On January 1, 2019, NANA Co. sells 60% out of its 80% interest in SASHA, Inc. for ₱100,000. NANA’s remaining 20% interest in SASHA has a fair value of ₱25,000. This gives NANA significant influence over SASHA. The statements of financial position immediately before the sale are shown in the image, how much is the gain (loss) on the disposal? On January 1, 2019, NANA Co. sells 60% out of its 80% interest in SASHA, Inc. for P100,000.NANA's remaining 20% interest in SASHA has a fair value of P25,000. This gives NANA significantinfluence over SASHA. The statements of financial position immediately before the sale areshown below:Statements of financial positionAs at January 1, 2019NANA Co. SASHA, Inc. ConsolidatedASSETSCash23,00057,00080,000Accounts receivable75,00022,00097,000Inventory105,00015,000120,000Investment in subsidiary75,000EquipmentAccumulated depreciation200,000260,000(84,000)50,000(60,000)(20,000)Goodwill3,000TOTAL ASSETS418,000 124,000476,000LIABILITIES AND EQUITYAccounts payableBonds payableTotal liabilitiesShare capital43,00030,00073,00030,00030,00073,00030,000103,000170,00050,000170,000Share premiumRetained earningsNon-controlling interestTotal equityTOTAL LIAB. & EQTY.65,00065,000110,00044,000118,00020,000345,00094,000373,000418,000124,000476,000How much is the gain (loss) on the disposal?

When the parent disposes off a controlling stake in a subsidiary then the group needs to derecognize…

Answered: On January 1, 2019, NANA Co. sells 60%…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 37RQSC

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On January 1, 2019, NANA Co. sells 60% out of its 80% interest in SASHA, Inc. for ₱100,000. NANA’s remaining 20% interest in SASHA has a fair value of ₱25,000. This gives NANA significant influence over SASHA. The statements of financial position immediately before the sale are shown in the image, how much is the gain (loss) on the disposal?

On January 1, 2019, NANA Co. sells 60% out of its 80% interest in SASHA, Inc. for P100,000.
NANA's remaining 20% interest in SASHA has a fair value of P25,000. This gives NANA significant
influence over SASHA. The statements of financial position immediately before the sale are
shown below:
Statements of financial position
As at January 1, 2019
NANA Co. SASHA, Inc. Consolidated
ASSETS
Cash
23,000
57,000
80,000
Accounts receivable
75,000
22,000
97,000
Inventory
105,000
15,000
120,000
Investment in subsidiary
75,000
Equipment
Accumulated depreciation
200,000
260,000
(84,000)
50,000
(60,000)
(20,000)
Goodwill
3,000
TOTAL ASSETS
418,000 124,000
476,000
LIABILITIES AND EQUITY
Accounts payable
Bonds payable
Total liabilities
Share capital
43,000
30,000
73,000
30,000
30,000
73,000
30,000
103,000
170,000
50,000
170,000
Share premium
Retained earnings
Non-controlling interest
Total equity
TOTAL LIAB. & EQTY.
65,000
65,000
110,000
44,000
118,000
20,000
345,000
94,000
373,000
418,000
124,000
476,000
How much is the gain (loss) on the disposal?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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