Problem 7-4 (IFRS) rOn September 30, 2021, when the carrying amount of the assets of a major subsidiary was P70,000,000, Young Company signed a legally binding contract to sell the subsidiary.The sale is expected to be completed by January 31, 2022 at a selling price of P60,000,000.In addition, prior to January 31, 2022, the sale contract obliged the entity to terminate the employment of certain employees of the business segment incurring an expected termination cost of P5,000,000 to be paid on June 30, 2022.The segment's revenue and expenses for 2021 were P40,000,000 and P45,000,000 respectively. The income tax rate is 30%.What amount should be reported as loss from discontinued operation for 2021?a. 10,500,000b. 20,000,000c. 15,000,000d. 14,000,000 Problem 7-4 (IFRS) to r169/00.00On September 30, 2021, when the carrying amount of the assetsof a major subsidiary was P70,000,000, Young Company signeda legally binding contract to sell the subsidiary.discontinuesThe sale is expected to be completed by January 31, 2022 ata selling price of P60,000,000.In addition, prior to January 31, 2022, the sale contractobliged the entity to terminate the employment of certainemployees of the business segment incurring an expectedtermination cost of P5,000,000 to be paid on June 30, 2022-.The segment's revenue and expenses for 2021 wereP40,000,000 and P45,000,000 respectively. The income taxrate is 30%.What amount should be reported as loss from discontinuedoperation for 2021?a. 10,500,000b. 20,000,000c. 15,000,000d. 14,000,000104

Discontinued operations are accounting words that refer to parts of a company's operations that have…

Problem 7-4 (IFRS) r On September 30, 2021, when the carrying amount of the assets of a major subsidiary was P70,000,000, Young Company signed a legally binding contract to sell the subsidiary. The sale is expected to be completed by January 31, 2022 at a selling price of P60,000,000. In addition, prior to January 31, 2022, the sale contract obliged the entity to terminate the employment of certain employees of the business segment incurring an expected termination cost of P5,000,000 to be paid on June 30, 2022. The segment's revenue and expenses for 2021 were P40,000,000 and P45,000,000 respectively. The income tax rate is 30%. What amount should be reported as loss from discontinued operation for 2021? a. 10,500,000 b. 20,000,000 c. 15,000,000 d. 14,000,000

Problem 7-4 (IFRS) r On September 30, 2021, when the carrying amount of the assets of a major subsidiary was P70,000,000, Young Company signed a legally binding contract to sell the subsidiary. The sale is expected to be completed by January 31, 2022 at a selling price of P60,000,000. In addition, prior to January 31, 2022, the sale contract obliged the entity to terminate the employment of certain employees of the business segment incurring an expected termination cost of P5,000,000 to be paid on June 30, 2022. The segment's revenue and expenses for 2021 were P40,000,000 and P45,000,000 respectively. The income tax rate is 30%. What amount should be reported as loss from discontinued operation for 2021? a. 10,500,000 b. 20,000,000 c. 15,000,000 d. 14,000,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 12MC: (Appendix 14.1)Pamlico Company has a 500,000, 15%, 3-year note dated January 1, 2019, payable to...

