Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: As an independent case, assume that the goodwill is impaired by P5,000 by December 31, determine the net income/(net loss) attributable to the controlling interest. Your answer

On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: As an independent case, assume that the goodwill is impaired by P5,000 by December 31, determine the net income/(net loss) attributable to the controlling interest. Your answer

Intermediate Accounting: Reporting And Analysis
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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
See similar textbooks
icon
Related questions
Question

On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash consideration. The remaining 40 percent of XYZ had an acquisition date fair value of P138,500. On January 1, XYZ possessed equipment (5-year life) that was undervalued on its books P25,000. XYZ also had developed several secret formulas that ABC assessed at P50,000. Theses formulas, although not recorded on XYZ's financial records, were estimated to have a 20-year future life. ABC also determined that the inventory of XYZ is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows:

As an independent case, assume that the goodwill is impaired by P5,000 by December 31, determine the net income/(net loss) attributable to the controlling interest.
Your answer
 
 
 
 
АВС XYZ Revenues (from sales and dividends) Cost of goods sold Expenses Net Income P (300, 000) P (200, 000) 140, 000 20, 000 P (140, 000) 80, 000 10, 000 P (110, 000) Retained eamings 1/1 P (300, 000) (140, 000) P (150, 000) (110, 000) 10,000 P (250, 000) Net Income Dividends paid Retained eamings 12/31 -0- P (440, 000) P 210, 000 150, 000 301,500 Cash and Receivables P90, 000 110, 000 Inventory Investment in SS -0- Equipment (net) Total Assets 398,500 P 1,060, 000 300, 000 P500, 000 P (420, 000) (200, 000) (440, 000) P (1,060,000) Liabilities P (150, 000) (100, 000) (250, 000) P (500, 000) Common stock Retained earmings 12/31 Total Liabilities and Equities
Transcribed Image Text:АВС XYZ Revenues (from sales and dividends) Cost of goods sold Expenses Net Income P (300, 000) P (200, 000) 140, 000 20, 000 P (140, 000) 80, 000 10, 000 P (110, 000) Retained eamings 1/1 P (300, 000) (140, 000) P (150, 000) (110, 000) 10,000 P (250, 000) Net Income Dividends paid Retained eamings 12/31 -0- P (440, 000) P 210, 000 150, 000 301,500 Cash and Receivables P90, 000 110, 000 Inventory Investment in SS -0- Equipment (net) Total Assets 398,500 P 1,060, 000 300, 000 P500, 000 P (420, 000) (200, 000) (440, 000) P (1,060,000) Liabilities P (150, 000) (100, 000) (250, 000) P (500, 000) Common stock Retained earmings 12/31 Total Liabilities and Equities
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Intangible assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS