Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $502,200. At the time of the combination, Station reported common stock outstanding of $123,000 and retained earnings of $390,000, and the fair value of the noncontrolling interest was $55,800. The book value of Station's net assets approximated market value except for patents that had a market value of $45,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Station reported net income of $65,000 and paid dividends of $23,000 during 20x1. Required: a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the equity method in accounting for its investment? Balance in investment account
Q: On December 30, Draco, Inc. acquired a 100% ownership interest in Lamya Corporation at a cost of…
A: After consolidation in the balance sheet, stockholder equity of only Draco, Inc. is reported. So,…
Q: Phelp Corporation acquired 80% of the voting stock of Sam Inc. at an acquisition cost of $450,000 on…
A: In the given question we are provided with the information of Phelp Corporation. With the given data…
Q: Witch acquired 70% of the 200,000 equity shares of Wizard, its only subsidiary, on 1 April 20X8 when…
A: We have the following information: Witch acquired 70% of the 200,000 equity shares of Wizard…
Q: January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for…
A: As per IFRS 3 business combination, at the time of acquisition all assets and liabilities are valued…
Q: RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1, for P280,000. RR’s…
A: All assets, liabilities, equity, income, expenses, and cash flows of the parent business and its…
Q: Parent Company acquired 15% of Subsidiary Company's common stock for P500,000 cash and carried the…
A: Calculation of the amount of goodwill to be recognized.
Q: On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company.…
A: a. Journal entries to record acquisition of assets and liabilities.
Q: Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In…
A:
Q: On January 1, 20x1, John Corp. acquired the identifiable net assets of Jose Corp. by paying cash of…
A: Lets understand the basics. When acquirer acquires the acquiree then they pay the consideration in…
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: STI Co. acquired 55% of the outstanding shares of UE Inc on August 1, 2021 at a total cost of…
A: Non Controlling Interest For the calculation of non controlling interest the minority interest which…
Q: On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company.…
A: Common stock is a type of security which provides ownership to the holder in the company. These…
Q: ublic Corporation acquired 90 percent of Station Company’s voting common stock on January 1, 20X1,…
A: Step 1 Journal is the part of book keeping.
Q: On January 1, 20X1, Par Inc acquires 85.77% of Sub Corp for $211,625 in cash. Immediately before the…
A: 1. Fair value method 2. net assets method
Q: Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for…
A: Consolidated financial statements can be defined as those financial statements where the balance…
Q: Posada Company acquired 7,000 of the 10,000 outstanding shares of Sabathia Company on January 1,…
A: In the context of financial accounting, consolidation refers to the aggregation of financial…
Q: RR Corporation acquired 80 percent of the stock of GG Company by issuing shares of its common stock…
A: working notes 1) Computation of Net assets of GG Company Particulars Amount PHP…
Q: On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company.…
A: Consolidation Worksheet: Consolidated financial statements of a parent and its subsidiaries is…
Q: RR Corporation acquired 80 percent of the stock of GG Company by issuing shares of its common stock…
A: A business combination refers to the transaction or agreement in which the acquirer obtains the…
Q: Donut Inc. issued 20,000 common shares in exchange for all the outstanding shares of Munchkin Inc.…
A: Purchase consideration is the consideration paid or payable in cash or in-kind including in the form…
Q: X Corporation acquired 80 percent of Y Corporation’s outstanding capital stock for $430,000 cash.…
A: At the time of acquisition of shares or business of another company, if amount paid is more than the…
Q: Pawn Corporation acquired 70 percent of Shop Corporation's voting stock on January 1, 20X2, for…
A: The question is based on the concept of Financial Accounting.
Q: Prophet Corporation acquired 75 percent of Seer Corporation's voting common stock on December 31,…
A: In the context of the given question, we are required to prepare journal entries and a consolidated…
Q: Parent Company acquired 15% of Subsidiary Company's common stock for P500,000 cash and carried the…
A: Consolidation statement:- When one company takes over another company's share by paying purchase…
Q: Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for…
A: Journal entries are the first step of keeping records of business transactions in books of accounts…
Q: Prime Company acquired 100 percent of the voting common shares of Standard Video Corporation, its…
A: The acquisition is said to be occured when a firm owns more than 50% share of the other company.
