Roku Company held 25% stake in Kyoshi Company on 1 January 2015 for 50,000 it purchased 20% additional holding in Kyoshi Company on 31 December 2016 for 30,000 and 15% on 31 December 2017 for 32,000. The book value of Roku Company’s total investment just before acquisition was 85,000 and the fair value of net identifiable assets of Kyoshi Company is 200,000 as at acquisition date. NCI is measured at fair value. How much is the non-controlling interest in the consolidated financial statements at the date of business combination? (Round off answer to nearest peso)
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Roku Company held 25% stake in Kyoshi Company on 1 January 2015 for 50,000 it purchased 20% additional holding in Kyoshi Company on 31 December 2016 for 30,000 and 15% on 31 December 2017 for 32,000. The book value of Roku Company’s total investment just before acquisition was 85,000 and the fair value of net identifiable assets of Kyoshi Company is 200,000 as at acquisition date. NCI is measured at fair value. How much is the non-controlling interest in the consolidated financial statements at the date of business combination? (Round off answer to nearest peso)
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- (i) On 01 January 2013, Gordon Plc acquired 75% of Brown Ltd for $300,000 when Brown`s share capital and reserves were $252,000. Prior to the acquisition, the net book value of Brown`s non-current assets was $90,000. Brown revalued its non-current assets immediately prior to the acquisition to fair value and included the revaluation in its statement of financial position. (ii) On 01 January 2015, Gordon acquired 20% of Boris Ltd for $72,000 when the fair value of Boris`s net assets were $42,000. (iii) Goodwill has been impaired in Brown by $77,700 and in Boris by $31,800 (iv) At the year end, Gordon Plc has inventory acquired from Brown and Boris. Brown had invoiced the inventory to Garden for $6,000 – the cost to Brown had been $1,200 and Boris had invoiced Gordon for $3,000 – the cost to Boris had been $1,800. REQUIRED (a) Prepare Gordon Plc`s Consolidated Statement of Financial Position as at 31 December 2019.On July 1, 2016, Killearn Company acquired 120,000 of the outstanding shares of Shaun Company for $15 per share. This acquisition gave Killearn a 20 percent ownership of Shaun and allowed Killearn to significantly influence the investee's decisions. As of July 1, 2016, the investee had assets with a book value of $7 million and liabilities of $148,000. At the time, Shaun held equipment appraised at $581,000 above book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $1,235,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun. Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $566,000 in 2016, $593,400 in 2017,…Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2016. Adams paid a total of $603,000 in cash for these shares. The 10 percent noncontrolling interest shares traded on a daily basis at fair value of $67,000 both before and after Adams’s acquisition. On December 31, 2016, Barstow had the following account balances: Book Value Fair Value Current assets $ 160,000 $ 160,000 Land 120,000 150,000 Buildings (10-year remaining life) 220,000 200,000 Equipment (5-year remaining life) 160,000 200,000 Patents (10-year remaining life) 0 50,000 Notes payable (due in 5 years) (200,000 ) (180,000 ) Common stock (180,000 ) Retained earnings, 12/31/16 (280,000 ) December 31, 2018, adjusted trial balances for the two companies follow: AdamsCorporation Barstow,Inc. Debits Current assets $ 610,000 $ 250,000 Land…
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