercompany loss on plant asset sale should be used to adjust consolidated…
A: Introduction: To present the Consolidated financial statement, the effect of transactions between…
Q: S1: In a working paper elimination (in journal entry format) for the consolidated balance sheet of a…
A: A business which gains control over the other business is called an acquirer and the business which…
Q: Statement I: Gain on bargain purchase is included in the consolidated balance of sharehol equity at…
A: Business combination: Business combination refers to the process in which one business obtains…
Q: On 20 December 20x1, a Parent paid interest of $200,000 to its 80%-owned Subsidiary. The Subsidiary…
A: Journal entry is a primary entry that records the financial transactions initially. A journal entry…
Q: Statement 1: Current fair value of the investment adjusted for dividends received describes the…
A: The investment in a subsidiary in the separate financial statement is recognized at a cost or fair…
Q: Which one of the following statements is correct with regards to a 70%-owned subsidiary? 100% of…
A: Merger & Acquisition refers to the process of gaining ownership in the other organization by…
Q: 18 If RE on 1/1 for P is 170000 JD and for S is 100000 JD, consolidated net income is 58000 JD and…
A: Consolidation is a business process wherein two or more business entities are being merged into one…
Q: The noncontrolling interest share that appears in the consolidated income statement is computed as…
A: 1.Formula to calculate noncontrolling interest share that appears in the consolidated income…
Q: Consolidated net income for a parent company and its partially owned subsidiary is best defined as…
A: The entity which holds stock of more than 50% in other one is known as a parent or holding entity.…
Q: Which of the following transactions will affect both the consolidated net income attributable to the…
A: The question is related to the Consolidation.
Q: 6%-During year 3 ABC company agreed to sell a subsidiary. The sale was completed in March year 4 and…
A: Financial statements are the written records of the financial activities entered into by the…
Q: Q) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The non-controlling interest in consolidated income when the selling affiliate is an 80% owned…
A: A non-controlling revenue, otherwise called a minority premium, is a possession position wherein an…
Q: Parent Co. owns 80% of Subsidiary Co. During 2021, Parent Co. sold goods with a 40% gross profit to…
A: Following is the answer to the given question
Q: QUESTION 5 When it comes to consolidated net income and its allocation, I used the following graph…
A: Parent company is that company which has more than 50% shares of the other company, which is known…
Q: How is the portion of consolidated earnings to be assigned to the non-controlling interest in…
A:
Q: a. Determine the December 31, 2021, consolidated balance for each of the following accounts:…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Which of the following is true regarding consolidation of net income? A. Parent net income is…
A: Consolidated net income: It is the net income of the parent company plus the net income of the…
Q: t (in net assets) on December 31, 20x2, assuming that the net income and dividends of subsidiary…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: In the year an 80% owned subsidiary sells equipment to its parent company at a gain, the…
A: Answer: Option (D). Minus the net amount of unrealized gain on the intercompany sales is correct.
Q: Parent Corporation's current-year taxable income included $100,000 net income from operations and a…
A: Taxable income: Tax is levied on taxable income only.
Q: S1: Elimination entries for intercompany profit in the consolidation working papers for business…
A: Consolidated financial statements are those statements which are prepared for the combination of…
Q: In a business combination, the (1) direct acquisition, (2) indirect acquisition, and (3) share…
A: IFRS 3 deals with the accounting when açquirer take control of business.Business combination are…
Q: A and B formed a joint operation. The following were the transactions during the year: A B Total…
A: A business operation that is done by using the resources of two or more companies is term as joint…
Q: 4. What is the amount of pre-acquisition earnings on the acquisition date consolidated income…
A: pre-acquisition earnings osf subsidary Sales 60000 Less: cost of goods sold (12000) Less :…
Q: between the fair value of the investment in Set and the book value of the interest to identifiable…
A: schedule to allocate the difference between the fair value of an investment inset and the book…
Q: 1. Parent and its 80% owned Subsidiary report the following at December 31 of the current year:…
A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…
Q: S1: Under the acquisition method, if the fair values of identifiable net assets exceed the value…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Gain on bargain purchase
A: Gain on bargain purchase is included as goodwill under the assets' side of the consolidated balance…
Q: S1: Current fair value of the investment adjusted for dividends received describes the amount at…
A: Under the cost method of accounting for investments, the investment in subsidiary is recorded at…
Q: S1:Consolidated net income is equal to the parent’s income from its net income under its Income…
A: Consolidated financial statements are the financial statements of a group consisting of multiple…
Q: Statement I: Gain on bargain purchase is included in the consolidated balance of shareholders'…
A: Business Combination: In a business combination, the acquirer gets ownership of another company via…
Q: Compute for the consolidated net income attributable to parent shareholders' equity and amount of…
A: A Co. acquired 60% ordinary shares in B Co. on 2nd Jan' 2022. We are given the statement of…
Q: 1. Assuming there were no inventory transactions between the companies, what balance for inventory…
A: Option D - P210000 is correct Since the book value and the fair value of the assets/liabilities of…
Q: Statement 1: In a working paper elimination (in journal entry format) for the consolidated balance…
A: The question is multiple choice question amd related with Consolidated Financial Statements.…
Q: tatement I: Gain on bargain purchase is included in the consolidated balance of shareholders’ equity…
A: The answer is stated below:
Q: What is the amount of pre-acquisition earnings on the acquisition date consolidated income statement…
A: Pre- acquisition profits are the profits made by the companies before the acquisition of shares of…
Q: Prepare a consolidated balance sheet for Pen Corporation and Subsidiary at December 31, 2011. 2.…
A: Consolidated balance sheet is the balance sheet that involves the balances of the Parent company and…
Q: TRUE OR FALSE: Indicate whether the statements are true or false. 1. Assuming the parent acquired…
A: The question is related to the Consolidated Financial Statements. In Case of 100% Subsidairy the…
Q: How much is the non-controlling interest in profit of Subsidiary Company on December 31, 2x19?