Q: On January 1, 2013, Pepper Corporation acquired 90 percent of Salt Company's voting common stock for…
A: A Holding company is a company that owns and controls the operations of the other entity. The…
Q: Pepper Company acquired 80% of the voting stock of Salt Company on January 1, 20x1, when Salt…
A: Non-controlling interest refers to those shareholders of a company who have less than 50%…
Q: DC Company purchased 100% of the outstanding common shares of FA Company on December 31, 20X3 for…
A: At the time of business combination, if the fair value of an asset exceeds its carrying amount, the…
Q: On December 31, 20X8, Mercury Corporation acquired 100 percent ownership of Saturn Corporation. On…
A: Acquisition of the company means when one company acquires another company either only some…
Q: Pop Corporation (PC) purchased 75% of the voting stock of Samantha Company (SC) on January 1, 20X1…
A: In the above-mentioned question, it is given that, the Pop corporation purchased 75% stock of…
Q: On January 1, 20x1, Pine Corp acquired 75% interest in Sine Inc. for P2,400,000. On that date Sine…
A: Non-controlling interests, also known as minority interests, are ownership rights in which…
Q: On January 1, 2013, Pepper Corporation acquired 90 percent of Salt Company's voting common stock for…
A: Holding companies are those that own and control the functioning of the other entity. They are also…
Q: Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $195,000. The trial…
A: It is one of the important tools, to prepare the consolidated financial statements of patent and…
Q: X Corporation acquired 80 percent of Y Corporation’s outstanding capital stock for $430,000 cash.…
A: Consolidated Balance sheet: It is a form of balance sheet that is prepared only in case when one…
Q: Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1,…
A: Consolidated financial statements are those statements that are prepared to present the assets,…
Q: Prime Company acquired 100 percent of the voting common shares of Standard Video Corporation, its…
A: Prime company acquired voting common shares of Standard video corporation. Purchase consideration =…
Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at…
A: Journal entry is the process of recording the business transaction in the accounting books for the…
Q: Pete Corporation and Sol Company agreed to combine their businesses, with Pete Corporation as the…
A:
Q: On January 1, 20X8, Ramon Corporation acquired 80 percent of Tester Company's voting common stock…
A: Depreciation: It implies to a decrease in fixed asset's value as a result of normal wear & tear,…
Q: Moss Company owned 20% of Dubro Company’s preference share capital and 80% of the ordinary share…
A: Equity: Equity is part of the ownership contribution in a company that holds ownership in a company…
Q: Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at…
A: The consolation is the accounting process in which the financial results of the parent company and…
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: RR Corporation acquired 80 percent of the stock of GG Company by issuing shares of its common stock…
A: The question is related to Consolidated. The details are as under RR Corporation Share = 80%…
Q: Parent Company acquired 15% of Subsidiary Company’s common stock for P500,000 cash and carried the…
A: Acquisition of 15% share value is P500,000 The parent company has the 60% of shares in the…
Q: RR Corporation acquired 80 percent of the stock of GG Company by issuing shares of its common stock…
A: A business combination refers to the transaction or agreement in which the acquirer obtains the…
Q: Compute the balance of Buildings and Equipment, net to be reported in the consolidated balance sheet…
A: While preparing consolidated balance sheet, all the assets and liabilities of both companies would…
Q: Compute the balance of Inventory to be reported in the consolidated balance sheet immediately after…
A: RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1 thus RR Records Inc. is…
Q: Highpoint owns a 95 percent majority voting interest in Middlebury. In turn, Middlebury owns an 80…
