On December 31, 20X1, Par Inc reported total assets of $860,203, white Sub Corp reported total assets of $171,991. The fair values of Sub's assets and liabilities on the same date were $214,421 and $49,313 respectively. On the mornring of January 1. 20X2, Par agreed to acquire 100% of Sub for a total value of B6.25% of Sub for a total value of $286,678 by paying cash. On the consolidated balance sheet immediately after the acquisition, what should be the total assets reported by the combined entity under the fair-value-enterprise (FVE) method? O a. $955,218 O b. $979,099 Oc. $1,002,979 Od. $1,026.860 O e. $931,338
Q: On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000…
A: Step 1 The consolidated net income for 2017 and 2018 is $220,000 and $260,000. It is obtained by…
Q: Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on…
A: A business combination is a transaction in which a buyer takes over control of another company (the…
Q: On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000…
A: Requirement 1:
Q: On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for…
A: Goodwill refers to excess of value of investment over the fair value of net assets of subsidiary…
Q: lacid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on…
A: A business combination is a transaction in which a buyer takes over control of another company (the…
Q: The Season Co. acquired a 70% interest in the Aloha Inc. for P1,960,000 when the fair value of Aloha…
A: As company choosed to apply net identificable assets/proportionate method
Q: Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on…
A: Consolidate income: When the company is acquired by another company at the fixed percentage of ratio…
Q: January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for…
A: As per IFRS 3 business combination, at the time of acquisition all assets and liabilities are valued…
Q: On January 1, 2020, Pail Corporation acquired 75 percent of Sand Company's common stock for $525,000…
A: As per IFRS a company has to prepare consolidated income statement and balance sheet incorporating…
Q: Legan, Inc., acquired 10 percent of Barta Corporation on January 1, 2017, for $186,000 and…
A: Journal entries are used to record various accounting transactions which was done by the business…
Q: Quark acquired 70% of the 1m issued £1 ordinary shares of Whey on 1 January 20X1 when Whey's…
A: A minority interest seems to be another term for a non-controlling interest. This is a situation…
Q: On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for…
A: Goodwill refers to excess of value of investment over the fair value of net assets of subsidiary…
Q: On January 1, 20x1, John Corp. acquired the identifiable net assets of Jose Corp. by paying cash of…
A: Lets understand the basics. When acquirer acquires the acquiree then they pay the consideration in…
Q: Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on…
A: Consolidated financial statements are a set of financial statements prepared for a group company…
Q: On January 1, 2020, Pail Corporation acquired 80 percent of Sand Company's common stock for $540,000…
A: A consolidated balance sheet is a financial statement that shows the financial positions of a parent…
Q: Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on…
A: SOLUTION- WORKING NOTES- 1-RETAINED EARNING = 88000-64000 - (88000-64000) / 5…
Q: On January 1, 20X1, Par Inc acquires 85.77% of Sub Corp for $211,625 in cash. Immediately before the…
A: 1. Fair value method 2. net assets method
Q: Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on…
A: Disclaimer: As posted multiple sub parts questions we are answering first three sub parts only…
Q: On June 1, 2020, P Co. acquired 80% of the outstanding shares of s Co. at an amount P200,000 less…
A: SOLUTION WORKING NOTES- 1- PARTICULARS PARENT NCI NI-P 646285.71 DIVIDENDS RECEIVED…
Q: On January 1, 2018, Johnsonville Enterprises, Inc., acquired 80 percent of Stayer Company’s…
A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a…
Q: On January 2, 2021, X Co. acquired all the ordinary share of Y Co. for P2,060,000. On that date, Y…
A: Goodwill is calculated when Purchase consideration paid to acquire a company (acquiree) is greater…
Q: Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 10, 2020, Fey Co. acquired a 40% interest in Hana Co. for P4,800,000. Fey already held a…
A: When a company acquires another company, it pays the seller company, and in return, the buyer…
Q: The Lampard Company acquired a 70% interest in The Ohau Company for P1,960,000 when the fair value…
A: Goodwill = Purchase Consideration + Fair Value of NCI - Net Identifiable Assets =…
Q: On 1 January 20X8, Coconut acquired 80% of the share capital of Rice for £100,000 when Rice had…
A: Calculation of Retained earnings balance as on 31 Dec, 2019 in CFS Balance of Retained…
Q: On January 1, Paisley, Inc., paid $560,000 for all of Skyler Corporation’s outstanding stock. This…
A:
Q: On June 30, 2021, Plaster, Inc., paid $876,000 for 80 percent of Stucco Company's outstanding stock.…
A: The cash flow statement represents the cash inflow and cash outflow of the company that includes the…
Q: Par Inc purchased all of the outstanding common shares of Sub Corp for cash of $68,951 on Jan 1,…
A: The question is based on the concept of financial Accounting.