A: Consolidated money statements area unit money statements of Associate in Nursing entity with…
Requirements:
4. How much is the consolidated operating expenses for 2x19?
5. How much is the consolidated profit attributable to parent on December 31, 2x19?
6. How much is the non-controlling interest in profit of Subsidiary Company on December 31, 2x19?
\
Step by step
Solved in 2 steps
- On January 1, 20x8, Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. During the year, Parent sold goods to Subsidiary for P150,000 at a 25% mark-up and in turn purchased P200,000 of Subsidiary’s goods which Subsidiary sold at a 20% mark-up. From the goods purchased, P50,000 remain in Parent’s books at the end of the year, while P20,000 remain in Subsidiary’s books at the end of the year. 30% of the undervalued inventory of Subsidiary still remain unsold by the end of 20x8. The following are…On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. The following are taken from the books of Parent and Subsidiary for 20x8: Determine the Non-Controlling Interest as of December 31, 20x8. Your answerOn January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. The following are taken from the books of Parent and Subsidiary for 20x8. 1. Determine the Non-Controlling Interest as of December 31, 20x8. 2.
- On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. The following are taken from the books of Parent and Subsidiary for 20x8. 1) From the given data, determine the total assets as of December 31, 20x1. 2) From the given data, assuming the retained earning of Subsidiary on December 31, 20x11 is P350,000, determine the non-controlling interest to be reported in the consolidated financial statements on December 31, 20x11 assuming no changes to Subsidiary company’s ordinary…From the given data, determine the NON-CONTROLLING INTEREST on December 31, 20x8. On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary’s Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. During the year, Parent sold goods to Subsidiary for P150,000 at a 25% mark-up and in turn purchased P200,000 of Subsidiary’s goods which Subsidiary sold at a 20% mark-up. From the goods purchased, P50,000 remain in Parent’s books at the end of the year, while P20,000 remain in Subsidiary’s books at the end of the year. 30% of the undervalued…PARENT Corporation acquired 80% of the outstanding shares of SUBSIDIARY Company on June 1, 2022 for P3,517,500. SUBSIDIARY Company’s stockholder’s equity components at the end of this year are as follows; Ordinary shares, P100 par, P1,500,000. Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of SUBSIDIARY were fairly valued, except for inventories, which are overstated by P66,000 and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years. Stockholder’s equity of PARENT on January 1, 2022 is composed of Ordinary shares P4,500,000, Share premium P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down by P85,350 at year-end. Net Income for the first year of parent is P450,000 and the net income of subsidiary from the date of acquisition is P255,000. Dividends declared at the end of the year amounted to P120,000 and P90,000 for…
- Parent Corporation acquired 80% of the outstanding shares of Subsidiary Company on June 1, 2021 for P3,517,500. Subsidiary Company’s stockholder’s equity components at the end of this year are as follows: Ordinary shares, P100 par, P1,500,000, Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of Subsidiary Company were fairly valued, except for inventories, which are overstated by P66,000, and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years. Stockholder’s equity of Parent Corporation on January 1, 2021 is composed of Ordinary shares P4,500,000, Share premium P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down by P85,350 at year end. Net Income for the first year of parent is P450,000 and the net income of Subsidiary Company from the date of acquisition is P255,000. Dividends declared at the end of the year…On 1 January 20X9, JB Enterprises acquired 70 per cent of the shares of Good Company. The separate condensed statements of financial position of JB Enterprises and of Good Company immediately after the acquisition appeared as shown below: (all amounts in €) JB Good Company Assets Property, plant and equipment (net) 18.750.000 2.600.000 Investment in Good Company 3.600.000 - Inventories 1.000.000 740.000 Cash 13.550.000 560.000 Trade and other receivables 4.400.000 660.000 41.300.000 4.560.000 Equity and Liabilities Share capital 10.000.000 2.000.000 Reserves 16.200.000 1.600.000 Profit for the year 20X4 1.600.000 240.000 Provisions 100.000 250.000 Current liabilities 13.400.000 470.000 41.300.000 4.560.000 Additional information (at acquisition…On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the Net income attributable to parents' shareholders'…
- On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had aremaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the carrying value of Property and Equipment?On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the Non-controlling interest in the net income of…On January 1, 20x1, Pine Corp acquired 75% interest in Sine Inc. for P2,400,000. On that date Sine Ordinary share and Retained earnings were P2,000,000 and P1,000,000. The non-controlling interest on the date of acquisition was P800,000. The assets and liabilities of Sine’s book values approximates their fair values except for the inventories and equipment which were undervalued by P30,000 and P50,000, respectively. The equipment has a remaining estimated life of five years. On October 1, 20x1, Sine Inc. sold equipment to Pine Corp. costing P300,000 with accumulated depreciation of P120,000 for P200,000. The remaining useful life of equipment was 4 years. In year 20x1, the goodwill is impaired by P5,000. On April 30, 20x2, Pine Corp. sold equipment to Sine Inc, costing P500,000 with accumulated depreciation P100,000 for P300,000. The remaining estimated life of equipment was five years. The following information were extracted from the separate financial statements of Pine and Sine for…