On April 1, 2023, Dark Company purchased P50 par, 10,000 ordinary shares of Vader Company at P80 per share. The shares are designated as equity investments at fair value through other comprehensive income. On October 26, 2023 , Dark received 10,000 rights to purchase an additional 2,000 shares at P90 per share. The share rights received had an expiration date of February 1, 2024. How much is the income recognized upon receipt of share rights?

Q: On January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of…

A: Solution: Cost of investment for Gamu = 10000*P70 = P700,000 Sale value of investment for Gamu =…

Q: On June 15, 2021, LABAN Company owns 20,000 shares with a cost of P1,000,000 of GANGDULO Company’s…

A: On 15.06.2021, LABAN company owns shares of GANGDULO company = 20000 shares Cost of purchase =…

Q: The entry to record the declaration of the dividend would include a debit to Retained Earnings of

A: Given that: Purchase price of 20,000 shares = P300,000 Market price of shares = P500,000

Q: On January 1, 2021, TAPANG Company acquired 5,000 shares of FVOCI securities of AKO Company at…

A: An investment made as FVOCI (Fair value through Other Comprehensive Income) is recorded at the fair…

Q: epare the journal entries for Grouper for 2019 and 2020, assuming that Grouper cannot exercise…

A:

Q: On December 31, 2020, DEF, Inc. holds 100,000 shares of Devin Company with market value of…

A: Gain or loss is the amount of money gained or lost on investment. If the money invested give more…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A:

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: her comprehensive income, as follows: June 20, 2019 - 1,000 shares for P101,600  November 5, 2019 -…

A: Valuation of Investment held for sales: Investment in the equity share of other companies which are…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The calculation of holding gain that should David report in equity on December 31 is shown hereunder…

Q: TOOLAD Company agreed agreed to pay P850,000 cash and issue 50,000 shares of its P10 par (20 current…

A: A business combination occurs when an entity acquires control over an organization. Control means…

Q: On January 1, 2021, Tan Beda Company acquired 10% of the 100,000 outstanding voting shares of Taint…

A: A statement of financial position is a statement that is used to report all the assets and…

Q: de Incorporated declared and paid dividends of P250,000 in 2021 and reported net income of…

A: Tan Beda acquired 10% voting shares in Taint Dude .  10% is very low amount for controlling…

Q: TOOLAD Company agreed agreed to pay P850,000 cash and issue 50,000 shares of its P10 par (20 current…

A: Step 1 In business combination, when the number of shares is issued, they are generally issued   at…

Q: On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The…

A: Initial measurement of investment: Initially, the value of an investment property is determined by…

Q: Dahlia Company has 35,000 ordinary shares of Amelie Corporation as an investment in equity…

A: Realized Gain on Sale:- It is a result of the selling of assets at a price higher than the original…

Q: TOOLAD Company agreed agreed to pay P850,000 cash and issue 50,000 shares of its P10 par (20 current…

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

Q: market values of P20 and P2,300,000, respectively. Moreover, it agreed to pay an additional P170,000…

A: Purchase Consideration is the amount paid in consideration for the fair value of net assets in…

Q: What amount of unrealized gain should Sisig Corp. report in its December 31, 2020 Statement of…

A: Unrealized gain is the gain which has been earned by the company when the investment is measured at…

Q: During the year 2021, Pal Company purchased 1,000 shares of Pak Company ordinary shares at P150 per…

A: As per Accounting provisions, A held for trading share is purchased with the intention of short…

Q: During the year 2021,David Company purchased 1,000 shares of Goliath Company ordinary shares at P150…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…

A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…

Q: The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity is

A: Unrealized loss is the loss which has been recorded by the company due to reason of change in the…

Q: On January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The…

A: Initial measurement of the investment = Purchase cost of Investment + Brokerage fees

Q: In 2020, ION Corporation issued 50,000 shares of P10 par value for P100 per share. In 2021, the…

A: Reacquisition of shares means when shares of the company are being repurchased or reacquired by the…

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

A: The shares designated to be valued at fair value through other comprehensive income are to be…

