On January 1, 2021, Flesh-n-Bone Corporation acquired 30% of Doug Corporation's 200,000 outstanding shares at P50 per share. Doug's net assets had a book value on the same date at P8,200,000. On the acquisition date, the following assets were deemed understated: Building having a remaining useful life of 20 years was understated by P1,500,000. Equipment having a remaining life of 10 years was understated by P500,000. Doug reported net income for the year at P2,000,000 and paid cash dividends of P10 per share by December 31. 20. How much investment income should be reported in Flesh-n-Bone Corporation's profit or loss for 2021? a. 600,000 b. 577,500 c. 622,500 d. 562,500 21. What is the carrying amount of the investment in Doug as of December 31, 2021? a. 3,562,500 b. 3,000,000 3.622.500
Q: 7. The portion of a group purchase of $640,000 allocated to land when the land is appraised at…
A: The total purchase price paid to acquire different fixed assets is allocated to the assets on the…
Q: An advance payment of $1,000 for services was received on December 1 and was recorded as a…
A: The journal entries are prepared to record the transactions on a regular basis. The adjustment…
Q: Use the following inventory table to find the cost of goods sold using the last-in, first-out (LIFO)…
A: "Since you have asked multiple questions, the first question was answered for you. If you want the…
Q: Pureform, Incorporated, uses the weighted-average method in its process costing system. It…
A: EQUIVALENT UNITS PRODUCTIONEquivalent units represent the total amount of production work completed…
Q: nku.3
A: Treasury Stock is the stock purchased by the organization from the open market. It can be either…
Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…
A: Assets that are directly used to generate revenue and have a useful life longer than a year are…
Q: The following information comes from the accounting records of Wildhorse Ltd.: Statement of…
A: Profitability ratios are used to measure and evaluate the ability of a company to generate income…
Q: Big Al's Inc. produces and sells various cuts of steak, including sirloin, ribeye, and T-bone. The…
A: "Joint Allocation" typically refers to the distribution or assignment of resources, expenses,…
Q: Problem 6-5 (IAA) Persia Company is a dealer in equipment. On January 1, 2023, the entity sold an…
A: A non-interest bearing note, also known as a zero-coupon bond, is a type of debt security that does…
Q: Mostert Music Company had the following transactions in March: a. Sold music lessons to customers…
A: A more accurate view of actual cash inflows and outflows is given by the cash basis. This can be…
Q: Smithson Electric provides residential and business electric... [The following information applies…
A: The objective of the question is to calculate Smithson's predetermined overhead rate, the amount of…
Q: Dengar
A: The objective of the question is to calculate the dividend payout ratio for Dengar Corporation for…
Q: Sloan Trailers' job cost records yielded the following information: View the job cost information…
A: JOB COSTING Job costing is widely used to determine the cost and revenue from job performed and that…
Q: 1. What is a segment of an organization? Give a few examples of segments of Walmart Corporation.
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: Required information Gable Company uses three activity pools. Each pool has a cost driver.…
A: A = 81,728B = 121,834C = 78,761Explanation:MachiningPredetermined overhead rate = Total cost of pool…
Q: Required: 1. For each of the events (a) through (c), indicate the amount and direction of the effect…
A: The cash discount terms are 2/10, n/30The payment has been made by party on 5th day (2+3) after…
Q: Required information. [The following information applies to the questions displayed below.] In…
A: Individual who make contributions to the charitable institute through cash or poperty can claim…
Q: Willis Corporation issued 500,000 shares of $0.50 par value capital stock at its date of…
A: Common Stock is the shares issued by the organization to the common shareholders. They are recorded…
Q: Rahul
A: The objective of the question is to estimate the cost of the merchandise inventory as of August 31,…
Q: A company has two service departments, S1 and S2, and two production departments, P1 and P2.…
A: Dear student, check the answer in the explanation box below.Explanation:Part 1:Answer:To determine…
Q: On January 1, Big Company acquires all of the common stock of Little Company by issuing 400,000…
A: When one company (investor) invests in another company (investee), the accounting treatment required…
Q: JT Engineering makes widgets. Widgets first go through Smelting and then go through Polishing. JT…
A: Process costing is a method used to assign costs to each stage or process in the production of goods…
Q: A series of equal periodic payments in which the first payment is made one compounding period after…
A: The objective of the question is to identify the type of annuity based on the timing of the first…
Q: The T. L. Lin Company manufactures a variety of natural fabrics for the clothing industry in a…
A: Process costing is one of useful costing system being used in business. This is used in industries…
Q: On May 25, Mt. Wildhorse Company received a $646 check from Douglas Fir for services to be performed…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: On December 31, 2024, the end of the fiscal year, California Microtech Corporation held its…
A: The income statement shows the financial position of the company whether the business is making a…
Q: Maddie's Place Corporation deposits $100,000 at the beginning of every quarter in a savings account…
A: The objective of this question is to calculate the future value of a series of quarterly deposits…
Q: a) Determine the true cash balance as of November 30.