Q: Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: On January 1, 20x1, ABC Co. acquired 75% interest in XYZ, Inc. for P2,500,000 cash. ABC Co. incurred…
A: Goodwill refers to the intangible asset which arises when buyer acquires the existing business.
Q: Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on…
A: 1. If the intra-entity sales were upstream, how would the consolidated net income be allocated to…
Q: On January 1, 20x1, Pine Corp acquired 75% interest in Sine Inc. for P2,400,000. On that date Sine…
A: Non-controlling interests, also known as minority interests, are ownership rights in which…
Q: Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $195,000. The trial…
A: It is one of the important tools, to prepare the consolidated financial statements of patent and…
Q: On January 2, 2021, ABC Co. acquired 80% of XYZ Co. ordinary shares for P810,000. An amount of…
A: The net consolidated profit to be reported by ABC Co. would be adjusted with the impairment loss,…
Q: On June 30, 2021, Plaster, Inc., paid $900,000 for 80 percent of Stucco Company's outstanding stock.…
A: Statement of cash flows is the one prepared by the companies to depict cash inflow/Outflow from…
Q: On January 1, 20x1, ABC Co. acquired 75% interest in XYZ, Inc. for P2,500,000 cash. ABC Co. incurred…
A: At the time of determining the net asset of the subsidiary corporation, the acquiring corporation…
Q: On January 1, 2019, Post Corporation acquired 80 percent of Star Company's common stock for $160,000…
A:
Q: What is the amount of consolidated comprehensive income reported for 20x9? What is the amount of…
A:
Q: Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 20X8, Ramon Corporation acquired 80 percent of Tester Company's voting common stock…
A: Depreciation: It implies to a decrease in fixed asset's value as a result of normal wear & tear,…
Q: On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for…
A: The question is related to Business Combination. The details are as under ABC Corporation Share in…
Q: On January 1, 20x1, ABET Co. purchased 25% interest in the ordinary shares of ENCOURAGE, Inc. for…
A: This question deals with the concept of calculating carrying value of investment and share in profit…
Q: On January 1, 20x1, ABC Co. acquired 75% interest in XYZ, Inc. for P2,500,000 cash. ABC Co. incurred…
A: Goodwill: It is an intangible asset. It is the value of the company over the value of all assets…
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: On January 1, 20x8, Bristol Company acquired 80 percent of Animation Company's common stock for…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2019, Post Corporation acquired 80 percent of Star Company's common stock for $160,000…
A: Given information: Percentage acquired = 80% Acquisition price = $160,000 Net income for 2019 =…
Q: ported net income of $320,000. Placid Lake declared $200,000 in dividends during this period; Scenic…
A: The f1 and f2 is given as,
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: What is the balance of the non controlling interest in Starr at December 31, 2018?
A: Non-controlling Interest
Q: The following transactions occurred for the year ended December 31, 2020 regarding Entity C and its…
A: The following calculations are required for the NCI amount to be reported in the combined income…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which had a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach) Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…
- On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation -80,000 -50,000 Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds payable 95,000 40,000…
- On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…
- On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation -80,000 -50,000 Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds payable 95,000 40,000 Common stock 200,000 40,000…On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp's common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: • On the date of the business combination, the book values of Vaxx Corp's net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach).