Weavile Company acquires 25% of Rhyperior Company's common stock for P380,000 cash and carries the investment using the cost method. After three months, Weavile purchases another 55% of Rhyperior's common stock for P1,100,000. On this date, Rhyperior reports identifiable assets with carrying value of P1,800,000 and fair value of P2,300,000 and it has liabilities with a book value and a fair value of P700.000. The fair value of the 20% non-controlling interest is P360,000.Goodwill valued on the fair value basis

Q: On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash.…

Q: 1.Assume no significant influence was acquired. Prepare the appropriate journal entries from the…

A: Requirement 1:   Pass necessary journal entry.

Q: Press Company acquires 15 percent of Secretary Company's common stock for P600,000 cash and carries…

A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…

Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Fair value of net identifiable assets = Fair value of identifiable assets - Fair value of…

Q: On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash.…

Q: Legan, Inc., acquired 10 percent of Barta Corporation on January 1, 2017, for $186,000 and…

A: Journal entries are used to record various accounting transactions which was done by the business…

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 January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash…

A: In the consolidated balance sheet, the total assets are determined after adjusting depreciation on…

Q: On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash…

A: Consolidation is a process where income statement and balance sheet of BB (parent) and SS…

Q: On April 1, Pujols, Inc., exchanges $430,000 fair-value consideration for 70 percent of the…

A: Non-Controlling Interest: It refers to an ownership position where a shareholder owns less than…

Q: On January 1, 2018, Pine Company owns 40 percent (124,000 shares) of Seacrest, Inc., which it…

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: Wang Acquires 100% of Chen on January 1,2010 and will operate Chen as a separate subsidairy. In the…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Assume that the acquisition took place on January 1. What figures would appear in a consolidated…

A: Preparation of consolidated income statement are as follows:

Q: On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker…

A: a.

Q: As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 510,000…

A: When a company holds 20% or more of the shares of another company it shall be said to have…

Q: Pederson Company acquires the net assets of Shelby Company by issuing 100,000 of its $1 par value…

A: Calculation of net identifiable assets is as follows: Resultant table: Calculation of value of…

Q: Parekoy Company acquires 150,000 of the 1,000,000 Marekoy Company’s common stock for  P500,000 cash…

A: Under the full goodwill method, the goodwill is calculated by using the fair value of…

Q: [The following information applies to the questions displayed below.] As a long-term investment,…

A: The appropriate journal entries from the purchase through the end of the year ( assuming no…

Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…

A: Consolidated financial statements are the one which are prepared when one or two subsidiaries are…

Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Working note: Computation of fair value of the previously acquired 15% common stock of K Company:…

Q: egistering and iss

A: It is given that the balance sheet information of January 2, 2021 PAMIGAY CORP.

Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…

A: Where shares are held as investments for short-term (current assets), the shares are recorded at…

Q: P Company acquires 15% of Subsidiary Company’s ordinary shares for P500,000 cash and carries the…

A: Goodwill:- The term “goodwill” pertains to that intangible asset that appears into play only when a…

Q: Of the amount paid for the investment, how much is attributable to goodwill? How much is the…

A: Acquisition costs are the sum of the costs incurred by the business in acquiring a new client or…

Q: uires 15% of Subsidiary Company’s ordinary shares for P500,000 cash and carries the investment using…

A: Consolidation statement:  When one company takes over another company's share by paying purchase…

Q: Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,…

A: Journal Entry - It is record of each and every business transactions whether it is economic or non…

Q: On January 1, 2021, Pine Company owns 40 percent (76,000 shares) of Seacrest, Ic., which it…

A: If a company have ownership in another company, its assets and liabilities are subject to…

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: Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: Gross profit rate=Sales price-CostSales price×100

Q: On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, ABC Company purchased 80% of the stock of XYZ for P4,000,000 cash.…

Q: At the beginning of current year, Cynosure Company purchased 30% of the ordinary shares of another…

A: Solution: Net fair value of assets = P7,000,000 + P1,500,000 + P500,000…

Q: On January 1, 2020, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: P Company acquires 15% of Subsidiary Company’s ordinary shares for P500,000 cash and carries the…

A: Consolidation statement:- When one company takes over another company's share by paying purchase…

Q: What is the amount of consolidated assets on December 31?

A: Investment in subsidiary does not reported in consolidation financial statement because the parent…

Q: P Company acquires 15% of S Company’s ordinary shares for P500,000 cash and carries the investment…

A: Goodwill on consolidation = Purchase consideration paid - fair value of net assets acquired

Q: P Company acquires 15% of Subsidiary Company’s ordinary shares for P500,000 cash and carries the…

A: Goodwill arises on the acquisition of the subsidiary company by the parent company. Goodwill is the…

Q: Poppy Corporation acquires Stevens Company, paying the owners of Stevens 1,000,000 new shares with a…

A: Given that, Poppy issue 1,000,000 shares to stevens. Par value of share = $0.50  Fair value of share…

Q: Conroy Financial paid $530,000 for a 20% investment in the common stock ofMaverick, Inc. For the…

A: 1. Which method is appropriate for Conroy to use in its accounting for its investment inMaverick?…

Q: TRICKY Company acquires 25% of JOKER Corporations ordinary shards for P190,000 cash and carries the…

A: Goodwill is calculated as the difference between the amount of consideration transferred from…

Q: At the beginning of the current year, Occidental Company purchased 40% of the outstanding ordinary…

A: Correct answer is option (a) 1,350,000.

Q: On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: TRICKY Company acquires 25% of JOKER Corporation’s ordinary shares for P190,000 cash and carries the…

A: Goodwill is an intangible asset that accounts for the excess purchase price of another company.…

Q: TRICKY Company acquires 25% of JOKER Corporation’s ordinary shares for P190,000 cash and carries the…

A: Total fair value on acquisition date = Purchase of 25% share + Purchase of 60% share + fair value of…

Q: Senpai Company acquires 15% of Kohai Company's common stock for P600,000 cash and carries the…

A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…

Q: At the beginning of current year, Cynosure Company purchased 40% of the ordinary shares of another…

A: The following computations are done for Cynosure Company.

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: At the beginning of current year, Cinnamon Company purchased 40% of the ordinary shares of another…

A: Acquisition by a company shares of another entity is known as the acquisition of business or…

Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…

A: Goodwill refers to the form of an intangible asset that reflects the overall reputation of the…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary sha…

A: When shares for investment are purchased, they are recorded at the cost. At the end of every…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.