A: True cash balance: The process of precisely estimating the real amount of cash accessible within the…
Q: Clear Water Company reports the following balance sheet accounts as of December 31. Buildings $…
A: A balance sheet is a financial statement that displays the assets, liabilities, and equity held by…
Q: [The following information applies to the questions displayed below.] Diego Company manufactures one…
A: Break even point is that level of sales where there is neither profit nor loss i.e. the company is…
Q: Hardev
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: A year ago your Aunt Sheri deposited $ 1 comma 000 in a bank account. One year later, there was $ 1…
A: To find the Annual Percentage Rate (APR) compounded monthly, we can use the formula for compound…
Q: Costs per equivalent uni of direct materials and conversion included in the June 1 beginning work in…
A: Cost per equivalent unit:Direct materialConversion1Opening…
Q: Indigo Cosmetics acquired 10% of the 193,000 shares of common stock of Martinez Fashion at a total…
A: Method of recording financial transactions in the book of original entry by debiting and crediting…
Q: For year ended 31, Dec, 2022, Revenues are $ 8 m, gross profit is $ 4m, operating profit is $ 3m,…
A: The correct answer is c. 50%Explanation:Gross margin tells you the percentage of revenue a company…
Q: Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December…
A: Income Statement is a financial statement that includes revenue earned and expenses incurred during…
Q: The Whistling Straits Corporation needs to raise $60 million to finance its expansion into new…
A: Cash offer is a proposal by one company to buy another company's outstanding shares from its…
Q: You have the following information for Ivanhoe Inc. for the month ended October 31, 2025. Ivanhoe…
A: First-in First-Out Method - Under the First-in First-Out Method company uses inventory in the…
Q: Mary Ellis owns a small manufacturing company and would like to develop more accurate estimates for…
A: The cost per hour and the fixed cost per month from the total cost to segregate those two from the…
Q: Which of the following is a method used to allocate overhead costs based on the activities that…
A: A) Job costingJob costing involves the accumulation of the costs of materials, labor, and overhead…
Q: Which of the following cash flows would be included under the operating activities secton of the…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Blossom Home Inc., a real estate developing company, was accounting for its long-term contracts…
A: Retained earnings are defined as the profits saved by an entity since its inception. These…
Q: Campbell Manufacturing Company produced 1,400 units of inventory in January Year 2. It expects to…
A: The objective of the question is to calculate the predetermined overhead rate and the cost of the…
Q: Required information [The following information applies to the questions displayed below.] The…
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Q: Solomon Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour.…
A: The activity rate is the rate used to allocate the manufacturing overhead to various products or…
Q: Alpesh
A: Retirement Benefit -The primary components of retirement benefits are the amount that employees…
Q: Como Company borrowed $5300 from its bank. Como will repay $7800 in five years. What is the…
A: The objective of the question is to find the approximate interest rate that Como Company will incur…
Q: Wasup Corp. is thinking of borrowing $190,000 from its bank at 8% annual interest rate. The amount…
A: The objective of the question is to determine the number of years it will take for Wasup Corp. to…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: An employee is required to use her own automobile for employment duties. She acquired a new car at…
A: An auto deduction is a tax deduction that can be claimed by a taxpayer for expenses related to the…
Step by step
Solved in 3 steps
