On December 31, 2020, R papa Company, an entity with no subsidiary, purchased 10,000 ordinary shares from Marcos Corp. at $150 per share. At the time of purchase, Marcos has an outstanding 50,000 shares with a total shareholders’ equity of $7,500,000. For the year 2021, Marcos reported a profit of $3,000,000. On December 30, 2021, R papa received a cash dividend of $50 per share. What is the carrying value of the investment at December 31, 2021?

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 December 31, 2020, GHI Corporation holds 50,000 shares of Harry Company with market value of…

A: Unrealized gain means the upsurge in the worth of an asset or security which is yet to sold for…

Q: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share…

A: The investment is valued under the fair value method if the investment is in less than or equal to…

Q: On January 1, 2021, Manette Company acquired 100,000 ordinary shares of Nette Company for…

A: Solution: Manette should recognized in profit or loss for the year 2021 = Income of Netter company *…

Q: On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. The…

A: a) calculation of dividend income - SIKAP owns 10000 FVOCI shares which represent 10% of the total…

Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…

A: In the books of Bumili Co. , On 1st January, 2022 : Purchase (10,000 shares) = P1,000,000 I.e Share…

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: On October 1, 2021, SIKAP Corporation owns 10,000 shares acquired at a cost of P120,000 classified…

A: The dividend income is recognized in the profit and loss account if it is declared by the…

Q: On August 31, 2020, SG Corporation (SME) purchased all the net assets of Popsters Corporation by…

A: The capitalized cost of the investment is P2,949,000.

Q: On 1 October 2018, KING acquired 30,000 of VAM's 100,000 shares in exchange for 75,000 of its own…

A: Associate Company is the corporation in which another company has made substantial proportion of…

Q: What Is the investment carrying value at December 31. 2020? a. P6,162,000 b. P5,970,000 c.…

A: On October 1, 2019, Michael Company purchased 30,000 shares of Jackson Company at P180 per share. At…

Q: On October 15, 2020, the Skyline Company received a liquidating dividend of P100,000 from David…

A: Formula: Dividend income = Total liquidating dividend x Ownership Percentage in the company.

Q: On January 1, 2020, Elite Company paid P 18,000,000 for 50,000 ordinary shares of Craze Company…

A: The total amount of investment at the end is the net value of an investment which is calculated by…

Q: MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a cost…

A: The trading investment is recognized at FVTPL and any changes in their fair value are recognized in…

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

A: Journal entries are those entries which are recorded in the journal book at the time when-ever a…

Q: BOY Co. acquired 50,000 ordinary shares of GIRL Co. on September 30, 2019 for P8,250,000. On October…

A: 1. Details of GIRLS Co. shares held by BOYS Co. before and after the share split. Date Cost of…

Q: Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At…

A: Balance of equity investment = Cost of purchase + Share of net income - Share of dividend

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

A: On January 1, 2021, ABC purchased 90% of the outstanding shares of JKL Company at a cost of…

Q: How much is the unrealized gain (loss) recognized in Bumilis 2022 profit or loss?

A: Unrealized gain or loss is the amount of gain or loss which the company has taken into account by…

Q: Pangan Corp. acquired 4,000 shares of Agustin, Inc. ordinary shares on Oct. 20, 2018 for P660,000.…

A: Answer with explanation are as follows

Q: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $592,000…

A: The question is based on the concept of Financial Accounting.

Q: Corporation by transferring cash of P500,000 and issuing 40,000 ordinary shares with par value of…

A: A cost involved in the acquisition of ownership in the entity for long-term benifits to the entity.…

Q: . Berry's Concrete acquired 25% of the outstanding common stock of Blakeley, Inc. on January 1,…

A: Journal entry is a primary entry that records the financial transactions initially.