Q: Grouper Inc. acquired 10% of the outstanding common shares of Gregson Inc. on December 31, 2019. The…

A: Step1 Under equity method, return is not accountable, i.e., dividend is not considered and in fair…

Q: On January 1. 2021, Family Company purchased 10% of San Company's 100,000 outstanding ordinary…

A: An increase in fair value of 10% interest which is acquired on January 1, 2021 is not reported as…

Q: On April 5. 2020, Paul Company purchased P50 par, 10,000 ordinary shares of George Company at P80…

A: Right Shares: - Right shares are those shares that are issued by the company to its existing…

Q: On January 1, 2020. Mickey Mouse Corporation owns 15,000 ordinary shares representing 15% of the…

A: Answer: Jan 1 2020: 15000 shares with cost of P1,400,000 Dec 31,2020: 15000 shares with fair market…

Q: On June 30, 2021, Peter, Inc. purchased the following shares at a total cost of P10,700,000…

A: The realized gain on the sale of a share is calculated by subtracting the book value of the shares…

Q: On September 1, 2019, Napakabasic Co. acquired 5,000 shares of the 20,000, P200 par, outstanding…

A: Under FVPL, dividend received will less from the cost of investments and subsequent reporting to be…

Q: On January 1, 2021, the Swiss Company purchased 20,000 ordinary shares at P100 per share to be…

A: Right offers are the offers given after original issue to the current investor to buy a greater…

Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…

A: The correct statement is

Q: Dahlia Company has 35,000 ordinary shares of Amelie Corporation as an investment in equity…

A: A realized gain refers to the difference between the sales value and original purchase value.

Q: Determine the amount of goodwill or gain on bargain purchase from the above transaction. Give the…

A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…

Q: On January 1, 2019, Blackpink Company purchased 50,000 shares of another entity for P3,600,000. On…

A: Given information, Number of shares purchased =50,000 Stock rights received = 50,000   Investment…

Q: On January 2, 2020, Kesha Corporation bought 10 percent of Bart Corporation's share capital for…

A: Unrealized Gain : As per PFRS (Philippine Financial Reporting Standard) 9, An investment will be…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution:Total cost of investment = Purchase cost + Brokerage fee - dividend= 40000*100 + 120000 -…

Q: On January 1, 2020, Mona, Inc., acquired 80 percent of Lisa Company’s common stock as well as 60…

A: In the case of group enterprises, the consolidated balance sheet is a crucial financial statement.…

Q: 1. How much is the income recognized upon receipt of share rights? a. P0  b. P10,000 c. P20,000  d.…

A: On April 5. 2020, Paul Company purchased P50 par, 10,000 ordinary shares of George Company at P80…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine Inc. stock at P100 per…

A: Introduction:- Calculation of total cost of investment as follows:- Total cost of investment =…

Q: On January 1, 2021, Mintal Company, an SME, purchased 10,000 shares of Los Amigos Company P100 par…

A:

Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2020, by issuing…

A: A business combination is a transaction in which a buyer takes over control of another company (the…

Q: ILA Company agreed to pay $850,000 cash and issue 50,000 shares of its $10 par (20 current fair…

A: Step 1 In business combination, when the number of shares is issued, they are generally issued   at…

Q: On January 5, 2021, Sisig Corp. purchased 50,000 shares of Toyomansi Company ordinary share for…

A: As per International Financial Reporting Standard 9, An investment in equity instruments is valued…

Q: CFAS Company had the following shareholders' equity on January 1, 2022: Preference share capital,…

A: Note: As per our guidelines, only the first three subparts will be answered.   1. Amount charged to…

Q: January 1, 2021, Arneyow Company acquired 10% of the outstanding voting shares of Pee Yu Pi…

A: Calculation of Carrying Amount of investment   Acquisition Amount = 900,000+2,760,000…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: Investment Accounting: When money is paid for an investment instrument, investment accounting takes…

Q: How much unrealized holding gain should Lover report in profit or loss for the year 2022?

A: The calculation of unrealised holding gain that should be reported in profit or loss for the year…

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.