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Determine the percentage owned by the parent
On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete working paper elimination entries on that date for the consolidated
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- The following transactions appear on the Equity investments at fair value through profit or loss account of Chicker Corporation Date Particulars Debit Credit 03/1/x6 Purchased 40,000 shares of PLDT at P 30.75/share and 20,000 shares of Benpress at P 23/share P 1,690,000 07/03/x6 Purchased PAG-IBIG 15% bonds, face value P 4,000,000. Interest dates July 1 and Jan 1. Maturity date July 1, 20x9 4,000,000 11/5/x6 Sold 14,400 shares of PLDT at P 30/share And 4,000 shares of Benpress at P 25/share P532,000 12/31/x6 Sold PAG-IBIG bonds at 98 plus accrued interest…50Equity securities acquired by a corporation which are accounted for by reporting unrealized holding gain/loss in the equity section of the statement of financial position. a. Investment at FVPL where a company has holdings of less than 20% b. Investment at FVOCI where a company has holdings of less than 20% c. Investment where a company has holdings of between 20% and 50% d. Investment where a company has holdings of more than 50%The ABC Company will issue shares of P 20 par value common stock for all the assets and liabilities of XYZ Company. ABC Company’s common stock has a current price of P 40 per share. The fair market value of the current assets of XYZ is P 800,000, while that of the PPE is P 3,200,000. The liabilities are 600,000. To have a gain from acquisition of P200,000 the amount of shares to be issued by ABC Company should be : 75,000 74,000 85,000 80,000
- Founded on January 1, 20X1, Gehl Company had the following passive investments in equity securities at the end of 20X1 and 20X2: Equity Security Cost 12/31/X2 Fair Value A $ 96,000 $ 94,000 B 184,000 162,000 C 126,000 136,000 Required: If the company recorded a $4,000 debit to its Fair value adjustment account as its 20X2 fair value adjustment, what must have been the unrealized gain or loss reported at the end of 20X1?1. Avalanche Inc. revealed the following information for the year ended December 31. 2021 Preference share. P100 par-P2.4 million; Share premium, preference - P700,000; Ordinary share, P15 par-P3.5 million, Share premium, ordinary-P1.5 million. Subscribed ordinary share - P100,000, Retained earnings - P2 million, Subscription receivable, ordinary - P20,000 How much is the legal capital? A.P6 million B.PB 1 million CP5.9 million D.P8 2 million 2.At the beginning of 2021, DAI Corp. was organized with authorized capital of 200,000, P500 par value shares. The following transactions transpired during its first year of business. February 4- Issued 15.000 shares at P510 per share April 10- Issued 3,000 shares for services received (FMV of the services is P1.7 million). October 23-Issued 5,000 shares in exchange for a land (FMV) the land is P3 million) What amount should be reported as share premium? A.11.500.000 B. 23.000 C.850.000 D.12.350.000 3. At the beginning of 2021, DAI Corp. was…During 2021, Barto Company purchased marketable equity securities as short-term investment to be measured at fair value through other comprehensive income. The cost and market value on December 31, 2021 were as follows: Security No. of Shares Cost Market Value A 5,000 500,000 550,000 B 25,000 2,800,000 2,650,000 C 40,000 2,150,000 3,950,000 The entity sold 10,000 shares of B on January 5, 2022 for P150 per share. The market price per share of Security A and Security C is P320 and P150 respectively, as of December 31, 2022. What amount should be recognized in the Profit or Loss Statement as realized gain or loss on sale of equity securities during 2022?
- Based on the presumption in IAS 27, the cost method is applied for equity securities when the percentage of ownership of another company is: Select one: A. 20% to 50%. B. Exactly 100%. C. Less than 20%. D. Over 50%.Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000 Share premium 2,000,000 Retained earnings 4,000,000 The entity had 400,000 authorized shares of P5 par value, of which 200,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021. The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,000,000 on July 1, 2020. The fair value less cost to distribute is P1,500,000 on December 31, 2020, and P900,000 on March 1, 2021. The net income for 2020 was P3,000,000. - What is the carrying amount of the inventory on December 31, 2020? - What is the amount to be recognized in profit or loss for the distribution of the non- cash dividend?
- Ared Company showed the following shareholders’ equity on January 1, 2020: Share capital 1,000,000 Share premium 2,000,000 Retained earnings 4,000,000 The entity had 400,000 authorized shares of P5 par value, of which 200,000 shares were issued and outstanding. On July 1, 2020, the entity declared a property dividend of inventory payable on March 1, 2021. The inventory had a P1,200,000 carrying amount and a fair value less cost to distribute of P1,000,000 on July 1, 2020. The fair value less cost to distribute is P1,500,000 on December 31, 2020, and P900,000 on March 1, 2021. The net income for 2020 was P3,000,000. - What amount should be reported as retained earnings on December 31, 2020? - What is the dividend payable on December 31, 2020?Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?Grow Company declared and distributed a 15% share dividend with fair value of P2,500,000 and par value of P2,000,000 and a 30% share dividend with a fair value of P5,000,000 and par value of P3,500,000. What amount of share premium should be recognized by Grow?