n January 1, 2022, Entity A, a small-medium enterprise, invested P400,000 for a 30% interest in a joint venture. Assume the INDEPENDENT CASES: For the year ended December 31, 2022, the joint venture reported a net loss of P100,000. The fair value of the investment was P390,000 and the cost to sell was P25,000. There was a public price quotation for the joint venture. Entity A opted to use the equity model. What is the balance of the Investment in Joint Venture account to be reported at December 31, 2022?
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On January 1, 2022, Entity A, a small-medium enterprise, invested P400,000 for a 30% interest in a joint venture.
Assume the INDEPENDENT CASES:
For the year ended December 31, 2022, the joint venture reported a net loss of P100,000. The fair value of the investment was P390,000 and the cost to sell was P25,000. There was a public price quotation for the joint venture.
Entity A opted to use the equity model. What is the balance of the Investment in Joint Venture account to be reported at December 31, 2022?
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- On January 1, 2022, Entity A, a small-medium enterprise, invested P400,000 for a 30% interest in a joint venture. Assume the INDEPENDENT CASES: For the year ended December 31, 2022, the joint venture reported a net income of P300,000 and declared dividends of P90,000. The fair value of the investment was P550,000, and the cost to sell was P50,000. There was a public price quotation for the joint venture. Entity A opted to use the cost model, what is the amount to be reported in profit or loss for the year ended December 31, 2022? Entity A opted to use the cost model, what is the balance of the Investment in Joint Venture account to be reported at December 31, 2022?On January 1, 2022, Entity A, a small-medium enterprise, invested P400,000 for a 30% interest in a joint venture. Assume the INDEPENDENT CASES: Case 1: For the year ended December 31, 2022, the joint venture reported a net income of P150,000 and declared dividends of P40,000. The fair value of the investment was P325,000 and the cost to sell was P15,000. There was no public price quotation for the joint venture. Entity A opted to use the cost model, what is the amount to be reported in profit or loss for the year ended December 31, 2022? Entity A opted to use the cost model, what is the balance of the Investment in Joint Venture account to be reported at December 31, 2022?On January 1, 2013, Regina Company entered into a joint agreement classified as a joint venture. For an investment of P1,000,000, Regina Company obtained 30% interest in Gold Joint Venture, Inc. During the year, Gold Joint Venture, Inc. reported profit of P2,000,000 and other comprehensive income of P400,000. Gold Joint Venture, Inc. declared and paid dividends of P1,200,000 during the year. How much is the carrying amount of the investment on December 31, 2013?
- On January 1, Intergen, Inc., invests $200,000 for a40 percentinterest in Ryan, a new jointventure with two other partners, each investing $150,000 for 30 percent interests. Intergen plansto sell all of its production to Ryan, which will resell the inventory to retail outlets. The equitypartners agree that Ryan will buy inventory only from Intergen. Also, Intergen plans to use theequity methodfor financial reporting.During the year, Intergen expects to incur costs of $850,000 to produce goods with a final retailmarket value of $1,200,000. Ryan projects that, during this year, it will resell three-fourths ofthese goods for $900,000. It should sell the remainder in the following year.The equity partners plan a meeting to set the price Intergen will charge Ryan for its production.One partner suggests a transfer price of $1,025,000but is unsure whether it will result in anequitable return across the equity holders. Importantly, Intergen agrees that its total rate of return(including its…On July 1, 2019, CaviteCorporation purchased 40% of the outstanding ordinary shares of another entity for P500,000 when the net assets of the investee amounted to P1,000,000. At acquisition date, the carrying amounts of the identifiable assets and liabilities of the investee were equal to their fair value, except for equipment for which the fair value was P200,000 greater than carrying amount and inventory whose fair value was P100,000 greater than the cost. The equipment has a remaining life of 5 years and the inventory was all sold during 2019. The investee reported net income of P550,000 for 2019 and paid dividends amounting to P800,000. Required: What is the maximum amount which could be included in income before tax to reflect the investor’s equity in earnings of the investee for 2019?Shanghai Inc. has granted share options to employees. The total compensation expense to the vesting date of December 31, Year 4 has been calculated at P6,000,000. The entity has decided to settle the award early on December 31, Year 3. The compensation expense charged since the date of grant on January 1, Year 1 was P1,500,000 for Year 1 and P1,300,000 for Year 2. The compensation expenses that would have been charged for Year 3 is P1,200,000. What is the compensation expense for Year 3? A. 3,200,000 B. 0 C. 1,200,000 D. 2,000,000
- Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach.Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach: Group of answer choices None of the given P360,000 None P480,000Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach: a. 480,000 b. 360,000 c. None of the given d. None
- Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute for the amount of goodwill, using partial goodwill or proportionate basis approach: a. None b. 480,000 c. None of the given d. 360,000On July 1, 2020, Bar Inc. purchased 50,000 of Tell Inc.’s preference shares in exchange of a tract of Bar’s land which had a carrying amount of P1,200,000 in Bar’ books. The land also had a value in use of P2,000,000. The shares were classified as financial assets at fair value through profit or loss. If the fair value of Bar's land and Tell's shares cannot be reliably determined, how much should the FVPL investment be valued at initial recognition?XENON Company merged into URANIUM Company on July 1, 2021. In exchange for the net assets at fair market value of XENON Company amounting to P696,450, URANIUM, issued 68,000 ordinary shares at P9 par value with a market price of P12 per share. Out-of-pockets of the combination were as follows: Legal fees for the contract of business combination P35,600; Audit fee for SEC registration of stock issue P90,000; Printing costs of stock certificates P14,500; Broker’s fee P23,600; Accountant’s fee for pre-acquisition P80,000; Other indirect cost of acquisition P75,000; General and allocated expenses P43,000; Listing fees in issuing new shares P36,000. XENON will pay an additional cash consideration of P455,000 in the event that URANIUM’s net income will be equal or greater than P950,000 for the period ended December 31, 2021. At acquisition date, there is a high probability of reaching the target net income and the fair value of the additional consideration was determined to be P195,000.…