At what amount should the Land be recorded in the books of Orange?
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On October 17, ORANGE Company issued 15,000 shares of its ₱100 par ordinary share in acquiring a land that has a fair value of ₱ 1,700,000 during that date. The ordinary share is actively selling at ₱120 per share. On December 31, the land has a fair value of ₱2,100,000. At what amount should the Land be recorded in the books of Orange?
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- On October 17, CORAL Company issued 15,000 shares of its ₱100 par ordinary share in acquiring a land that has a fair value of ₱ 1,700,000 during that date. The ordinary share is actively selling at ₱120 per share. On December 31, the land has a fair value of ₱2,100,000. At what amount should the Land be recorded in the books of CORAL?On October 17, CORAL Company issued 15,000 shares of its ₱100 par ordinary share in acquiring a land that has a fair value of ₱ 1,700,000 during that date. The ordinary share is actively selling at ₱120 per share. On December 31, the land has a fair value of ₱2,100,000. At what amount should the Land be recorded in the books of CORAL? ₱ 1,800,000 ₱ 1,500,000 ₱ 1,700,000 ₱ 2,100,000On july 16, 2021, Empe exchanged a land for 15,000 ordinary shares of RH corporation to be held for trading. On this date, the carrying amount of the land was P1,200,000 and the fair value was P1,650,000. On this date, the carrying amount of RH's share was P75 and the market value was P125. On October 17, 10,000 of these share were sold at P135. The market price at year end is P142. The entry made by your client with regards to the above investment upon acquisition was: DEBIT: Trading securities-RH-P1,200,000 CREDIT: Land-P1,200,000 Upon sale: DEBIT: Cash-P1,350,000 CREDIT: Trading securities-P1,350,000 What amount should be presented in the statement of financial position on December 31, 2021 for the investment related to RH? Compute the unrealized gain or loss that should be reported in the income statement at yearend. ( If loss, put a negative (-) sign before the numerical figure)
- On June 17, the Lattern Company issued 120,000 shares of its $0.10 par value common share in exchange for land. On the date of the transaction, the fair value of the common share, evidenced by its market price, was $10 per share. The journal entry to record this transaction includes ______.During the year, Donahue Company purchased land and building by issuing 50,000 ordinary shares with P 100 par value. On acquisition date, the shares had a market value of P 140 per share and the land had a fair value of P 2,000,000. No available fair value for the building on that date. During the year, Donahue also received land from a shareholder to facilitate the relocation of its main offices in the city. Donahue paid P 50,000 special tax assessment and P 50,000 legal costs related to transfer the donated land. The donated land is fairly valued at P 1,800,000. What is the total cost of the land acquired during the year? P 3,600,000 P 3,900,000 P 3,850,000 P 3,550,000On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term investment. On August 5, Montero sold one-tenth of the ORD shares for $18,000. 1. Prepare entries to record both (a) the acquisition and (b) the sale of these shares. 2. Should this stock investment be reported at fair value or at cost on the balance sheet?
- Oolong’s Corporation has an investment in 10,000 shares of Chiatze Company ordinary share with a cost of P436,000. These shares are used in a property dividend to shareholders of Oolong’s. The property dividend is declared on May 25 and scheduled to be distributed on July 31 to shareholders of record on June 15. The fair value per share of Chiatze share is P63 on May 25, P66 on June 15, and P68 on July 31. The net effect of this property dividend on retained earnings is a reduction of a.P680,000 b.P630,000 c.P660,000 d.P436,000On January 1 of the current year, Philips Company, an investor, held 10,000 shares of Sunshine Company, acquired at a total cost of P1,980,000. On October 1 of the current year, Sunshine Company issued rights to subscribe to new stock at P165 per share in the ratio of one share for every five rights held. The share has market value of P209 and the right has a market value of P11 at the time of issuance. Philips Company did not account for the stock rights spearately and subsequently exercise all stock rights during the current year. What amount should be reported by Philips as an investment in Supremes Company at the end of the current year?On January 1, Paisley, Inc., paid $560,000 for all of Skyler Corporation’s outstanding stock. This cash payment was based on a price of $180 per share for Skyler’s $100 par value preferred stock and $38 per share for its $20 par value common stock. The preferred shares are voting, cumulative, and fully participating. At the acquisition date, the book values of Skyler’s accounts equaled their fair values. Any excess fair value is assigned to an intangible asset and will be amortized over a 10-year period. During the year, Skyler sold inventory costing $60,000 to Paisley for $90,000. All but $18,000 (measured at transfer price) of this merchandise has been resold to outsiders by the end of the year. At the end of the year, Paisley continues to owe Skyler for the last shipment of inventory priced at $28,000. Also, on January 2 Paisley sold Skyler equipment for $20,000 although it had a carrying amount of only $12,000 (original cost of $30,000). Both companies depreciate such property…
- On January 1, 2020, investor X has an investment in 20% of the investee’s outstanding shares at a cost of USD 370. The investee’s net assets on that date were USD 1,600 and there was no difference between the carrying amount and fair values of the investee’s assets and liabilities except for Land, which fair value was USD150 higher than the carrying amount. Investor X analyzed and concluded that it has significant influence over the investee. During 2020, the investee distributed dividend of USD 80 on April 1, reported net profit of USD 250 and recognized revaluation surplus of USD 30 on property, plant, and equipment. On December 31, 2020, the fair value of the investment held by investor X in the investee’s shares is USD 400. Required: 1. How much is the goodwill in investor A’s investment? 2. Prepare the journal entry(s) for investor A’s investment in the investee during 2020.At the beginning of the current year, Boyet Company bought 40% of Aubrey Company’s outstanding ordinary shares for P3,500,000. The company also paid P700,000 to a business broker who helped find a suitable business and negotiated the purchase. The carrying amount of Aubrey Company’s net assets at the purchase date totaled P9,000,000. The difference was attributed to plant which had a carrying amount of P1,100,000 and a fair value of P2,000,000 and to inventory which had a carrying amount of P250,000 and a fair value of P350,000. The plant has 18-year life. All inventory was sold during the current year. During the current year, the investee reported net income of P1,200,000 and paid a P200,000 cash dividend. Of the amount paid for the investment, how much is attributable to goodwill? How much is the amortization of purchase differential during the current year? What amount should be reported as investment income for the current year? What is the carrying amount of the investment in…Use this problem for the next two questions: On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for P975,000. On this date, the carrying amount of XYZ's net assets was P1,000,000. The fair values of XYZ's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) with fair values of P100,000 in excess of their carrying amount. The fair value of the noncontrolling interest in XYZ on January 1, year 1, was P250,000. For the year ended December 31, year 1, XYZ had net income of P190,000 and paid cash dividends totaling P125,000. In the January 1, year 1 consolidated balance sheet, goodwill should be reported at ?
