On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of ABC Inc and its subsidiary are shown below: Stockholders' equity-XYZ 2,437,500 1,584,375 853,125 Investment in XYZ Non-controlling interest Inventories 62,500 312,500 61,250 Equipment Patent Goodwill Investment in XYZ 468,750 Non-controlling interest ? The purchase price of ABC Inc included a control premium of P68,750.

On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of ABC Inc and its subsidiary are shown below: Stockholders' equity-XYZ 2,437,500 1,584,375 853,125 Investment in XYZ Non-controlling interest Inventories 62,500 312,500 61,250 Equipment Patent Goodwill Investment in XYZ 468,750 Non-controlling interest ? The purchase price of ABC Inc included a control premium of P68,750.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

See similar textbooks

Similar questions

On February 1, 20x1, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The incomplete working paper elimination entries on that date for the consolidated of statement of financial position of Paco Corp. and School Inc. are shown below: WPEE 1 Shareholders' equity - School Inc. 1,453,500 Investment in School Inc. 1,235,475 Non-controlling interest 218,025 WPEE 2 Inventories 33,150 Equipment 280,500 Goodwill ? Investment in School Inc. 349,775 Non-controlling interest ? Assuming NCI is measured at fair value, the cash consideration includes control premium of P20,000, what is the amount of goodwill?
On May 1, 2021, Caprisun Inc acquired most of the outstanding shares of Cancer Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Taurus Inc and its subsidiary are shown below: Stockholders' equity-Cancer 2,437,500 Investment in Cancer 1,584,375 Non-controlling interest 853,125 Inventories 62,500 Equipment 312,500 Patent 61,250 Goodwill ? Investment in Cancer 468,750 Non-controlling interest ? The purchase price of Caprisun Inc included a control premium of 68,750. What is the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 2021 if the non-controlling interest is assumed to be measured at fair value.
On July 1, 2018, Alpha Co. acquired most of the outstanding voting stocks of Roger Co. for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Alpha Co. and its subsidiary are shown below: Common stock - Roger 1,500,000 Share premium - Roger 937,500 Investment in Roger 1,584,375 Non-controlling Interest 853,125 Inventories 62,500 Equipment 312,500 Patent 61,250 Investment in Roger ? Non-controlling Interest ? Goodwill ? Investment in Roger 185187.5 Non-controlling Interest ? Included in the purchase price is a control premium of P68,750. Compute for the amount of goodwill to be reported in the consolidated statement of financial position on July 1, 2018 assuming non-controlling interest is…
On July 1, 2018, Alpha Co. acquired most of the outstanding voting stocks of Roger Co. for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Alpha Co. and its subsidiary are shown below: Common stock - Roger    1,500,000 Share premium - Roger      937,500               Investment in Roger 1,584,375               Non-controlling Interest      853,125 Inventories 62,500 Equipment 312,500 Patent 61,250              Investment in Roger ?              Non-controlling Interest ? Goodwill ?             Investment in Roger 185187.5             Non-controlling Interest ? Included in the purchase price is a control premium of P68,750. (a) Compute for the amount of goodwill to be reported in the consolidated statement of financial position on July 1, 2018 assuming non-controlling interest…
On July 1, 2018, Alpha Co. acquired most of the outstanding voting stocks of Roger Co. for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Alpha Co. and its subsidiary are shown below: Common stock - Roger    1,500,000 Share premium - Roger      937,500               Investment in Roger 1,584,375               Non-controlling Interest      853,125 Inventories 62,500 Equipment 312,500 Patent 61,250              Investment in Roger ?              Non-controlling Interest ? Goodwill ?             Investment in Roger 185187.5             Non-controlling Interest ? Included in the purchase price is a control premium of P68,750. How much is the percentage ownership of the controlling interest and non-controlling interest?
9. On February 1, 20x21, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The incomplete working paper elimination entries on that date for the consolidated of statement of financial position of Paco Corp. and School Inc. are shown below: WPEE 1                 Shareholders’ equity – School Inc.                             1,453,500                                                 Investment in School Inc.                                                              1,235,475                                                 Non-controlling interest                                                                218,025 WPEE 2                 Inventories                                                                         33,150                                 Equipment                                                                          280,500                                 Goodwill…
On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. Determine the fair value of consideration transferred on the business combination.
On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. Determine the fair value of consideration transferred on the business combination?
On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. Determine the fair value of consideration transferred on the business combination? what is the retained earnings of the combined entity immediately after the business combination?
On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. Determine the fair value of consideration transferred on the business combination? how many shares were issued in the business combination? how much is the acquisition-date fair value per share?
On June 30, 20X1, Naeder Corporation purchased for cash at $10 per share all 100,000 shares of the outstanding common stock of the Tedd Company. The total fair value of all identifiable net assets of Tedd was $1,400,000. The only noncurrent asset is property with a fair value of $350,000. The consolidated balance sheet of Naeder and its wholly owned subsidiary on June 30, 20X1, should report a. a retained earnings balance that is inclusive of a gain of $400,000. b. goodwill of $400,000. c. a retained earnings balance that is inclusive of a gain of $350,000. d. a gain of $400,000
The Elf Co. acquired a 60% interest in the Pea Co. when Pea's equity comprised share capital of P100,000 and retained earnings of P150,000. Pea's current statement of financial position shows share capital of P100,000, a revaluation reserve of P75,000 and retained earnings of P300,000. Under IAS 27, Consolidated and Separate Financial Statements, what amount in respect of the non-controlling interest should be included in Elf Co.'s consolidated statement of financial position?