PARENT Corporation acquired 80% of the outstanding shares of SUBSIDIARY Company on June 1, 2022 for P3,517,500. SUBSIDIARY Company's stockholder's equity components at the end of this year are as follows; Ordinary shares, P100 par, P1,500,000. Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of SUBSIDIARY were fairly valued, except for inventories, which are overstated by P66,000 and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years.
Q: Destiny Apartments Inc. (DA Inc.) is building a luxury condominium for a contract price of $68,000,0...
A: Solution Gross profit is the profit a business make after substracting all costs that are related to...
Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company. ...
A:
Q: 10-13 Jesper, Inc., has a number of divisions including a Furniture Division and a Motel Division. T...
A: Transfer price- The transfer price is the price used in a transaction between individuals inside the...
Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of ...
A: Interest payable: It refers to the interest that is charged on the loan for the related period of ac...
Q: Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respec...
A: Solution:- Preparation of the journal entry to record Daggett’s withdrawal as follows under:- Introd...
Q: iability and Equity Classification Select from the option list provided the appropriate balance ...
A: Liabilities are accumulated financial obligations that result from past events that are expected to ...
Q: True or False Questions Statements 1. Unlike merchandising companies, income statements of service c...
A: Solution:- 1)Unlike merchandising companies, income statements of service companies include cost of ...
Q: How would you explain to a company’s management the primary difference between traditional and activ...
A: A system that is used for assigning the total cost incurred to different elements of business is kno...
Q: What type of asset does a merchandiser have that a service provider does not? Why is it important th...
A: Merchandising companies will have an asset for inventory, whereas service companies do not. This is ...
Q: Q3: Case 3 Mr. Salim is working with Omantel company. Mr. Ali is also working with same company and ...
A: A valid contract is an agreement that is enforceable by law . In a valid contract all parties are li...
Q: Screen Shot 2022-03-15 at 2.22... Q EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax ...
A: Exemption equivalent trusts are trusts financed by a decedent's will with a property that provides t...
Q: What is commercial risk?
A: In financial terms, risk is defined as the possibility that the real profits from an outcome or inve...
Q: hal driver c of Php. 6,0
A: Total cost for a period is the amount of money which has been incurred or which is fixed for the mon...
Q: The Diversified Portfolio Corporation provides investment advice to customers. A condensed income st...
A: Cash flow statement refers to one of the key financial statements which is formed, prepared and pres...
Q: ampierre makes brass and gold frames. The company computed this information to decide whether to swi...
A: In this question, we have to calculate allocation per unit using traditional method.
Q: The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff. account...
A: No. of shares issued under bonus issue = No. of shares outstanding x bonus rate Amount charged to Re...
Q: Brislin, Humphreys, and Watkins share income and losses in a ratio of 3:2:5, respectively. The capit...
A: Brislin agrees to pay Watkins $188,000 for one-half of his capital interest and Humphreys agrees to ...
Q: Use this problem to answer the next three questions: On January 2, year 1, ABC Company purchased 75%...
A: Share of net income=Net income of XYZ×NCI %=$20,000×25%=$5,000
Q: 9. Training designed to make people more open and self-expressive without being rude or thoughtless ...
A: Regressive behavior implies the individual regresses or unlearns the things which he/she was already...
Q: Cash $320,000 Petty Cash Short-term paper due 2/27/20 Short-term paper due 6/30/20 Short-term paper ...
A: Cash or cash equivalent means company's assets that are cash or other assets can be immediately conv...
Q: How to do the leger book
A: A ledger seems to be a book of accounts that contains the categorized and summarised data from the j...
Q: After taking business classes, Jake, an avid dog-lover, decided to start selling unique pet supplies...
A: The expenses amount which remains stagnant with changing level of production are called fixed expens...
Q: Company’s stockholders’ equity as of December 31, 2020 is P7,308,000. On January 1, 2021, Parent acq...
A: The goodwill or gain on bargain purchase refers to the excess or short amount paid for the acquisiti...
Q: Catalina Corporation begins the year with a $195 balance in Retained Earnings and a $320 balance in ...
A: Stockholder's equity: It implies to the net assets (assets - liabilities) that have shareholder's cl...
Q: The corporate charter of Carla Vista Corporation allows the issuance of a maximum of 30,800,000 shar...
A: Solution: When common stock are issued at a price greater than face value, common stock account is c...
Q: Jaycie Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on Decemb...
A: A journal entry refers to the act of making/keeping records of monetary events occurring in a partic...
Q: Novi purchased ABC bonds on 1/1/22. Data regarding these available-for-sale securities follow: ...
A: Fair value adjustment account shows the balance of unrealized gain (credit ) or unrealized loss on r...
Q: 3. Which of the following is true in regards to the reassessment of the lease term? A. If the lessee...
A: Lease agreement is a type of agreement between a lessor and a lessee whereby a lessor allows the les...
Q: equivalent
A:
Q: Panthers Corp. purchased 16,000 shares of Canes Corp. for $10 per share on April 1, 2022. As per IFR...
