Stick Company reports net assets with a book value and fair value of $202.000. Paste Corporation acquires 75 percent ownership for $151,500. Paste reports net assets with a book value of $514,000 and a fair value of $642.000 at that time, excluding its investment in Stick Required: For each of the following, compute the amounts that would be reported immediately after the combination under current accounting practice: a. Consolidated net identifiable assets. b. Noncontrolling interest. a. Consolidated net identifiable assets b. Noncontrolling interest

Stick Company reports net assets with a book value and fair value of $202.000. Paste Corporation acquires 75 percent ownership for $151,500. Paste reports net assets with a book value of $514,000 and a fair value of $642.000 at that time, excluding its investment in Stick Required: For each of the following, compute the amounts that would be reported immediately after the combination under current accounting practice: a. Consolidated net identifiable assets. b. Noncontrolling interest. a. Consolidated net identifiable assets b. Noncontrolling interest

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 38P

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Stick Company reports net assets with a book value and fair value of $204,000. Paste Corporation acquires 75 percent ownership for $153,000. Paste reports net assets with a book value of $512,000 and a fair value of $633,000 at that time, excluding its investment in Stick. Required: For each of the following, compute the amounts that would be reported immediately after the combination under current accounting practice: Consolidated net identifiable assets. Noncontrolling interest.
On January 1, 20X1, Par Inc acquires 85.77% of Sub Corp for $211,625 in cash. Immediately before the acquisition, the book value of Sub's identifiable net assets was $143,426 with a fair value of $161,060, while the book value of Par's net assets was $282,155. What will be the amount of total shareholders' equity on the consolidated balance sheet immediately after the acquisition if the fair-value-enterprise (FVE) method is used? $309,334 b. $333,129 c. $301,402 d. $317,265 e. $325,197
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.
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At the beginning of the current year, an entity acquired 40% of the outstanding ordinary shares of another entity for P7,000,000 when the net assets of the investee amounted to P10,000,000. At acquisition date, the carrying amounts of the identifiable assets and liabilities of the investee were equal to fair value, except for land whose fair value was P2,000,000 greater than carrying amount and inventory whose fair value was P1,500,000 greater than cost. The land was sold in the current year and one-half of the inventory was sold during the current year. During the current year, the investee reported net income of P8,000,000, issued 10% share dividend and paid cash dividend on P2,500,000. What is the investment income for the current year? a. 3,200,000 b. 2,100,000 c. 2,900,000 d. 2,400,000 What is the carrying amount of the investment in associate at year-end? a. 8,900,000 b. 8,100,000 c. 9,200,000 d. 8,400,000
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On January 1, 2020, Pail Corporation acquired 80 percent of Sand Company's common stock for $540,000 cash. The fair value of the noncontrolling interest at that date was determined to be $135,000. At December 31, 2020, Pail reported on its general ledger Investment in Sand at $947000. What amount of Investment in Sand would be reported on the 12/31/20 consolidated Balance Sheet?