On June 30, 20x1, Cockroach Co. acquired 75,000 of Nymph Co.'s 100,000 outstanding equity shares with par value per share of ₱4 for₱16 per share. At the time of acquisition, the retained earnings of Nymph were ₱320,000. The quoted price of Nymph's shares was ₱14per share at acquisition date.QUESTION: How much is the consolidated total equity? Additional information:• Included in the total assets of Nymph is land classified asinvestment property with a cost of P720,000. Its fair value atacquisition date was P800,000 and by June 30, 20x3 this hadrisen to P1,280,000. Nymph uses the cost model for itsinvestment properties. However, the group's policy forinvestment properties is the fair value model.Also at acquisition date, Nymph's building classified as property,plant, and equipment had a fair value of P120,000 in excess of itscarrying amount. The building's remaining useful life is 5 years atthat date. The group's depreciation method is straight-line basis.• The inter-company current accounts included receivables andpayables of P40,000 on June 30, 20x3.• An impairment test at June 30, 20x3 concluded that consolidatedgoodwill was impaired by P80,000.• Cockroach elected to measure NCI at the NCI's fair value. Therehave been no changes in Nymph's number of outstanding sharessubsequent to date of acquisition.A summary of the individual statements of financial positions of theentities as at June 30, 20x3 is shown below:Cockroach NymphCo.2,000,00Co.4,000,000Total assetsTotal liabilities800,0001,200,000480,000400,0001,120,00Share capital2,000,000Retained earningsTotal liabilities and2,000,004,000,000equity

Consolidation In the consolidation Parent company acquired more than 50% shares of the subsidiary…

On June 30, 20x1, Cockroach Co. acquired 75,000 of Nymph Co.'s 100,000 outstanding equity shares with par value per share of ₱4 for₱16 per share. At the time of acquisition, the retained earnings of Nymph were ₱320,000. The quoted price of Nymph's shares was ₱14per share at acquisition date. QUESTION: How much is the consolidated total equity?

On June 30, 20x1, Cockroach Co. acquired 75,000 of Nymph Co.'s 100,000 outstanding equity shares with par value per share of ₱4 for₱16 per share. At the time of acquisition, the retained earnings of Nymph were ₱320,000. The quoted price of Nymph's shares was ₱14per share at acquisition date. QUESTION: How much is the consolidated total equity?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 46P

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