A: The Journal entries is given below
Q: Tencent Corporation has a target capital structure of 70 percent common stock,5 percent preferred st...
A: Given that the capital structure as below: Common stock = 70% Preferred stock = 5% Debt = 25%
Q: allace Inc. had a net realizable value of receivables of $700,000 when they prepared an aging of the...
A: In this question, we have to find out the uncollectible account expenses for 2020.
Q: Sleepy Time is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent i...
A: In this question we have to calculate operating income.
Q: Catalina Corporation begins the year with a $195 balance in Retained Earnings and a $320 balance in ...
A: Stockholders' equity represents the amount of funds remaining with the entity after payment of all t...
Q: SOLUTION IN GOOD ACCOUNTING FORM In the December 31, year 1 consolidated balance sheet, noncontrolli...
A: The question is related to the Consolidation. The details are as under ABC Corporation Share = 80% ...
Q: Drexler incurred P234,000 of experimental and development costs in its laboratory to develop a paten...
A: The amortization expense is charged on intangible assets such as patent, goodwill, etc.
Q: e data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimate...
A: Budget will help to find any mistakes in planning, hence a business can take corrective measures and...
Q: In the context of choosing a share repurchase over declaring dividends, a share repurchase would * ...
A: Share repurchase means buying back of the shares by the company. It is also referred to as treasury ...
Q: Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies...
A: Introduction Inventory refers to goods and services that is used in manufacturing by companies durin...
Q: The process of raising thi
A: There are many methods to raise funds directly, including issuing shares and debentures.
Q: On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for P9...
A: The question is related to Business Combination. The details are as under ABC Corporation Share = 8...
Q: Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do t...
A: Solution:- Given, Bargain Inc., produced 1000 units Direct materials was three yards of cloth per u...
Q: Domingo Corporation uses the weighted-average method in its process costing system. This month, the ...
A: Ending work in process inventory is the inventory held at the closing date which is not yet complete...
Q: Mariam is currently renting an apartment for R.O.725 per month and paying R.O.275 annually for rente...
A: Lease- Lease agreements are contracts or instruments that transfer property from one person to anoth...
Q: Palladium Inc. produces a variety of household cleaning products. Palladium's controller has develop...
A: Overhead Budget has been developed to anticipate and show all estimated expenses associated with the...
Q: Investors currently expect inflation to average 2.5% in the future, while the real risk-free rate is...
A: The required rate of return (RRR) seems to be the minimal return an investor would take in exchange ...
Q: Required information Exercise 7-5 (Algo) Trade and cash discounts; the gross method and the net meth...
A: The methodical recording of financial transactions in a certain format in a company's accounting rec...
Q: d. Bonds that will mature in 5 years are purchased. The company has a strategy to hold them to colle...
A: Bond is actually a financial instrument which falls under the category of debt because it is a loan ...
Q: The Felton and Burchell Partnership has partner capital account balances as follows: Felton, Capit...
A: Existing Capital = Felton, Capital + Burchell, Capital Total Capital = Existing Capital + New Capita...
Q: January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for P975,...
A: As per IFRS 3 business combination, at the time of acquisition all assets and liabilities are valued...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- PARENT Corporation acquired 80% of the outstanding shares of SUBSIDIARY Company on June 1, 2022 for P3,517,500. SUBSIDIARY Company’s stockholder’s equity components at the end of this year are as follows; Ordinary shares, P100 par, P1,500,000. Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of SUBSIDIARY were fairly valued, except for inventories, which are overstated by P66,000 and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years. Stockholder’s equity of PARENT on January 1, 2022 is composed of Ordinary shares P4,500,000, Share premium P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down by P85,350 at year-end. Net Income for the first year of parent is P450,000 and the net income of subsidiary from the date of acquisition is P255,000. Dividends declared at the end of the year amounted to P120,000 and P90,000 for…Parent Corporation acquired 80% of the outstanding shares of Subsidiary Company on June 1, 2021 for P3,517,500. Subsidiary Company’s stockholder’s equity components at the end of this year are as follows: Ordinary shares, P100 par, P1,500,000, Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of Subsidiary Company were fairly valued, except for inventories, which are overstated by P66,000, and equipment, which was understated by P90,000. Remaining useful life of equipment is 4 years. Stockholder’s equity of Parent Corporation on January 1, 2021 is composed of Ordinary shares P4,500,000, Share premium P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down by P85,350 at year end. Net Income for the first year of parent is P450,000 and the net income of Subsidiary Company from the date of acquisition is P255,000. Dividends declared at the end of the year…YSL Corporation acquired 80% of the outstanding ordinary shares of GBX Company on June 1, 2022 for P586,250. GBX Company’s shareholder’s equity components at the end of this year were as follows: Ordinary shares, P100 par, P250,000; Share premium, P112,500 and Retained earnings, P222,500.Non-controlling interest (NCI) is measured at fair value. All the assets of GBX were fairly valued, except for inventories, which is overstated by P11,000 and equipment, which is understated by P15,000. Remaining useful life of equipment is 4 years. Both companies use straight line method for depreciation and amortization.Shareholder’s equity of YSL on January 1, 2022 is composed of Ordinary shares, P750,000; Share premium, P175,000 and Retained earnings, P525,000.Fair value of NCI on the date of acquisition is P117,500. Goodwill, if any, should be written down by P14,225 at year end. Net income for the first year of parent and subsidiary are P75,000 and P42,500 (from date of acquisition),…
