On January 1, 2021 Major acquired 60% of Minor for a cash payment of $600,000.  At date of acquisition, the fair value of Minor's net assets were $300,000.  Assuming there is no control premium, how much Goodwill is recorded in the consolidated financial statements     $420,000     $300,000     $700,000     $60,000

Q: On January 1, 2020, Erika Company (Erika) purchased 62% interest in Finn Limited (Finn) for…

A: Depreciation on equipment over  5 years (2016 - 2020) = $2300000 x 5years/ 10 years = $1150000 book…

Q: On January 2, 2021, Harry Co. acquired 60% interest in Louis Corp. for P360,000. Information on…

A: Consolidation indicates a situation where two corporations combined their resources through…

Q: On January 1. 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $180,000 in…

A: A consolidated financial statement is inclusive of all the subsidiary companies where the owner has…

Q: On January 1, 2020, P Company purchased 32,000 shares of the 40,000 outstanding shares  of S Company…

A: Net Assets: Net Assets are the amounts which is determined as the difference between total assets…

Q: On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation…

A: Introduction Goodwill is considered as an intangible assets that is linked with purchasing of one…

Q: On January 1, 2019, Field Company acquired 40% of North Company by purchasing 10,000 shares for…

A: Equity method is an accounting technique of recording the financial transactions related to…

Q: Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1,…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: ProForm acquired 70 percent of ClipRite on June 30, 2017, for $910,000 in cash. Based on Clip-…

A:

Q: Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1,…

A: Consolidation worksheet is prepared in order to use the same for preparing the consolidation…

Q: On September 1, 2019, Simon Corporation acquired Jumbo Enterprises for a cash payment of OMR…

A: For calculating good will, fair value of asset should be used. Book value of asset should be…

Q: On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,712,000 in cash…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On January 1, 2020, Shell Corporation acquired the net assets of Petron Inc. The acquirer…

A: 1. Value of contingent consideration shall be the additional pay of P 1500000 which would be paid if…

Q: PAR Inc. purchased 70% of SUBS Inc. on January 1, 2020 for $2,100,000. SUBS's common shares and…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: On January 1, 2019, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on…

A: A consolidation worksheet is a spreadsheet that is used to create annual financial reports for a…

Q: Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2011, when Salt…

A: Net income is defined as the amount which remains with the business after it has provided for the…

Q: Permata Corporation acquired 60% of Akik Corporation on January 1, 2019, at a cost of…

A: Non-controlling interest refers to the shareholders of an entity who can not control the entity due…

Q: ProForm acquired 70 percent of ClipRite on June 30, 2020, for $770,000 in cash. Based on ClipRite's…

A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Priya Corporation acquired 90 percent of Sheldon Company on January 1, 2020 for $760,500 cash. The…

A: Goodwill =  Purchase Consideration + Fair Value of Non Controlling Interest - Fair Value of Net…

Q: On January 1, 2020, Pail Corporation acquired 80 percent of Sand Company's common stock for $540,000…

A: A consolidated balance sheet is a financial statement that shows the financial positions of a parent…

Q: On January 1, 2021, Casey Corporation exchanged $3,218,000 cash for 100 percent of the outstanding…

A: In Simple words, a consolidated balance sheet is a collection of financial information from all of a…

Q: Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January…

A: Acquisition accounting is a set of formal guidelines which defines how assets liabilities,NCI and…

Q: Gino Company acquired 30% of ABC Corporations share for P8,000,000 on July 1, 2020. ABC…

A: 1. On 01.07.2020, Eddie company acquired shares of ABC company = 30% Purchase consideration =…

Q: Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 2011, when Salt…

A: Net income is referred to as the amount which a business owns after it has paid for the current…

Q: Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January…

A: Book value                                     690,000 Excess of fair over book value.  435,000…

Q: On January 3, 2021, Matteson Corporation acquired 40 percent of the outstanding common stock of…

A: Calculation under Equity method:

Q: On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,712,000 in cash…

A: Acquisition: The acquisition refers to the business combination when one entity or organization…

Q: On January 1, 2021 Major acquired 60% of Minor for a cash payment of $600,000. At date of…

A: Formula: Goodwill = Purchase price - Fair value of Assets

Q: On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $300,000 when K-Tech's…

A: Net Income = Revenue - Expenses 1) Net income of French Company = 900000 - 500000 = $ 400000 2) Net…

Q: Stattgrue Ltd obtains control of Naonite Ltd through two cash acquisitions. At July 1, 2018…

A: What is meant by acquisition? When one company purchases other company's shares and assets in order…

Q: On September 1, 2019, Winans Corporation acquired Aumont Enterprises for a cash payment of £800,000.…

A: Given, Purchase consideration of £800,000 Assets fair value is £800,000 Liabilities amounts to…

Q: Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on…

A: The financial statements of a group of entities that are presented as if they were a single economic…

Q: On September 1, 2018. Vernon Corporation acquired Barlow Enterprises for a cash payment of 5820.000.…

A: Answer: Part 1: Part 2: The fair value of the Reporting unit = 720,000. Carrying amount of Borlow =…

Q: September 1, 2020, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At…

A:

Q: ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRite’s…

A: The income statement shows the net income or loss that is calculated by deducting the expenses from…

Q: Plum Corporation acquired 80% of Slum Co. for P 5,000,000 on January 2, 2019. On this date, Slam Co.…

A:

Q: Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on…

A: COGS stands for Cost of Goods Sold which are located in Trading A/c.In simple words it is the price…

Q: Putnam Company owns 80 percent of Swaraj Company. The excess of acquisition cost over book value was…

A: Inter-company transactions are the one which take place between two companies which are…

Q: On January 2, 2021, ABC Co. acquired 60% interest in DDD Corp. for P360,000. Information on DDD…

A: At the time of acquisition identified assets and liabilities are recorded in the books of the parent…

Q: On January 2, 2021, ABC Co. acquired 60% interest in DDD Corp. for P360,000. Information on DDD…

A: The merger is a process in which the acquirer company obtains control over the acquiree company.…

Q: ompany's net assets. P13,000 of the excess is attributed to an undervalued equipment with a…

A:

Q: How much is the consolidated profit?

A: The question is related to Consolidated Financial Statement. The parent company (Harry co.) has…

Q: Reuniclus Company acquired 55% of the outstanding common stock of Vanillite Company on August 1,…

A: To identify net income attributable to non controlling interest, first we should identify post…

Q: On January 3, 2018, Matteson Corporation acquired 40 percent of the outstanding common stock of…

A: Equity method:   Equity method is the method used for accounting equity investments which claim a…

Q: Gino Company acquired 30% of ABC Corporations share for P8,000,000 on July 1, 2020. ABC…

A: As per the equity method, the investment is recognized at cost and thereafter the value changes as…

Q: ProForm acquired 70 percent of ClipRite on June 30, 2020, for $770,000 in cash. Based on ClipRite's…

A: Answer AS FOR GIVEN DATA... All the balances have been calculated as affected by downstream…

Q: Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 2018. At that date,…

A: Purchase consideration: $152,000 Book value of net assets acquired: $80,000 Balance sheet fair value…

Q: On September 1, 2020, Flint Corporation acquired Tamarisk Enterprises for a cash payment of…

A: Goodwill is an intangible asset of the company which arises when the payment made for acquiring the…

Q: ClipRite (600,000) 400,000 100,000 0 $ (100,000) (850,000) (100,000) 50,000 (900,000) 300,000…

A: Inventory Costing: When organisations assign costs to things, they use inventory costing, often…

Q: On January 4, 2021, Jonathan Company purchased 75% interest in Monica Corporation for P300,000.…

A: