TYLER company, has sustained heavy losses over a period of time and conditions warrant that TYLER undergo a quasi reorganization on December 31, 2012. *Inventory with cost of P26,000,000 was recorded on December 31, 2012 at its market value of P24,000,000. *Property, Plant & Equipment were recorded on December 31, 2012 at P48,000,000, net of accumulated depreciation. The sound value was P32,000,000. *On December 31, 2012, the share capital is P28,000,000 consisting of 2,800,000 shares with par value of P10, the share premium is P6,400,000, and the deficit in retained earnings is P3,600,000. *The par value of the share is to be reduced from P10 to P5. Immediately after the quasi-reorganization, what is the total shareholders’ equity?

TYLER company, has sustained heavy losses over a period of time and conditions warrant that TYLER undergo a quasi reorganization on December 31, 2012. Inventory with cost of P26,000,000 was recorded on December 31, 2012 at its market value of P24,000,000. Property, Plant & Equipment were recorded on December 31, 2012 at P48,000,000, net of accumulated depreciation. The sound value was P32,000,000. On December 31, 2012, the share capital is P28,000,000 consisting of 2,800,000 shares with par value of P10, the share premium is P6,400,000, and the deficit in retained earnings is P3,600,000. The par value of the share is to be reduced from P10 to P5. Immediately after the quasi-reorganization, what is the total shareholders’ equity?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