- On January 2, 2021, E Company acquired 20% of the outstanding ordinary shares of T Company for P700,000.00. This investment gave E Company the ability to exercise significant influence over T Company. The book value of the acquired shares was P600,000.00. The excess of cost over book value was attributed to a depreciable asset which was undervalued on T Company's balance sheet and which had ten years useful life remaining. For the year ended December 31, 2021, T Company reported net income after tax of P180,000.00 and paid cash dividends of P60,000.00 on its ordinary. Income tax rate is 32%. How much is the carrying value of E Company's investment in T Company at December 31, 2021? P678,000.00 P690,000.00 P714,000.00 P717,200.00On January 2, 2020, Kent Corp. paid 1,600,000 for the purchase of 40% of the ordinary shares of Kara Company. The statement of financial position of Kara at the date of acquisition shows the following information:Assets subject to depreciation (remaining useful life is 8 years) 2,400,000Assets not subject to depreciation 800,000Liabilties 400,000Both book value and fair value are the same for assets not subject to depreciation and liabilities. The fair market value of Karas assets subject to depreciation is 2,720,000. Kara depreciates its assets using the straight-line method. Karas intangibles are amortized over a 20-year period. Net income for the year ended December 31, 2020, is 640,000. It declares and pays dividends of 500,000 in 2020.What amount of the investment cost is attributable to goodwill? a. 480,000 b. 352,000 c. 608,000 d. 128,000On March 31, 2021, JISOO Company purchased 32,000 shares of the 40,000 outstanding shares of ROSECompany at a price of P1,200,000 with an excess of P30,000 over the book value of ROSE Company’snet assets. P13,000 of the excess is attributed to an undervalued equipment with a remaining usefullife of 10 years from the date of acquisition and the rest of the amount is attributed to goodwill. Forthe year 2021, JISOO Company reported a net income of P750,000 and paid dividends of P180,000.While ROSE Company reported a net income of P240,000 which was evenly earned during the yearand paid dividends to JISOO Company amounting to P39,000. Goodwill was not impaired in 2021.The retained earnings of JISOO Company at the end of 2021 per books is P1,025,000. JISOO Companyuses the cost method to account for its investment in ROSE Company. Non-controlling interest ismeasured at fair market value. Requirement:Compute for the non-controlling interest in net assets on December 31, 2021.
- On January 2, 2019, ABC Co. acquired 80% of the outstanding common stock of Shade Co. for ₱1,344,000 with no goodwill resulting from the acquisition. The following selected account balances were taken from the accounting records of XYZ Co. Details shown doe XYZ Co. in the image. The building has an estimated useful life of 10 years and the equipment is expected to last for 5 years. For the year 2019, ABC Co. reported net income from own operations of ₱2,240,000 and XYZ Co. reported ₱600,000 net income from own operations. ABC Co. accounts its investment in XYZ Co. using the cost method. What is the consolidated income statement for the year 2019. NCI in the consolidated FS for the year 2019.On January 3, 2021, ABC acquired 60% of the outstanding shares of JKL an excess of cost over book value of P3,000,000. This excess was allocated to property, plant and equipment with 10 years of estimated useful life which half was already use. For the year ended December 31, 2022, JKL prepared the following condensed financial statements: Statement of Financial Position Current Assets P2,250,000 Liabilities P1,000,000 Plant and 12,500,000 Share Capital Property, Equipment, net 8,500,000 Accumulated Profits 5,250,000 Total P14,750,000 Total P14,750,000 图 Statement of Accumulated Profits Accumulate Profits, Beg P5,000,000 Sales P2,500,000 Cost of Goods Sold (1,250,000) (750,000) P500,000 Operating Expenses Net Income (250,000) | P5,250,000 Dividends Accumulated Profits, End JKL regularly sells merchandise to ABC at a price of 120% of cost. In 2021 and 2022, sales from JKL to ABC are as follows: Sales-2021 for P2,100,000 (inventory sold by ABC 1,800,000) ; Sales -2022 P1,200,000…On January 1, 2020, P Company purchased 32,000 shares of the 40,000 outstanding shares of S Company at a price of P1,2000,000 with an excess of P30,000 over the book value of S Company’s net assets. P13,000 of the excess is attributed to an undervalued equipment with a remaining useful life of eight years from the date of acquisition and the rest of the amount is attributed to goodwill. For the year 2020, P Company reported a net income of P750,000 and paid dividends of P180,000. While S Company reported a net income of P240,000 and paid dividends to P Company amounting to P39,000. Goodwill has not impaired in 2020. The retained earnings of P Company at the end of 2020 per books is P1,025,000. P Company uses the cost method to account for its investment in S Company. Non-controlling interest is measured at fair market value.What is the non-controlling interest in net assets?a. 339,875b. 337,925c. 334,525d. 336,475
