On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash consideration. The remaining40 percent of SS had an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5-year life) that wasundervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at P50,000. Thesesformulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determinedthat the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As ofDecember 31, the financial statements appeared as follows:ВВSSRevenues (from sales and dividends)Cost of goods soldP (300, 000) P (200, 000)140, 00020, 00080, 00010, 000ExpensesNet IncomeP (140, 000) P (110, 000)Retained earnings 1/1P (300, 000) P (150, 000)(110, 000)10,000Net Income(140, 000)Dividends paidRetained earnings 12/31-0-P (440, 000)P (250, 000)Cash and ReceivablesP 210, 000Р90, 000110, 000Inventory150, 000260, 000440, 000P 1,060, 000Investment in SS-0-Equipment (net)Total Assets300, 000P500, 000LiabilitiesP (420, 000) P (150, 000)(200, 000)(440, 000)P (1,060,000)(100, 000)(250, 000)P (500, 000)Common stockRetained earnings 12/31Total Liabilities and EquitiesDetermine the consolidated assets as of December 31.

Given: The financial statement is appeared as follows,

iad an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5- ts books P25,000. SS also had developed several secret formulas that BB assessed a h not recorded on SS's financial records, were estimated to have a 20-year future life. B y of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end e financial statements appeared as follows: BB SS Revenues (from sales and dividends) Cost of goods sold Expenses P (300, 000) P (200, 000) 80, 000 10, 000 P (140, 000) P (110, 000) 140, 000 20, 000 Net Income

iad an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5- ts books P25,000. SS also had developed several secret formulas that BB assessed a h not recorded on SS's financial records, were estimated to have a 20-year future life. B y of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end e financial statements appeared as follows: BB SS Revenues (from sales and dividends) Cost of goods sold Expenses P (300, 000) P (200, 000) 80, 000 10, 000 P (140, 000) P (110, 000) 140, 000 20, 000 Net Income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash consideration. The remaining 40 percent of SS had an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5-year life) that was undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at P50,000. Theses formulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determined that the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: 1) From the data below, determine the net income/(net loss) attributable to the non-controlling interest. 2) From the data below, determine the consolidated assets as of December 31 and the consolidated expenses to be reported for the year. 3) From the data below, determine the net income/(net loss) attributable to the parent.
On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash consideration. The remaining 40 percent of SS had an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5-year life) that was undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at PS0,000. Theses formulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determined that the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: BB Revenues (fram sales and dividends) Cost of goods sold Еxpenses P (300, 000) P (200, 000) 140, 000 20, 000 P (140, 000) P(110, 000) 80, 000 10, 000 Net Income P (300, 000) P(150, 000) (140, 000) -0- P (440, 000) P (250, 000) Retained earnings 1/1 Net Income (110, 000) Dividends paid Retained earnings 12/31 10,000 P 210, 000 150,…
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: A. Determine the consolidated expenses to be reported for the year B. Determine the net income (net loss) attributable to the non-controlling interest
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: * Determine the net income (net loss) attributable to the non-controlling interest.
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: Determine the consolidated assets as of December 31.
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: REQUIRED: 1. Determine the net income (net loss) attributable to the non-controlling interest.
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: * REQUIRED: Determine the consolidated assets as of December 31
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: As an independent case, assume that the goodwill is impaired by P5,000 by December 31, determine the net income/(net loss) attributable to the controlling interest.
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: АВС XYZ P (300, 000) Revenues (from sales and dividends) Cost of goods sold Expenses Net Income P (200, 000) 140, 000 20, 000 P (140, 000) 80, 000 10, 000 Р (110, 000) P (300, 000) (140, 000) -0- P (150, 000) (110, 000) 10,000 P (250, 000) Retained eamings 1/1 Net Income Dividends paid Retained eamings 12/31 P (440, 000) P…
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: * АВС XYZ P (300, 000) P (200, 000) Revenues (from sales and dividends) Cost of goods sold Expenses Net Income 140, 000 20, 000 P (140, 000) 80, 000 10, 000 P (110, 000) P (300, 000) (140, 000) -0- P (150, 000) (110, 000) 10,000 P (250, 000) Retained eamings 1/1 Net Income Dividends paid Retained eamings 12/31 P (440, 000)…
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: As an independent case, assume that the goodwill is impaired by P5,000 by December 31, determine the net income/(net loss) attributable to the controlling interest. Your answer
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: АВС XYZ P (300, 000) P (200, 000) Revenues (from sales and dividends) Cost of goods sold Expenses 140, 000 20, 000 P (140, 000) 80, 000 10, 000 P (110, 000) Net Income Retained eamings 1/1 Net Income Dividends paid Retained eamings 12/31 P (300, 000) (140, 000) -0- P (150, 000) (110, 000) 10,000 || P (250, 000) P (440, 000)…