P Ltd acquired 80% of S Ltd in January 20x1. In December 20x8, S Ltd sold a piece of machinery to P Ltd for $12 million. Immediately before the sale, the machinery was carried in S Ltd’s books at cost of $10 million less accumulated depreciation of $3 million. The machinery had been used by S Ltd as property, plant and equipment and will be used by P Ltd as property, plant and equipment. The 20x8 consolidation adjusting entries for the inter-company sale of machinery should be:

Q: n January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000.…

A: FV of trade secret=Total acquisition value-Allocated to machine=$60,000-$50,000=$10,000

Q: n January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The…

A: Depreciation represents the reduction in the value of the long-term asset of the company over a…

Q: Karlyn Company had the following property acquisitions during the current year: • Acquired a tract…

A:

Q: At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $51 million. At the…

A: Depreciation can be termed as a reduction in the value of an asset over its useful period when used…

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: January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $47,052. Calvin…

A: A financial statement that details the amounts of cash and cash equivalents that enter and leave a…

Q: On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: Prime Corp acquired 90% of the outstanding ordinary share of Bee Company. On March 31, 2030, Prime…

A: In the context of the given question, Prime Corp acquired 90% of the outstanding ordinary share of…

Q: What is the gain to be reported on FLORIDA's December 31, 20X8 consolidated income statement?

A: P130,000 is the gain to be reported n FLORIDA's December 31, 20X8 consolidated income statement.…

Q: WW Corporation owns 70 percent of the outstanding stock of HH, Incorporated. On January I, 20x4, WW…

A: Depreciation charged by HH=P280,0008=P35,000 Compute the depreciation to be charged in…

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: Franklin purchases 40 percent of Johnson Company on January 1 for $604,600. Although Franklin did…

A: purchase price of stock is 604600 book value ( 1518000-598000) * 40% is 368000 cost in excess of…

Q: Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1,…

A: During consolidation, the existing balance in the accumulated depreciation balance will be…

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: Assume that the acquisition took place on January 1. What figures would appear in a consolidated…

A: Preparation of consolidated income statement are as follows:

Q: At the beginning of the current year, FFF Company acquired 20% of the outstanding ordinary shares of…

A: Acquisition:- When one company acquires a stake in another company and gets the decision rights in…

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: Prime Corp acquired 90% of the outstanding ordinary share of Bee Company. On March 31, 2030, Prime…

A: Prime acquired 90% of the shares of Bee Co.   So Prime is holding…

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: On September 1, 20Y8, Vernon Corporation acquired Barlow Enterprises for a cash payment of…

A: Purchase Consideration   2,300,000 Less: Net Assets of Barlow Enterprises   1,500,000 Goodwill…

Q: At the beginning of the current year, FFF Company acquired 20% of the outstanding ordinary shares of…

A: Current Investment Current Investment should valued at lower of cost or NRV whichever is lower…

Q: Paula Company had the following property acquisitions during the current year: Acquired a tract of…

A: Acquistion of long term asset If  Long term asset is acquired  in exchange of non cash items, Fair…

Q: On January 1, 2011, Pat Corporation paid $400,000 for purchase of Sad Corporation, when Sad's…

A: Fair value of net identifiable assets = Common stock + Retained earnings + fair value adjustments…

Q: Based on the preceding information, how much of the gain on sale of the equipment recorded by Mortar…

A: Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1,…

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: What is the consolidated depreciation expense of equipment for the year ended December 31, 2010…

A: Depreciation expense is the portion of a fixed asset that is assumed to be used in the current…

Q: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $57,732.…

A: SOLUTION- CONSOLIDATED BALANCE SHEET  IS MERE CONSOLIDATION OF FINANCIAL DETAILS OF ALL A SUBSIDIARY…

Q: On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in…

A: Depreciation expenditure is the sum depreciated for a single month, whereas accumulated depreciation…

Q: POPOY Co. purchased 40% of BASHA Corp. on April 1, 2022, for P500,000 when BASHA's net assets has a…

A: Carrying value of Investment in an associate is calculated as the cost of acquisition +…

Q: Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At…

A: Consolidation Accounting It is the method  to combine financial results of subsidiary companies into…

Q: Adora Inc. acquired one hundred percent of Alvah Co. on January 1, 2018, at a price in excess of the…

A: Solution Equipment is a non-current or long term asset account which report the cost of Equipment.…

Q: On January 1, 2010, Ayala Corporation acquired 80% of ordinary hares of Globe Company at fair value…

A: The accounting approach used to allocate expenditures over the useful life of a tangible or physical…

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

A:

Q: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $66,312.…

A: Consolidation is a term used for merging of several companies of an industry. The assets,…

Q: pital Stock and $30,000 of Retained Earnings. The difference between the fair value of Pawl's assets…

A: The working is given as, Preliminary Calculations:   Investment cost on January 1, 2014 $…

Q: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000.…

A: Compute the non-controlling interest in subsidiary income. Working Notes:

Q: On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $110,000 in…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

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 March 1, 2010, JJ Corporation acquired for P 5,600,000 all of the assets of ZZ Company. On this…

A: The goodwill is calculated by deducting the fair value of the assets from the acquisition price.

Q: Franklin purchases 40 percent of Johnson Company on January 1 for $500,000. Although Franklin did…

A:

Q: On January 1, 20x1, ABET Co. purchased 25% interest in the ordinary shares of ENCOURAGE, Inc. for…

A: This question deals with the concept of calculating carrying value of investment and share in profit…

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: The owners of Rainier Company are planning to sell the business to new interests. The cumulative net…

A: Answer is option B0 14,000,000

Q: Franklin purchases 40 percent of Johnson Company on January 1 for $621,200. Although Franklin did…

A: Calculation of cost in excess of book value :- purchase price of stock is 621,200 book value…

Q: Item Cash Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20x8, for…

A: Consolidated financial statements prepared by an company where it has subsidiaries or divisions…

Q: Pauly Corporation owns 70% of Shore Company's outstanding common stock. On 01/01/20, Pauly sold a…

A:

Q: Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of…

A: Definition:   Consolidated financial statements: These financial statements are consolidated…

Q: On January 1, 20X1, Promo, Inc. purchased 70% of Set Corporation for $469,000. On that date the book…

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

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…