Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2, and resold 80% of the purchased inventory to unaffiliated companies prior to December 31, 20x2, for P140,000. Dresser produced the inventory sold to Lorn for P75,000. Lorn owns 70% of Dresser’s voting common stock. The companies had no other transactions during 20x2. What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15,000            C. P24, 000 B. P16, 800           D. P39, 000

Q: Corn Corporation purchased inventory from Beef Corporation for P 120,000 on September 20, 2012, and…

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Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: Business combination means when one of the company merges with another company or two companies…

Q: the amount paid, how much is attributable to goodwill?

A: Goodwill is an intangible asset that can't be touched but increases the image of the company. The…

Q: Penny Ltd, a reporting entity, acquired 100% of the issued shares of Lane Ltd on 1 July 2016. The…

A: Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income…

Q: Sanchez Company acquired inventories on June 1, 2021 from its 60% owned subsidiary, Black…

A: Eliminating the inter company transactions Inventory in stock of Sanchez= P 285000*30%= P 85500…

Q: On January 1, 2018, Potter Corporation purchased 80% of Draco Company’s outstanding shares for…

A: The question is multiple choice question Required  Choose the Correct Option.

Q: ABC Corp purchased 95% of the stock of DEF Company on January 2021. On that date, the book value of…

A: On 01.01.2021, ABC Corp purchased stock of DEF Company = 95% As a result of purchase, goodwill…

Q: What amount of consolidated net income will be assigned to the controlling interest for 20x2?   A.…

A: Consolidated sales $140,000Cost of goods sold (60,000)Consolidated net income $ 80,000Income to…

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: Total fair value of assets of Vaxx Corporation = Cash + Accounts receivable + Inventory + Land +…

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: Working note: Computation of amount of goodwill or gain from bargain purchase:

Q: On January 1, Tesco Company spent a total of $4,384,000 to acquire control over Blondel Company.…

A: value of Preferred stock = $ 424000 value of Common stock = $ 3960000 Fair value of Non…

Q: What amount of sales will be reported in the 20x2 consolidated income statement?

A: Consolidated revenue is the amount of sale of goods to the customers.

Q: On April 1, 2021, BBC Co. acquired a 30% stake in LTI Inc. for $ 100,000. This amount includes $…

A: Consolidated Income Statement: It can be referred to as an income statement prepared by the parent…

Q: On January 1, Tesco Company spent a total of $4,384,000 to acquire control over Blondel Company.…

A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: Fair Value = Cash + accounts receivable + inventory + land + buildings & equipment - accounts…

Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Working note: Computation of fair value of the previously acquired 15% common stock of K Company:…

Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: Here in this question, we are required to calculate goodwill that needs to record immediately after…

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A: Consolidated Balance Sheet:   The consolidated balance sheet is the merger of the parent company…

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A:

Q: At the beginning of current year, Cynosure Company purchased 30% of the ordinary shares of another…

A: Solution: Net fair value of assets = P7,000,000 + P1,500,000 + P500,000…

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: Total stockholders' equity in the consolidated balance sheet is the summation of the common stock of…

Q: n January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: SOLUTION- EXPLANATION- 1-TOTAL FAIR VALUE OF VAXX CORPORATION = 20000…

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: Business combination is a process where one firm acquires the other firm by purchasing most of its…

Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…

A: (A). P60,000 is the correct option.

Q: Hide Corporation is a wholly owned subsidiary of Seek Company. During 2015, Hide sold all of its…

A: Given: Sold amount of the company to Seek = $ 400,000 The sold amount at year-end by Seek=$ 416,000…

Q: On January 1, 2021, Alamar Corporation acquired a 42 percent interest in Burks, Inc., for $185,000.…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2,…

A: A parent company is said to be the company that holds enough stock of another firm to have control…

Q: AA Corporation holds 80 percent of the stock of Movie Production Inc. During 20x9, AA purchased an…

A: Net Income is the revenue amount reduced by cost of goods sold. The calculation is given below:

Q: Senpai Company acquires 15% of Kohai Company's common stock for P600,000 cash and carries the…

A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: Consolidated balance sheet is the balance sheet prepared by the company which has another subsidiary…

Q: P Co acquired 75% of the shares in S Co on 1 January 20X2 when the retained earnings of S Co stood…

A: A consolidated financial position statement is a key fiscal summary if there should be an occurrence…

Q: What amount of net income will be reported in the 20x9 consolidated income statement?

A: Consolidated net income is the income which has been earned by the parent company and the subsidiary…

Q: At the beginning of current year, Cynosure Company purchased 40% of the ordinary shares of another…

A: The following computations are done for Cynosure Company.

Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…

A: Consolidated revenue is the amount of sale of goods to the customers.

Q: On December 31, Phoenix Corporation acquired all of Sedona Corporation’s voting stock in exchange…

A: In the above question we have given data of two companies on the basis this we have to calculate…

Q: PP Corp. owned 80% of KK Corp.'s common stock. During October 20x9, KK sold merchandise to PP for…

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Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: It is pertinent to note that for calculation of goodwill fair value of net assets needs to be taken…

Q: What inventory balance will be provided by the consolidated entity on December 31, 20x2? A. P15,…

A: Inventory reported by Lorn P 24,000 Unrealized profit (P45,000 x .20) (9,000)

Q: Fried Inc. purchased 90% ownership of Chicken Corp. in 2020, at underlying book value. On that…

A:

Q: Lorn Corporation purchased inventory from Dresser Corporation for P 120,000 on September 20, 20x2,…

A: Following are the answers to the given questions

Q: What amount of cost of goods sold will be reported in the 20x2 consolidated income statement?

A: Cost of goods sold is the amount of direct expenses and overhead applied of the goods and does not…

Q: Paggle Corporation owns 80% of Spillway Inc.'s common stock that was purchased at its underlying…

A: Explanation: 1. Paggle Corporation owns 80% of Spillway Inc.'s common stock. So, Paggle Corporation…

Q: On January 1, 20x1, Rooster Co. acquired 75% interest in Cockerel Co. for P600,000. At this time,…

A: The portion of the period's consolidated profit or loss that is attributable to the parent, net of…

Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…

A: Answer Option E is the Correct Answer i.e 69,200

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.