A: Hey, since there are multiple sub-parts posted, we will answer the three sub-parts. If you want any…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Public Corporation acquired 90 percent of Station Company’s voting common stock on January 1, 20X1, for $507,600. At the time of the combination, Station reported common stock outstanding of $127,000 and retained earnings of $382,000, and the fair value of the noncontrolling interest was $56,400. The book value of Station’s net assets approximated market value except for patents that had a market value of $55,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Station reported net income of $75,000 and paid dividends of $23,000 during 20X1.Required: Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December 31, 20X1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the basic consolidation entry. 2. Record the amortized excess value reclassification entry. 3. Record the excess value…On January 1, 20X8, Ramon Corporation acquired 80 percent of Tester Company's voting common stock for $300,000. At the time of the combination, Tester reported common stock outstanding of $200,000 and retained earnings of $110,000, and the fair value of the noncontrolling interest was $75,000. The book value of Tester's net assets approximated market value except for patents that had a market value of $40,000 more than their book value. The patents had a remaining economic life of five years at the date of the business combination. Tester reported net income of $40,000 and paid dividends of $10,000 during 20X8. What is the amount of Total Excess Depreciation that will be recorded for 20X8? Group of answer choices $6,000 $5,000 $8,000 $40,000Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $109,200. At that date, the noncontrolling interest had a fair value of $46,800 and Soda reported $71,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: On December 31, 20X2, Soda purchased inventory for $35,000 and sold it to Pop for $50,000. Pop resold $30,000 of the inventory (i.e., $30,000 of the $50,000 acquired from Soda) during 20X3 and had the remaining balance in inventory at December 31, 20X3. During 20X3, Soda sold inventory purchased for $56,000 to Pop for $80,000, and Pop resold all but $23,000 of its…
- Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…
- Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…Planet Corporation acquired 100 percent of the voting common stock of Saturn Company on January 1, 20X7, by issuing bonds with a par value and fair value of $670,000 and making a cash payment of $24,000. At the date of acquisition, Saturn reported assets of $740,000 and liabilities of $140,000. The book values and fair values of Saturn’s net assets were equal except for land and copyrights. Saturn’s land had a fair value $16,000 higher than its book value. All of the remaining purchase price was attributable to the increased value of Saturn’s copyrights with a remaining useful life of eight years. Saturn Company reported a loss of $88,000 in 20X7 and net income of $120,000 in 20X8. Saturn paid dividends of $24,000 each year. Required: Assuming that Planet Corporation uses the equity method in accounting for its investment in Saturn Company, prepare all journal entries for Planet for 20X7 and 20X8.
- At the beginning of current year, Cynosure Company purchased 30% of the ordinary shares of another entity for P3,500,000 when the net assets acquired amounted to P7,000,000 At acquisition date, the carrying amounts of the identifiable assets and liabilities of the investee were equal to their fair value, except for equipment for which the fair value was P1,500,000 greater than carrying amount and inventory whose fair value was P500,000 greater than cost. The equipment has a remaining life of 4 years and the inventory was all sold during the current year. The investee reported net income of P4,000,000 and paid P1,000,000 dividends during the current year. Required: 1. Prepare journal entries for the current year. 2. Compute the investment income for the current year.RR Corporation acquired 80 percent of the stock of GG Company by issuing shares of its common stock with a fair value of P192,000. At that time, the fair value of non-controlling interest was estimated to be P48,000 and the fair values of its identifiable assets and liabilities were P310,000 and P95,000, respectively. GG’s assets and liabilities had book values of P220,000 and P95,000, respectively. Compute for "Investment in GG" reported by RR to be reported immediately after the combination Additional question: Using the same information above, compute for the increase in identifiable assets of the combined entity immediately after the combination.RR Corporation acquired 80 percent of the stock of GG Company by issuing shares of its common stock with a fair value of P192,000. At that time, the fair value of non-controlling interest was estimated to be P48,000 and the fair values of its identifiable assets and liabilities were P310,000 and P95,000, respectively. GG’s assets and liabilities had book values of P220,000 and P95,000, respectively REQUIRED: 1. Compute for the full-goodwill for the combined entity immediately after the combination. 2. Compute for the non-controlling interest (full-goodwill) reported in the consolidated balance sheet immediately after the combination.