See similar textbooks

Similar questions

3. On January 1, 2011, Villa Company classified as held for sale a noncurrent asset with a carrying amount of P5,000,000. On this date, the asset is expected to be sold for P4,600,000. Reasonable disposal cost to be incurred on sale is expected at P200,000. By December 31, 2011, the asset had not been sold and management after considering its options decided to place back the noncurrent asset into operations. On that date, the entity estimated that the noncurrent asset is expected to be sold at P4,300,000 with disposal cost of P50,000. The carrying amount of the noncurrent asset is P4,000,000 on December 31, 2011 if the noncurrent asset is not classified as held for sale. What is the carrying amount of the asset that should be reported in the statement of financial position on December 31, 2011? a. 5,000,000 b. 4,000,000 c. 4,400,000 d. 4,250,000
19. In 2020, Roy Industries decided to discontinue its Laminating Division, a separately identifiable component of Roy's business. At December 31, 2020, the division has not been completely sold. However, negotiations for the final and complete sale are progressing in a positive manner, and it is probable that the disposal will be completed within a year. Analysis of the records disclosed the following:Operating loss for the year P899,000Loss on disposal of some assets during 2020 50,000Expected operating loss in 2021 450,000Expected gain in 2021 on disposal of division 200,000 Assuming a 35% tax rate, how much will be reported as loss from discontinued operations in Roy's 2020 income statement? P_________ Use the following information for the next two questions. Presented below are the condensed income statements ofRobert Corporation for the years ended…
4. Enron Company decided on August 1, 2011 to dispose of a component of its business. The component was sold on November 30, 2011. Enron's income for 2011 included income of P5,000,000 from operating the discontinued segment from January 1 to the sale date. Enron incurred a loss on the November 30 sale of P4,500,000. Ignoring income tax, what amount should be reported in the 2011 income statement as income or loss under "discontinued operation"? a. 4,500,000 loss b. 5,000,000 income c. 500,000 loss d. 500,000 income
14 DUFFLE Corp. had the following data ascertained before liquidation: Total book value of the assets were P250,000. The book value of the inventories, P80,000 had an excess in the amount of P26,000 over its estimated fair value. The equipment’s estimated fair value had an excess in the amount of P2,500 over its book value of P120,000. Included in the book value of the assets was prepaid expenses of P18,000 which was considered worthless. Other assets not mentioned above have an estimated fair value which was P15,000 less than its book value. Total liabilities were P200,000. The accounts payable in the amount of P70,000 was secured by the inventories while the notes payable in the amount of P95,000 was secured by the equipment. Other liabilities not mentioned includes salaries and taxes in the amount of P12,500. What is the amount of net free assets? Group of answer choices 50,000 44,500 32,000 93,000
15 DUFFLE Corp. had the following data ascertained before liquidation: Total book value of the assets were P250,000. The book value of the inventories, P80,000 had an excess in the amount of P26,000 over its estimated fair value. The equipment’s estimated fair value had an excess in the amount of P2,500 over its book value of P120,000. Included in the book value of the assets was prepaid expenses of P18,000 which was considered worthless. Other assets not mentioned above have an estimated fair value which was P15,000 less than its book value. Total liabilities were P200,000. The accounts payable in the amount of P70,000 was secured by the inventories while the notes payable in the amount of P95,000 was secured by the equipment. Other liabilities not mentioned includes salaries and taxes in the amount of P12,500. What is the estimated loss n asset realization?
60. ABC Company is in a capital deficiency position and is considering the possibility of liquidation. An analysis of the assets and liabilities of the entity is provided: Assets at net realizable value (pledged against liabilities of P150,000) P250,000 Assets at net realizable value (pledged against liabilities of P260,000) 100,000 Assets at net realizable value (not pledged against any liabilities) 160,000 Liabilities with priority 85,000 Unsecured creditors 400,000 Round off the estimated recovery percentage to XX.XX%, if needed. How much is the estimated payment to fully secured creditors?
FFF Company had sustained heavy losses over a period of time and conditions warrant that the entity should undergo a quasi-reorganization on December 31, 2020.-Inventory with cost of P6,500,000 was recorded on December 31, 2020 at the market value of P6,000,000-Property, Plant and Equipment were recorded on December 31, 2020 at P12,000,000, net of accumulated depreciation. The sound value was P8,000,000-On December 31, 2020, the share capital is P7,000,000 consisting of 700,000 shares with par value of P10, the share premium is P1,600,000, and the deficit in retained earnings is P900,000-The par value of the share is to be reduced from P10 to P5Immediately after the quasi-reorganization, what is the total shareholders' equity?
16 All the issued and outstanding common stock of MOA Company were brought by Aura Company on October 1, 2020 for P700,000. The assets and liabilities of Aura Company were: Cash 50,000 Accounts receivable (net of P25,000 allowance for bad debts) 250,000 Inventory 150,000 Property & Equipment (net of P100,000, allowance for depreciation) 300,000 Accounts payable 130,000 On October 1, 2020 the fair value of the following assets was as follows: Accounts receivable (net) 235,000 Inventory 130,000 Property & equipment (net) 400,000 There is an unrecorded warranty liability on prior-product sales estimated P20,000 discounted cash flow based on estimated future cash flows. The amount of goodwill as a result of the business combination should be: Group of answer choices 65,000 100,000 35,000 Zero
Journal entries Logan Corp. has incurred losses from operations for many years. At the recommendation of the newly hired president, the board of directors noted to implement a quasi-reorganization, subject to the stockholders' and creditors' approval. Immediately, prior to the quasi-reorganization, on June 30, 2016, Logan's balance sheet was as follows: AssetsCurrent assets P1,375,000 Property, plant and equipment 3,375,000 Other noncurrent assets 500,000Total assets P5,250,000 Liabilities and Stockholders' Equity Total liabilities P1,500,000Ordinary shares, P10 par value 4,000,000 Additional paid-in capital 750,000Deficit (1,000,000)Total liabilities and stockholders' equity P5,250,000The stockholders and creditors approved the quasi-reorganization effective July 1, 2016, to be accomplished by a reduction in property, plant, and equipment (net) P875,000, a reduction in other noncurrent assets of P375,000, and a reduction in par value from P10 to P5.
1.In February 2019, Wall Corp decided to sell its entire Plant division. The Plant division was a major part of Wall Corp's business and the sale will result in a strategic change in direction for the company. The sale was completed in January 2020 and resulted in a gain on disposal of P500,000. In 2019 Plant's net losses were P350,000 and P20,000 in 2020 up until the date of sale. Excluding taxation, what should the net gain/(loss) to be reported in the income statements of Wall Corp for its Plant division? A.2019 (P350,000) / 2020 P500,000 B. 2019 (P350,000) / 2020 P480,000 C. 2019 P230,000 / 2020 P0 D. 2019 P0 / 2020 P230,000
7 DUFFLE Corp. had the following data ascertained before liquidation: Total book value of the assets were P250,000. The book value of the inventories, P80,000 had an excess in the amount of P26,000 over its estimated fair value. The equipment’s estimated fair value had an excess in the amount of P2,500 over its book value of P120,000. Included in the book value of the assets was prepaid expenses of P18,000 which was considered worthless. Other assets not mentioned above have an estimated fair value which was P15,000 less than its book value. Total liabilities were P200,000. The accounts payable in the amount of P70,000 was secured by the inventories while the notes payable in the amount of P95,000 was secured by the equipment. Other liabilities not mentioned includes salaries and taxes in the amount of P12,500. what is the estimated recovery percentage for the notes payable? Group of answer choices 96.14% 95.90% 100% 96.43%
11 Tsup-Tsup Corporation filed a bankruptcy petition on January 2009. On March 1, 2009, the trustee provided the following information about the corporation’s financial affairs: Assets Book value Realizable Value Cash P40,000 P40,000 Accounts receivable-net 200,000 150,000 Inventories 300,000 140,000 Plant assets-net 500,000 560,000 Total Assets P1,040,000 Liabilities Liabilities for priority claims P160,000 Accounts payable-unsecured 300,000 Notes payable, secured by Accounts receivable 200,000 Mortgage payable,…