Investor company acquired a 40% interest in an associate for P3,000,000. In the financial period immediately following the date on which it became an associate, the investee took the following action: revalued assets up to fair value by P500,000 generated profits of P1,600,000 declared a dividend of P300,000 The balance in the investor's account of 'Shares in associate', after equity accounting has been applied, is?

Q: On January 2, year 1, ABC Company purchased 75% of XYZ's outstanding common stock. On that date, the…

A: a) In its December 31, year 1 consolidated statement of retained earnings, what amount should ABC…

Q: On January 2, year 1, ABC Company purchased 75% of XYZ's outstanding common stock. On that date, the…

A: The question is related to the Consolidation. The details are as under  ABC Company Share in XYZ  =…

Q: Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a…

A: Number of bonus shares = 30000 x 20%= 6000 shares Number of shares as on December 31, Year 3 =…

Q: On May 20, Montero Company paid $180,000 to acquire 55 shares (9%) of ORD Corporation as a long-term…

A: The companies invest in long-term investments to make additional income on the surplus funds at…

Q: The Island Cruises stock is publically traded. During the year, Island Cruises reported net income…

A: Return on investment is a percentage of net income with respect to its investment. It is a prominent…

Q: Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell…

A: Total fair market value of assets acquired = net assets + Goodwill - Contingent consideration =…

Q: On January 1, 20x1, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair…

A: The consolidated profit of the group is allocated to owners of the parent by deducting the share of…

Q: Duday Corporation incurred the following transactions relating to investment in Efren Corporation…

A: Unrealized gain = Fair value of shares - Sale price of shares=P 192- P190=P2 per share   Amount of…

Q: At the beginning of current year, Disgust Company purchased 30,000 shares of an investee's 200,000…

A: Investment income refers to the income earned by a person or business entity on the investments made…

Q: On January 1, 20X4, ABC Company acquired 100,000 ordinary shares of XYZ Company for P5,000,000. At…

A:

Q: John Ltd, an ultimate parent reporting entity, holds a 25% interest in the voting shares of Wick…

A: Journal entry is the process of recording the business transactions in the accounting books for the…

Q: Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for…

A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: During Year 1, Peninsula Corporation acquired, as financial ssets at fair value through profit or…

A:

Q: On October 26, 20x1, Entity A acquired 100% interest in Entity B for 2,800,000. On this date, Entity…

A:

Q: Bayview Company bought 1,000 shares of PLDT shares as equity investments on January 10, Year 2 at…

A: Investment in equity securities is one of the important asset of the business. Dividends are also…

Q: On January 1, 20X7, Phillips Corporation acquired 35 percent of the outstanding shares of Shell…

A: The equity method of accounting shows the total investment in the associate…

Q: Gant Company purchased 20 percent of the outstanding shares of Temp Company for $70,000 on January…

A: The accounting approach of treating investments in affiliated corporations is known as the equity…

Q: On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term…

A: An acquisition is when a company purchases most of another company's shares.

Q: Baur Company acquired 20,000 ordinary shares on October 1 for P1,344,000 to be held for trading. On…

A: Stock: Stock is a share that describes the ownership of an individual in the corporation. These…

Q: Parent Company acquires 15% of Subsidiary Company's ordinary shares for P500,000 cash and carries…

A: Non-Controlling interest- When a company purchases the business of other entity/company partly or…

Q: Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a tradinginvestment for…

A: Journal entry to record the purchase of an investment will include a debit to investment account and…

Q: On January 1, 2021, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for P200,000.…

A: Acquisition is a process where a company purchases most or all the shares of another company to have…

Q: On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair…

A: Consolidated profit refers to the aggregated profit of parent and subsidiary company that is stated…

Q: P Company acquires 15% of Subsidiary Company’s ordinary shares for P500,000 cash and carries the…

A: Goodwill:- The term “goodwill” pertains to that intangible asset that appears into play only when a…

Q: uires 15% of Subsidiary Company’s ordinary shares for P500,000 cash and carries the investment using…

A: Consolidation statement:  When one company takes over another company's share by paying purchase…