- On January 1, 2020 ABC Corp. acquired 60,000 shares of the 200,000 shares outstanding of XXX Inc. at P25 per share. The company incurred P2 transaction per share. The book value of XXX Inc.’s net assets on this date amounted to P5,000,000. All other identifiable assets had fair value approximating their book values except for the Equipment having a remaining useful life of 8 years which had a fair value of P160,000 higher than book value. XXX Inc. reported total net income in 2020 at P800,000 and distributed dividends at year-end How much is the carrying value of investment on December 31, 2020? a. 1,764,000 b. 1,770,000 c. 1,750,000 d. 1,644,000 How much is the total net amount that should be reported in profit or loss for the year 2020? a. 240,000 b. 220,000 c. 206,000 d. 234,000On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000. The equipment has a five year estimated remaining life. Barre reported net income of $250,000, $270,000 and $310,000 in 2020, 2021, and 2022, respectively. Republic received dividends from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and 2022, respectively. Assume that Republic uses the cost method to account for its investment in Barre. Compute the [ADJ] consolidating entry necessary for 2021. Select one: a. $155,750 b. $205,000 c. $320,750 d. $165,000 e. $245,750 x Your answer is incorrect. The correct answer is: $155,750On January 1, 2022, P Company purchased 64,000 shares of the 80,000 outstanding shares of S Company at a price of P1,200,000, with an excess of P30,000 over the book value of S Company's net assets. P13,000 of the excess is attributed to an undervalued equipment with a remaining useful life of eight years from the date of acquisition and the rest of the amount is attributed to goodwill. For the year 2022, P Company reported a net income of P750,000 and paid dividends of P180,000, while S Company reported a net income of P240,000 and paid dividends to P Company amounting to P39,000. The retained earnings of P Company at the end of 2022 per books is P1,025,000. P Company uses the cost method to account for its investment in S Company and elected to measure non-controlling interest at fair value on date of acquisition. How much is the consolidated net income attributable to controlling interests?
- Assume that, on January 1, 2021, Sycamore Corp. paid $2,040,000 for its investment in 36,000 shares of Starfish Inc. Further, assume that Starfish has 120,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Starfish's identifiable net assets was $7,060,000, and the fair value of Starfish was $10,000,000. The difference between Starfish's fair value and the book value of its identifiable net assets is attributable to $1,950,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Starfish during 2021: Net Income $600,000 Dividends declared and paid $360,000 Market price of common stock on 12/31/2021 $ 80/share What amount would Sycamore Corp. report in its year-end 2021 balance sheet for its investment in Starfish Inc.? Multiple Choice $2,074,875. $2,220,000.…Assume that, on January 1, 2021, Carnival Corporation paid $2,320,000 for its investment in 33,000 shares of Sphinx Inc. Further, assume that Sphinx has 110,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Sphinx's identifiable net assets was $7,340,000, and the fair value of Sphinx was $10,000,000. The difference between Sphinx's fair value and the book value of its identifiable net assets is attributable to $1,850,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Sphinx during 2021: Net Income $ 400,000 Dividends declared and paid $ 240,000 Market price of common stock on 12/31/2021 $ 80 /share What amount would Carnival Corporation report in its year-end 2021 balance sheet for its investment in Sphinx Inc.?On January 2, 2019, Peace Co. acquired 80% of the outstanding common stock of Shade Co. for ₱1,344,000 with no goodwill resulting from the acquisition. The following selected account balances were taken from the accounting records of Shade Co. BV FV Building 12,000,000 12,400,000 Machinery 620,000 500,000 The building has an estimated useful life of 10 years and the equipment is expected to last for 5 years. For the year 2019, Peace Co. reported net income from own operations of ₱2,240,000 and Shade Co. reported ₱600,000 net income from own operations. Peace Co. accounts its investment in Shade Co. using the cost method. What is the consolidated income statement for the year 2019.