- YSL Corporation acquired 80% of the outstanding ordinary shares of GBX Company on June 1, 2022 for P586,250. GBX Company’s shareholder’s equity components at the end of this year were as follows: Ordinary shares, P100 par, P250,000; Share premium, P112,500 and Retained earnings, P222,500.Non-controlling interest (NCI) is measured at fair value. All the assets of GBX were fairly valued, except for inventories, which is overstated by P11,000 and equipment, which is understated by P15,000. Remaining useful life of equipment is 4 years. Both companies use straight line method for depreciation and amortization.Shareholder’s equity of YSL on January 1, 2022 is composed of Ordinary shares, P750,000; Share premium, P175,000 and Retained earnings, P525,000.Fair value of NCI on the date of acquisition is P117,500. Goodwill, if any, should be written down by P14,225 at year end. Net income for the first year of parent and subsidiary are P75,000 and P42,500 (from date of acquisition),…YSL Corporation acquired 80% of the outstanding ordinary shares of GBX Company on June 1, 2022 for P586,250. GBX Company's shareholder's equity components at the end of this year were as follows: Ordinary shares, P100 par, 250,000; Share premium, P112,500 and Retained. earnings, P222,500. Non-controlling interest (NCl) is measured at fair value. All the assets of GBX were fairly valued, except for inventories, which is overstated by P11,000 and equipment, which is understated by 15,000, Remaining useful life of equipment is 4 years. Both companies use straight line method for depreciation and amortization. Shareholder's equity of YSL on January 1, 2022 is composed of Ordinary shares, P750,000; Share premium, P175,000 and Retained earnings, P525,000 Fair value of NCI on the date of acquisition is P117,500. Goodwill, if any, should be written down by P14,225 at year end. Net income for the first year of parent and subsidiary are P75,000 and P42,500 (from date of acquisition),…On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Consideration includes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equity of P and S Company are as follows: P Company S Company Ordinary Share Capital 3,300,000 1,450,000 Accumulated Profits 5,450,000 2,800,000 Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years), P600,000. All other assets and liabilities are fairly valued. Towards the end of the year, P sold to S merchandise costing P150,000 at 40% gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventory from S amounting to P250,000 which includes mark-up of 20% based on cost. P sold to outsider 30% of these inventories during 2022. Goodwill is impaired by P225,000. P…
- On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Consideration includes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equity of P and S Company are as follows: P Company S Company Ordinary Share Capital 3,300,000 1,450,000 Accumulated Profits 5,450,000 2,800,000 Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years), P600,000. All other assets and liabilities are fairly valued. Towards the end of the year, P sold to S merchandise costing P150,000 at 40% gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventory from S amounting to P250,000 which includes mark-up of 20% based on cost. P sold to outsider 30% of these inventories during 2022. Goodwill is impaired by P225,000. P…On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Consideration includes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equity of P and S Company are as follows: P Company S Company Ordinary Share Capital 3,300,000 1,450,000 Accumulated Profits 5,450,000 2,800,000 Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years), P600,000. All other assets and liabilities are fairly valued. Towards the end of the year, P sold to S merchandise costing P150,000 at 40% gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventory from S amounting to P250,000 which includes mark-up of 20% based on cost. P sold to outsider 30% of these inventories during 2022. Goodwill is impaired by P225,000. P…On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Consideration includes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equity of S Company is as follows: P. Company S Company Ordinary Share Capital 3,300,000 1,450,000 Accumulated Profits 5,450,000 2,800,000 Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years), P600,000. All other assets and liabilities are fairly valued. S Company sold an equipment to P Company for P200,000 carried in S’s book at P120,000 on July 1, 2022; remaining life is 4 years. Towards the end of the year, P sold to S merchandise costing P150,000 at 40% gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased…
- On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the Net income attributable to parents' shareholders'…On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had a remaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the Non-controlling interest in net asset of subsidiary…On January 1, 2022, Pet Company purchased 80% of the shares of Sam Company for P1,000,000. The shareholders' equity of Sam Company on that date showed: Ordinary Shares - P570,000 and Retained Earnings - P490,000. Non-controlling interest is initially measured at proportionate share of subsidiary's net assets.On April 30, 2022, Pet acquired used machinery for P84,000 from Sam that was being carried in the latter's books at P105,000. The asset still has a remaining useful life of 5 years. On the other hand, on August 31, 2022, Sam purchased an equipment that was already 20% depreciated from Pet for P345,000. The original cost of this equipment was P375,000 and had aremaining life of 8 years.Net income of Pet Company and Sam Company for 2022 amounted to P360,000 and P155,000. Dividends paid totaled to P115,000 and P52,500 for Pet and Sam, respectively.Required:On the consolidated financial statements in 2022, how much would be the carrying value of Property and Equipment?