On January 2, 20X1, Entity X purchases 75% of the common stock of Entity Y for P250,000. Entity Y has P200,000 and P50,000 common stock and retained earnings, respectively. On December 31, 20X1, PC sold equipment to SC for P80,000. The equipment generally cost PC P120,000 when purchased four (4) years ago. Moreover, it is depreciated over its life of 10 years using the straight-line method with no residual value. The companies have the following data for years 20X1 and 20X2:

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…

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: Direction: Analyze the case and give what is asked. On January 2, 20X1, Entity X purchases 75% of…

A: In consolidated financial statements, the unrealized gains on the transactions between the group…

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: Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,…

A: Equity accounting: Equity accounting is a process for recording investments in associated companies.…

Q: What is the consolidated amount of machinery on December 31, 20x1? ans. 500,000 2. What is the…

A: Answer:

Q: On January 1, 20x2, Pfieter Company purchased 80 percent of the outstanding shares of Sedrosky…

A: The question is related to Consolidated Financial Statements. Required  Prepare the elimination…

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 January 1, 20x1, ABC Company acquired 80% of XYZ Company's common stock for 275,000 cash. At that…

A: Net income:- Net income is also considered as the net earnings of the business that represents money…

Q: On January 1, 20x1, Puno Inc. acquired 80% interest in Dong Company. During 20x2, Puno and Dong…

A: Business combination refers to the agreement or contract between two companies, acquirer and…

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: What should ABC report as investment income?

A: Investments: An investment is considered an asset. It is an amount invested by the investor in PPE…

Q: On January 1, 20x2, Pfieter Company purchased 80 percent of the outstanding shares of Sedrosky…

A: Consolidated financial statements are the financial statements of a group consisting of multiple…

Q: Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,…

A: Journal entry is a record of financial transactions in the books of accounts of a business. It…

Q: On July 1, 20X1, ABC acquired 25% of the outstanding ordinary shares of Yellow Corp at a total cost…

A: Introduction: When an investor company invests in an investee company for acquiring more than 20% of…

Q: Harper,  Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,…

A: When there is an intra-company transaction and the closing inventory of parent or subsidiary company…

Q: On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years.…

A: Consolidation net income: - It is the income of a company, which is the result of all the revenues…

Q: ABC owns 30% of MELY, which it purchased on 1 January 20X7 for $5,000,000. At that date, MELY had…

A: The corporation which has substantial amount of investment in other corporation is called parent…

Q: n January 1, 20X1, Como Company purchased 45% of the outstanding common shares of the Lite Company…

A: Inventory includes both raw materials used in production and finished goods that are ready for sale.…

Q: On January 1, Year 4, Grant Corporation bought 8,000 (80%) of the outstanding common shares of Lee…

A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…

Q: Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,…

A: Journal Entry - It is record of each and every business transactions whether it is economic or non…

Q: this date, the c

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

Q: Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,…

A:

Q: Prepare the necessary entries to be made by both companies for 20X1 and 20X2. • Allocate the…

A:

Q: Sage, Inc. bought 40% of Adams Corp.'s outstanding common stock on January 2, 20x3 for P400,000. The…

A: Given the following information: Sage, Inc. bought 40% of Adams Corp.'s outstanding common stock on…

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%

Q: On January 1, 20X1, Payne Corp. purchased 70% of Shayne Corp.'s $10 par common stock for $900,000.…

A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…

Q: Harper,  Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by…

A: Purchase consideration refers to the total amount paid by the purchaser to the seller in the form of…

Q: Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,…

A:

Q: January 1, 20x4, Payne Corp. purchased 70% of Shayne Corp.’s P10 par common stock for P900,000. On…

A: The non controlling interest is calculated as follows

Q: On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash.…

A: given   On 3 January 20X4, Windsor Company purchased 30% of the shares of Brampton for $746,000 cash…

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: eter Company purchased 80 percent of the outstanding shares of Sedrosky Company at a cost of…

A: Given:

Q: TRICKY Company acquires 25% of JOKER Corporation’s ordinary shares for P190,000 cash and carries the…

A: Total fair value on acquisition date = Purchase of 25% share + Purchase of 60% share + fair value of…

Q: On January 1, 20x1, ABC Company acquired 80% of XYZ Company’s common stock for 275,000 cash. At that…

A: Net income: Net income is the amount determined by drafting the statement of profit or loss of a…

Q: On January 1, 20x1, ABC Company acquired 80% of XYZ Company's common stock for 275,000 cash. At that…

A: Consolidated retained earnings are calculated using the following formula:- Consolidated RE =…

Q: On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years.…

A: The non controlling interest is the part of income that related to the minority shareholders.

Q: P Co acquired 75% of the shares in S Co on 1 January 20X2 when the retained earnings of S Co stood…

A: A consolidated financial position statement is a key fiscal summary if there should be an occurrence…

Q: ment     15,000 TLK Corporation holds 60 percent of Gold’s voting shares. Gold reported net income…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years.…

A: An income statement in which revenues, expenses and net income of parent and subsidiary company are…

Q: On January 1, 20x2, Gold Company purchased a computer with an expected economic life of five years.…

A: Consolidated net income can be defined as the summation of the net income of the parent company and…

Q: On January 1, 2010, XYZ Corp. acquired 90% of the voting common stock of ABC Corp. Amortization…

A: Consolidation is a process in which the financials of two or more companies are merged together.…

Q: In July 1, 20X1, CBC acquired 25% of the outstanding ordinary shares of Yellow Corp at a total cost…

A: Here discuss about the details of the carrying value of the investment account after the acquisition…

Q: Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: net share in the profit of the associate would b

A: The Carrying value of the Investment account on Dec 31,20X1 is : The acquisition Amount : P70,00,000…

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.