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: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $592,000…

A: Consolidated retained earnings refer to the shareholders' equity component on the consolidated BS…

Q: On January 1, 2019, Matcha Company purchased 25% of the outstanding ordinary shares of Milk Tea…

A:

Q: On August 31, 2020, SG Corporation (SME) purchased all the net assets of Popsters Corporation by…

A: Purchase consideration = Cash paid + fair value of shares + consulting fees + listing fee

Q: On January 1, 2021, merma Corp. purchased 80% of the outstanding shares of sand Co. at a cost of…

A: Consolidated net income is associated with parent companies and their subsidiaries. A parent company…

Q: Heidebrecht Design acquired 30% of the outstanding common stock of Oriole Company on January 1,…

A: 1) journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise…

Q: Zwick Company bought 25,500 shares of the voting common stock of Handy Corporation in January 2021.…

A: Dividend  revenue  to be recognized  = Number of shares held × Dividend  per share.

Q: On January 1, 2023, Evans Company purchased 40% of Farley Corporation’s 800,000 outstanding shares…

A: Journal entries: Journal entries are recognized in the journal book for showing the transactions as…

Q: For the next (2) two questions: STU Company purchased 10,000 shares representing 2% ownership of…

A: The income statement of a company represents the outcome of the operations of the business in terms…

Q: On December 30, 2020, Aloha Company, an entity with no subsidiary, purchased 10,000 ordinary shares…

A: Using equity method, the investment value is decreased with receipt of dividend and increased with…

Q: On April 1, 2019, Tagaytay Company purchased 25,000 ordinary shares of Sulo Co. at P180 per share, a…

A: Here in this problems which describe the gain which are arised at the time of sale of ordinary…

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

A:

Q: On January 1, 2019, Matcha Company purchased 25% of the outstanding ordinary shares of Milk Tea…

A: Here discuss about the details of the equity investment and its carrying value after added up the…

Q: On January 1, 2020, HULK CORP. acquired 70% of outstanding ordinary shares of HALL INC. at a price…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: On April 1, 2019, Star Company purchased 30,000 ordinary shares of Moon Company at P180 per share, a…

A: The investment in equity shares of another company is recorded in the books of investor either by…

Q: Harrison Co. owns 20,000 of the 50,000 outstanding ordinary shares of Taylor, Inc. During 2021,…

A: The holding of share are considered as the investment and the  balance of investment can be…

Q: On October 15, 2020, the Liza Company received a liquidating dividend of P100,000 from Edward…

A: Equity method of accounting is followed when the holding company has a significant influence in…

Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…

A: Hanzs' share in net income of Eve = Eves' Net income ×Hanzs' controlling share=P 1,400,000 × 30%=P…

Q: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $652,000…

A: GIVEN   Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for…

Q: On January 1, 2020, KISSES acquired 90% of the equity share capital of HUGS in a share exchange in…

A: Introduction As per acquisition accounting if any entity acquires another entity then asset is…

Q: On April 1, 2019, Tagaytay Company purchased 25,000 ordinary shares of Sulo Co. at P180 per share, a…

A: Share represents the ownership claim on the company. It is a share part of the share capital. The…

Q: For the next (2) two questions: STU Company purchased 10,000 shares representing 2% ownership of…

A: The journal entries can be defined as the base of accounting because the business transaction is…

Q: On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.’s 50,000 outstanding common shares at a…

A: Purchased 30% 50,000 outstanding common shares of Yardley Co.’s at $20 per share Yardley paid cash…

Q: r market values. Assume income was earned evenly throughout the year except for the intercompany…

A: The balance sheet is a statement prepared to ascertain the true position of assets and liabilities…

Q: Oriole Cosmetics acquired 10% of the 191,000 shares of common stock of Martinez Fashion at a total…

A: The journal entries are prepared to record daily transactions of the business.

Q: On December 31, 2020, Naengmyeon Company, an entity with no subsidiary. purchased 10,000 ordinary…

A: A share is a financial security which can be purchased for the investment purpose in a company. An…

Q: On March 1, 2022, Dolor Company purchased 5,000 shares of Susan Incorporated paying P12 each share…

A: As per IAS 39, Financial instruments recognition and measurement,  Their is an irrevocable…

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.