On January 1, 2019, ALUCARD Co. acquired 80% interest in BERTHOLD, Inc. by issuing 5,000 shareswith fair value of P15 per share. On this date, BERTHOLD's equity comprised of P50,000 sharecapital and P24,000 retained earnings. NCI was measured at its proportionate share inBERTHOLD's net identifiable assets.BERTHOLD's assets and liabilities on January 1, 2019 approximate their fair values except for thefollowing:Fair valueCarryingFairadjustments(FVA)8,000BERTHOLD, Inc.атоuntsvaluesInventory23,00031,000Equipment (4 yrs. remaininglife)Accumulated depreciationTotals50,00060,00010,000(10,000) (12,000)63,000(2,000)16,00079,000BERTHOLD, Inc. declared and paid dividends of P6,000 during 2019. There was no impairment ingoodwill. The year-end individual statements of profit or loss are shown below:Statements of profit or lossFor the year ended December 31, 2019ALUCARD Co.BERTHOLD, Inc.Sales300,000(165,000)120,000Cost of goods sold(72,000)Gross profit135,00048,000Depreciation expense(40,000)(10,000)Distribution costs(32,000)(3,000)(18,000)Interest expense- |Dividend income4,800Profit for the year64,80020,000How much is the profit attributable toOwners of the parentNCI

The consolidated financial statement refers to the financial statement prepared by the parent…

On January 1, 2019, ALUCARD Co. acquired 80% interest in BERTHOLD, Inc. by issuing 5,000 shares with fair value of P15 per share. On this date, BERTHOLD's equity comprised of P50,000 share capital and P24,000 retained earnings. NCI was measured at its proportionate share in BERTHOLD's net identifiable assets. BERTHOLD's assets and liabilities on January 1, 2019 approximate their fair values except for the following: Fair value Carrying Fair adjustments (FVA) BERTHOLD, Inc. amounts values Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 50,000 60,000 10,000 Accumulated depreciation (10,000) (12,000) 63,000 (2,000) 16,000 Totals 79,000 BERTHOLD, Inc. declared and paid dividends of P6,000 during 2019. There was no impairment in goodwill. The year-end individual statements of profit or loss are shown below: Statements of profit or loss For the year ended December 31, 2019 ALUCARD Co. BERTHOLD, Inc. Sales 300,000 120,000 Cost of goods sold (165,000) (72,000) Gross profit 135,000 48,000 Depreciation expense (40,000) (32,000) (3,000) (10,000) Distribution costs (18,000) Interest expense - | Dividend income 4,800 Profit for the year 64,800 20,000 How much is the profit attributable to Owners of the parent NCI

On January 1, 2019, ALUCARD Co. acquired 80% interest in BERTHOLD, Inc. by issuing 5,000 shares with fair value of P15 per share. On this date, BERTHOLD's equity comprised of P50,000 share capital and P24,000 retained earnings. NCI was measured at its proportionate share in BERTHOLD's net identifiable assets. BERTHOLD's assets and liabilities on January 1, 2019 approximate their fair values except for the following: Fair value Carrying Fair adjustments (FVA) BERTHOLD, Inc. amounts values Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 50,000 60,000 10,000 Accumulated depreciation (10,000) (12,000) 63,000 (2,000) 16,000 Totals 79,000 BERTHOLD, Inc. declared and paid dividends of P6,000 during 2019. There was no impairment in goodwill. The year-end individual statements of profit or loss are shown below: Statements of profit or loss For the year ended December 31, 2019 ALUCARD Co. BERTHOLD, Inc. Sales 300,000 120,000 Cost of goods sold (165,000) (72,000) Gross profit 135,000 48,000 Depreciation expense (40,000) (32,000) (3,000) (10,000) Distribution costs (18,000) Interest expense - | Dividend income 4,800 Profit for the year 64,800 20,000 How much is the profit attributable to Owners of the parent NCI

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8RE: On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the...

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On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brusts 1 par value common are trading at 29.50 per share. The company estimates that the CFO will complete all 4 years of required service with the company. Prepare the journal that Brust should make each year to account for the restricted share units.
On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.
Restricted Share Units On January 2, 2019, Dekker Company grants each of its 15 new employees 200 restricted share units. Each of the time-vested restricted share units entitles the employee to receive one share of Dekker common stock if they remain an employee of the company for 2 years. On January 2, 2019, shares of Dekkers 2 par value common are trading at 52 per share. Dekker estimates that 12 of the 15 employees will complete 2 years of service with the company. At the end of 2020, Dekker reported that four employees left the company before completing the service period. Required: 1. Prepare a schedule of Dekker s computations for its restricted share unit plan for 2019 and 2020 (round all computations to the nearest dollar). 2. Prepare all journal entries for the restricted share unit plan for 2019 and 2020.