On January 1, 2019, Orange Co. purchased 40% of the outstanding ordinary shares of New Company equaled P12,500,000. The difference was attributed to equipment which had a carrying amount of P3,000,000 and a fair market value of P5,000,000 and to building which had a carrying amount of P2,500,000 and a fair value of P4,000,000. The remaining useful life of the equipment and building was 4 years and 12 years, respectively. During 2020, New Company reported net income of P5,000,000 and paid dividends of P2,500,000.   What is the acquisition cost of Orange Co.?

Q: On January 2, 2020, P Company purchased 80% of the outstanding shares of S Company by paying…

A: The net income attributable to the shareholders of the parent entity is determined by deducting the…

Q: On April 30, 2019, Winona Company purchased for cash 18,000 of the 60,000 voting shares of Chico…

A: Goodwill is the amount of excess consideration paid over and above the fair value of the investment…

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Q: Allapacan Company bought 20% of Amulung Corporation's ordinary shares on July 1, 2019 for…

A: Amount to be recognised as Investment income for the Year 2019 is::: Net income…

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A: The following computations are done for ABC Corporation.

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A: SOLUTION ORDINARY SHARES  ARE ALSO KNOWN COMMON SHARES , ARE STOCKS SOLD ON PUBLIC EXCHANGE. EACH…

Q: On January 1 2020, Philippine Airlines purchased 20% of Cebu Pacific's total outstanding ordinary…

A: Introduction: If an investor acquires between 20 to 50% stake in the investee company then it is…

Q: At the beginning of the current year, Big Company purchased 25% of the outstanding ordinary shares…

A: Investments in company for less than 50% is accounted using equity method. Under this method…

Q: lapacan Company bought 20% of Amulung Corporation’s ordinary shares on July 1, 2019 for P20,000,000.…

A: Working note :-                                           Particulars Amount P…

Q: Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on July 1, 2019 for…

A: Annual Depreciation on fair values exceed their carrying amounts = fair values exceed their carrying…

Q: January 1, 2020, Doja Cat Company purchased 80% of the outstanding shares of Da Bhabie Company for…

A: When less than 100% of the shares is acquired in a company, the remaining share is the…

Q: On January 1, 2022, Company A acquired 90% of outstanding ordinary shares of Company B at a price of…

A: Separate Financial Statements (SFS) shall be presented by the Parent entity i.e., an Investor who…

Q: Nizwa Corp maintains the investment account in Al Izz Corp using the equity method. During 2019, Al…

A: Investment balance amount shown is step 2

Q: t for plant and inventory, for which fair values exceed their carrying amounts by P15,000,000 and…

A: The money earned through a rise in the value of investments is known as investment income. Dividends…

Q: BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately…

A: a)

Q: BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately…

A: The equity method is the one that is applied when a company has 20% to 50% of stock ownership…

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of PQR by paying P740,000. On that…

A: Solution: Calculation of parent's portion of retained earnings on 31 December 2022 - Particulars…

Q: Allapacan Company bought 20% of Amulung Corporation's ordinary shares on July 1, 2019 for…

A: Particulars Amount Carrying amount of net assets of Amulung Corp P60,000,000 Add:…

Q: What is the Consolidated net income or group profit for the year ended December 31, 2020? 2). What…

A: Consolidated net income is the combined net income earned by the parent entity from the business…

Q: this date, the c

A: Introduction Investments in company for less than 50% is accounted using equity method. Under this…

Q: On July 1, 2019, Killearn Company acquired 138,000 of the outstanding shares of Shaun Company for…

A: Income earned 2019=Income ×612=$641,000×612=$320,500

Q: Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on January 1, 2020 for…

A: Formula: Depreciation amount = Asset value / Useful life years

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: Allapacan Company bought 20% of Amulung Corporation's ordinary shares on July 1, 2019 for…

A: SOLUTION-   EXPLANATION- AMULUNG PROFIT FOR  2019 = REPORTED PROFIT BY AMULUNG -ADDITIONAL…

Q: On January 1, 2019, Mickey Mouse Co. acquired 20,000 ordinary shares out of the 100,000 outstanding…

A: Here in this question we are required to calculate ending balance share in profit account in 2019.…

Q: On July 1, 2019, Killearn Company acquired 105,000 of the outstanding shares of Shaun Company for…

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Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of PQR by paying P740,000. On that…

A: Working note -1 Calculation of profit on sale of fixed assets from ABC to PQR-…

Q: Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on July 1, 2019 for…

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A: If intercompany transfer of stock is remained as unsold on date of consolidation,then unrealized…

Q: Allapacan Company bought 20% of Amulung Corporation's ordinary shares on July 1, 2019 for…

A: SOLUTION- GOODWILL IS AN INTANGIBLE ASSETS THAT ACCOUNTS FOR THE EXCESS PURCHASE PRICE OF ANOTHER…

Q: Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on January 1, 2019 for…

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

Q: On January 1, 2019, Mickey Mouse Co. acquired 20,000 ordinary shares out of the 100,000 outstanding…

A: This question deals with the concept of calculating carrying value of investment and share in profit…

Q: On January 2, 2022, S Company acquired 80% of the stocks of L Company for P2,000,000. On this date,…

A: Cost of inventory that remained unsold =  $50,000×20% = $10,000

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Q: Assume that, on January 1, 2021, Sycamore Corp. paid $2,040,000 for its investment in 36,000 shares…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: On January 1, 2019, Mickey Mouse Co. acquired 20,000 ordinary shares out of the 100,000 outstanding…

A: Holding % = No. of shares acquired / total no. of shares = 20000 / 100000 = 20%

Q: BuyCo, Inc., holds 23 percent of the outstanding shares of Marqueen Company and appropriately…

A: Part 1:

Q: On January 1, 2019, Mickey Mouse Co. acquired 20,000 ordinary shares out of the 100,000 outstanding…

A: Here in this question we are required to calculate the goodwill on acquisition. When one company…

Q: On January 1, 2021, ABC purchased 90% of the outstanding shares of PQR by paying P740,000. On that…

A: Working note -1 Calculation of profit on sale of fixed assets from ABC to PQR-…

Q: n January 1, 2021, Jimin Co. acquired 30,000 ordinary shares out of the 100,000 outstanding shares…

A: Step 1 Goodwill is Excess of Purchase Consideration over Net Assets and vice versa it lead to…

Q: Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on July 1, 2019 for…

A: Given information, Allapacan Company bought 20% of Amulung Corporation’s ordinary shares on  Amulung…

Q: On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per…

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Q: Allapacan Company bought 20% of Amulung Corporation's ordinary shares on July 1, 2019 for…

A:

Q: On January 1, 2021, Permission to Dance Co. acquired 20,000 ordinary shares out of the 100,000…

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Q: On January 1, 2020, Merlo Company acquired 80% of the stocks of Fritzie Company for P2,000,000. On…

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Q: On January 1, 2019, Mickey Mouse Co. acquired 20,000 ordinary shares out of the 100,000 outstanding…

A: When-ever the purchase price is higher than the fair value of asset which has been purchased then…

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A: SOLUTION NET INCOME REFERS TO THE AMOUNT AN INDIVIDUAL OR BUSINESS MAKES AFTER DEDUCTING COSTS ,…

Q: Assume that, on January 1, 2021, Carnival Corporation paid $2,320,000 for its investment in 33,000…

A: Stock is one of the options to collect the funds from the investors. Different individuals of firms…

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.