On January 1, 2022, Padme Corporation acquired another 18,000 common shares of Skywalker Company for $12 each. The book values of Skywalker’s net assets were equal to fair values except for specialized equipment, which was understated by $16,000. The equipment had an estimated remaining life of 8 years. During 2022, Skywalker reported net income of $85,000 and paid dividends of $12,000. At December 31, 2022, the fair value of Skywalker’s shares was $16 per share . REQUIRED: b) Prepare the journal entries on the books of Padme Corporation for the investment in Skywalker for the 2022 fiscal year.

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A: Shares refer to the unit of ownership in an organization. Shares are issued to raise funds against…

Q: On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding…

A: Here in this question, we are required to calculate implied goodwill from acquisition. When acquirer…

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A: The consolidated financial statement may be defined as the year-end financial statement prepared by…

Q: On January 1, 2020, Chico Company purchased 10% of Winona Company’s outstanding ordinary shares for…

A: Introduction: If an investor owns between 20% to 50% of shares of the investee company, it is…

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A: The consolidated income is determined by combining the incomes of both parent and subsidiary’s…

Q: What amount should Justine Company report as investment in associate on December 31, 2020?

A: Justine Company, an SME, bought 20% of another entity’s ordinary shares on January 1, 2020 for…

Q: On January 1, 2022, P Corp. purchased 80% of S Co.'s P10 par ordinary shares for P986,000. On this…

A: P Corp bought 80 percent of S Corp's stock. It signifies that the remaining 20% of the shares have a…

Q: On February 28, 2022, P Corp. purchased 80% of S Co's P10 par ordinary shares for P986,000. On this…

A: Given information, Net income =P354,000 Dividends=P112,000 Inventory overvalued =P15,000 Increase in…

Q: On July 1, 2020, GREEN Company acquired 20% of the outstanding ordinary shares of another entity for…

A: Investment can be defined as allocation of excess fund for gaining returns in future. The investment…

Q: On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker…

A: a.

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

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A: As per the answer guideline, question no. 1 is solved. P Corp purchased 80% of S corp shares. It…

Q: On July 1, 2020, GREEN Company acquired 20% of the outstanding ordinary shares of another entity for…

A: Subsidiary Company -:A Subsidiary company subsidiary is simply a company or also referred to as a…

Q: On July 1, 2019, Killearn Company acquired 124,000 of the outstanding shares of Shaun Company for…

A:

Q: On January 1, 2019, Orange Co. purchased 40% of the outstanding ordinary shares of New Company…

A: The value which is paid to acquire the other company’s net assets is referred to as the acquisition…

Q: Twilight Co. paid $2,800,000 to acquire all of the common stock of Aurna Corp. on January 1, 2022.…

A: In the preparation of consolidated financial statements, all inter-company (within the group)…

Q: On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. The consideration…

A: Solution Working note -   1- NCI beginning  750000 NCI income  534750 NCI share dividend…

Q: On July 1, 2021, Bird Inc, a private enterprise, acquired 1,250 shares of Duckltd. tot 375, 000.…

A: Introduction: Financial transactions are tracked using journal entries. You enter transaction…

Q: On January 1, 2018, Enron Company purchased for cash 40 percent of Walt Company’s 450,000 shares of…

A:

Q: On July 1, 2020, GREEN Company acquired 20% of the outstanding ordinary shares of another entity for…

A: Investment income is the income generated on the investment made by the company in the other company…

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 January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding…

A: Holding % = No. of shares acquired / total no. of shares = 30000 / 100000 = 30%

Q: On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding…

A: Holding % = No. of shares acquired / total no. of shares = 30000 / 100000 = 30%

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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…

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A: Consolidated financial statement includes the components of financial statements to be prepared for…

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A: Solution Goodwill is an intangible asset. It is generated by having good name , reputation in the…

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

Q: On May 1, 2021, P Corp. purchased 75% of S Co.’s P10 par ordinary shares for P990,000. On this date,…

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Q: stment in associate on December

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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: 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…

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A: Part 1:

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Q: On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding…

A: The carrying amount of investment is adjusted by the cost of acquisition followed by payment of cash…

Q: On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. The consideration…

A: Solution Consolidated net income is the sum of net income of the parent company excluding any income…

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A: 1.Journal entries--year 2018

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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…

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.