Q: n January 1, Puckett Company paid $1.28 million for 64,000 shares of Harrison’s voting common stock,…

A: As per IAS 28, if any investment is made in associates and joint ventures, the equity method should…

Q: which were acquired during Year 2 for a total consideration of Inn Corporation had 30,000 ordinary…

A:

Q: Gaw Company purchased 15% of the common stock of Trace Corporation for $150,000 on 1/1/X1. At the…

A: Dividend paid  = 60,000 X percentage ownership = 15%

Q: Required: a. Prepare the journal entries that both companies should make for the year 20X1. b.…

A: Merger and acquisition: Merger and acquisition can be defined as the process of acquiring the assets…

Q: A Ltd pays $90,000 to acquire 90% of the shares of B Ltd on 1 January 20x4 when B Ltd was…

A: Answer: Since the 10 % shares of B Ltd are held for trading securities, valued at 10000 shares at $2…

Q: On January 1, 2021, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for P200,000.…

A: Purchase consideration: Fair value of the equity investment + Purchase price paid for acquiring…

Q: Company re-acquired its own 125,000 shares, giving Ideal Inc contro! 43. On January 3, 2022, Ideal…

A: When son company reacquired his own shares ,then it becomes subsidiary of Ideal co.

Q: Flicker, Inc. acquired 30% of  West Company's voting shares for P 200,000 on January 2, 20x2.…

A: Whenever a company holds 20% to 50% of voting rights of another company, then equity method is…

Q: During Year 1, Peninsula Corporation acquired, as financial assets at fair value through profit or…

A:

Q: Renee Company invested in 60,000 shares of another entity for a total cost of P5,500,000 on January…

A: Right issue Right issue which has made the opportunity to the existing shareholders to purchase…

Q: P Company acquires 15% of S Company’s ordinary shares for P500,000 cash and carries the investment…

A: Goodwill on consolidation = Purchase consideration paid - fair value of net assets acquired

Q: Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell…

A: Total fair market value of assets acquired = net assets + Goodwill - Contingent consideration =…

Q: On January 2, year 1, an entity purchased a 30% interest in Tod Co. for 250,000. On this date, Tod’s…

A: The equity method is a method used by a company record the profits earned through its investment in…

Q: An investor company owns 25% of the common stock of an investee company. The investor has…

A: The company makes an investment in another company to increase its earnings. The company receives…

Q: John Ltd, an ultimate parent reporting entity, holds a 25% interest in the voting shares of Wick…

A: Adjusting entries are a collection of journal entries recorded at the end of an accounting period to…

Q: Blanton Corporation purchased 15% of the outstanding shares of common stock of Worton Corporation as…

A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…

Q: Cacik acquired 80% of the 1 million issued £1 ordinary shares capital of Chaas on 1 April 20X1 for…

A: When an entity acquires voting interest of another entity by acquiring either partially or fully the…

Q: On January 31, 2022, Parent Company purchased all the identifiable net assets of Sub Company by…

A: The cost of investment includes the cash transferred, Fair value of assets transferred, fair value…

Q: Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell…

A: Total fair market value of assets acquired = net assets + Goodwill - Contingent consideration =…

Q: Player Corporation purchased 100 percent of Scout Company's common stock on January 1, 20X5, and…

A: Under the Equity method, income and loss of the Investee Company is adjusted in the value of…

Q: At the beginning of the current year, WWW Company purchased 10% of RRR Company's outstanding…

A: When the company purchases the shares of the other company then the amount invested is recorded as…

Q: Carla, Inc. purchased 1,810 shares of Oneida Corporation common stock for $84,600. During the year.…

A: As per  IFRS 9, Equity investments are to be accounted as per Fair value through profit or loss…

Q: On January 1, 2021, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for P200,000.…

A: A business combination occurs when an entity acquires control over an organization. Generally, the…

Q: On January 1, 20x1, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair…

A: Consolidated net income   ABC Co. XYZ Inc. Total Sales 300,000 120,000 420,000 Cost of goods…

Q: At the beginning of the current year, an entity acquired 40% of the ordinary shares of an associate.…

A: Equity is part of the ownership contribution in a company that holds ownership in a company by the…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.