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(Appendix 14.1)Pamlico Company has a 500,000, 15%, 3-year note dated January 1, 2019, payable to Forest National Bank. On December 31, 2020, the bank agreed to settle the note and unpaid interest of 75,000 for 50,000 cash and marketable securities having a current market value of 375,000. Pamlicos acquisition cost of the securities is 385,000. Ignoring income taxes, what amount should Pamlico report as a gain from the debt restructuring on its 2020 income statement? a. 65,000 b. 75,000 c. 140,000 d. 150,000
11. The following information pertains to Nonagon Company's biological assets at December 31, 2021: Price of assets in an active market , P 5,000,000 Estimated broker's and dealer's commissions, P 50,000 Transport and other costs expected to be incurred to bring the assets to the market, P 40,000 Selling price in a binding sale agreement, P 5,100,000 At what amount should the biological assets be presented on the statement of financial position?
15 Clegane Company had the following acquisitions of intangible assets in 2022: Franchise On January 31, 2022, Clegane signed an agreement to operate as franchisee of Clear Copy Service, Inc. for an initial franchise of P780,000. Of this amount, P300,000 was paid when the agreement was signed and the balance was payable in four annual payments of P120,000 each, beginning January 31, 2023. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The implicit rate for loan of this type is 12%. The agreement also provides the 1.5% of the revenue from the franchise must be paid to the franchisor annually. Clegane’s revenue from the franchise in 2022 was P9,500,000. Clegane estimates the useful life of the franchise to be ten years. At the end of 2022, the franchise recoverable amount was P610,000. Trademark On March 1, 2022 Clegane purchased for P400,000 a trademark for a very successful soft drink it markets under the name…
On September 30, 2021, when the carrying amount of the assets of a major subsidiary was P70,000,000, Young Company signed a legally binding contract to sell the subsidiary. The sale is expected to be completed by January 31, 2022 at a selling price of P60,000,000. In addition, prior to January 31, 2022, the sale contract obliged the entity to terminate the employment of certain employees of the business segment incurring an expected termination cost of P5,000,000 to be paid on June 30, 2022. The segment's revenue and expenses for 2021 were P40,000,000 and P45,000,000 respectively. The income tax rate is 30%. What amount should be reported as loss from discontinued operation for 2021? a. 10,500,000 b. 20,000.000 c. 15.000.000 d. 14,000,000
Use the following to answer questions 8 through 10: On May 1, 2021, Jazzie Co. agreed to sell the assets of its Mister Division to Shawna Inc. for $80 million. The sale was completed on December 31, 2021. Jazzie’s year ends on December 31st. The following additional facts pertain to the transaction: The Mister Division qualifies as a component of an entity as defined by GAAP. Mister's net assets totaled $48 million on Jazzie's books at the time of the sale. Mister incurred a pre-tax operating loss of $10 million in 2021. Jazzie’s income tax rate is 40%. In the 2021 income statement for Jazzie Co., they would report after tax income from discontinued operations of: Group of answer choices $9.2 million. $13.2 million. $22 million. $26 million.
12. On May 1, Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2021. The following additional facts pertain to the transaction: The Footwear Division qualifies as a component of the entity according to GAAP regarding discontinued operations. The book value of Footwear's assets totaled $48 million on the date of the sale. Footwear's operating income was a pre-tax loss of $10 million in 2021. Foxtrot's income tax rate is 25%. In the income statement for the year ended December 31, 2021, Foxtrot Co. would report: Multiple Choice All income taxes combined into one line item. Income taxes separated for continuing and discontinued operations. Income taxes reported for income and gains only. None of these answer choices are correct.
On January 1, 20x1, Ai Inc. acquired all the assets and liabilities of Pon Corp. forP1,200,000. Pon Corpassets and liabilities have a fair value of P2,500,000 andP1,300,000, respectively.Additional Information:● Ai is the exclusive distributor of Pon's products. The agreement has aremaining term of five years. The contract does not have any cancellationclause.● The agreement has a fair value of P400,000, of which 30% is "at the market.”The off-market component is unfavorable to the Ai Inc.● No assets and liabilities related to the contract were recognized.How much is the "gain of bargain purchase" to be recognized by Ai Inc. as a result ofthe business combination?
5 On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. 2 points eBook Print References The book value of the assets of the segment at the time of the sale was $12 million. The loss from operations of the segment during 2024 was $4.5 million. Pretax income from other continuing operations for the year totaled $6.6 million. . The income tax rate is 25%. . · ● Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. CALIFORNIA MICROTECH CORPORATION Partial Income Statement For the Year Ended December 31, 2024 Income from continuing…
5. On December 31, 2024, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. Consider the following additional information. The book value of the assets of the segment at the time of the sale was $12 million. The loss from operations of the segment during 2024 was $4.5 million. Pretax income from other continuing operations for the year totaled $6.6 million. The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.
L2-4 Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows: 31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2 200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000) 100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2
Ma2. On May 28, 2024, Pesky Corporation acquired all of the outstanding common stock of Harman, Incorporated, for $420 million. The fair value of Harman's identifiable tangible and intangible assets totaled $512 million, and the fair value of liabilities assumed by Pesky was $150 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2024. Management has provided the following information: Fair value of Harman, Incorporated $ 400 million Fair value of Harman’s net assets (excluding goodwill) 370 million Book value of Harman’s net assets (including goodwill) 410 million Required: Determine the amount of goodwill that resulted from the Harman acquisition. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2024, if any. If an impairment loss is required, prepare the journal entry to record the loss
Scenario 4: On January 1, 2020, Green Co, a company that adopts IFRS, acquired a 40% interest in Yellow Co for BD300,000. At the date of acquisition, Yellow Co's net assets had a carrying value of BD550,000 and a fair value of BD600,000. The difference between the carrying and fair values is attributable to the equipment being depreciated over ten years. Green Co has been represented on Yellow Co's board of directors and has actively participated in the company's policy-making process. During 2020, Yellow Co had a net income of BD90,000 and paid a BD40,000 dividend. Please can you write the financial reporting?