Use the following information for the next five questions: On January 1, 20x1, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On acquisition date, Bass Co. elected to measure non-controlling interest at fair value. Bass Co.'s management believes that the fair value of the consideration transferred correlates to the fair value of the controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair value of the remaining interest. Guitar Co.'s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000, respectively. The difference is attributable to a building with a remaining useful life of 6 years. The December 31, 20x1 statements of financial position of Bass Co. and Guitar Co. are summarized below: Bass Co. Guitar Co. ASSETS Investment in subsidiary (at cost) 300,000 - Other assets 1,372,000 496,000 TOTAL ASSETS 1,672,000 496,000 LIABILITIES AND EQUITY Trade and other payables 292,000 120,000 Share capital 940,000 200,000 Retained earnings 440,000 176,000 Total equity 1,380,000 376,000 TOTAL LIABILITIES AND EQUITY 1,672,000 496,000 No dividends were declared by either entity during year. There were also no inter-company transactions and impairment in goodwill. 1. What amount of goodwill is presented in the consolidated statement of financial position on December 31, 20x1? a. 40,000 b. 35,000 c. 20,000 d. 15,000 2. How much is the consolidated total assets as of December 31, 20x1? a. 1,867,000 b. 1,907,000 c. 1,958,000 d. 1,974,000 3. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 20x1? a. 106,500 c. 136,500 b. 116,500 d. 146,500 4. How much is the consolidated retained earnings on December 31, 20x1? a. 489,500 c. 534,500 b. 498,500 d. 543,500 5. How much is the consolidated total equity on December 31, 20x1? a. 1,546,000 c. 1,642,000 b. 1,564,000 d. 1,624,000
Use the following information for the next five questions:
On January 1, 20x1, Bass Co. issued equity instruments in exchange for 75% interest in Guitar Co. On
acquisition date, Bass Co. elected to measure non-controlling interest at fair value. Bass Co.'s
management believes that the fair value of the consideration transferred correlates to the fair value of the
controlling interest acquired and that the fair value of the controlling interest is proportionate to the fair
value of the remaining interest.
Guitar Co.'s net identifiable assets have carrying amount and fair value of ₱300,000 and ₱360,000,
respectively. The difference is attributable to a building with a remaining useful life of 6 years.
The December 31, 20x1 statements of financial position of Bass Co. and Guitar Co. are summarized
below:
Bass Co.
Guitar Co.
ASSETS
Investment in subsidiary (at cost)
300,000 -
Other assets 1,372,000 496,000
TOTAL ASSETS 1,672,000 496,000
LIABILITIES AND EQUITY
Trade and other payables 292,000 120,000
Share capital 940,000 200,000
Total equity 1,380,000 376,000
TOTAL LIABILITIES AND EQUITY 1,672,000 496,000
No dividends were declared by either entity during year. There were also no inter-company transactions
and impairment in
1. What amount of goodwill is presented in the consolidated
December 31, 20x1?
a. 40,000
b. 35,000
c. 20,000
d. 15,000
2. How much is the consolidated total assets as of December 31, 20x1?
a. 1,867,000
b. 1,907,000
c. 1,958,000
d. 1,974,000
3. How much is the non-controlling interest in the net assets of the subsidiary on December 31, 20x1?
a. 106,500 c. 136,500
b. 116,500 d. 146,500
4. How much is the consolidated retained earnings on December 31, 20x1?
a. 489,500 c. 534,500
b. 498,500 d. 543,500
5. How much is the consolidated total equity on December 31, 20x1?
a. 1,546,000 c. 1,642,000
b. 1,564,000 d. 1,624,000
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