WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45 million, of which $15 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $40 million; book value of SCC’s net assets (including goodwill), $42 million. What amount of impairment loss should WebHelper recognize?

Q: n January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000.…

A: FV of trade secret=Total acquisition value-Allocated to machine=$60,000-$50,000=$10,000

Q: On January 1, 2020, P Company purchased 32,000 shares of the 40,000 outstanding shares  of S Company…

A: Net Assets: Net Assets are the amounts which is determined as the difference between total assets…

Q: On August 1, 20x1, German Corp. acquired all the identifiable assets and assumed the liabilities of…

A: As per IFRS 3 Acquisition-related costs incurred by the acquiring company to effect the business…

Q: At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $51 million. At the…

A: Depreciation can be termed as a reduction in the value of an asset over its useful period when used…

Q: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $61,680.…

A: Non-controlling interest represents the shareholders that have a minority interest in the company.

Q: Witch acquired 70% of the 200,000 equity shares of Wizard, its only subsidiary, on 1 April 20X8 when…

A: We have the following information: Witch acquired 70% of the 200,000 equity shares of Wizard…

Q: 10% share dividend on December 31, 2021. The entity elected to use the equity method in accounting…

A: Equity method is an accounting technique used by a company to record the profits made by its…

Q: The Season Co. acquired a 70% interest in the Aloha Inc. for P1,960,000 when the fair value of Aloha…

A: As company choosed to apply net identificable assets/proportionate method

Q: Goodfellas acquired 70% of the 200,000 equity shares of Badfellas, its only subsidiary, on 1 April…

A: The question is based on the concept of Financial Accounting.

Q: January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $47,052. Calvin…

A: A financial statement that details the amounts of cash and cash equivalents that enter and leave a…

Q: On July 1, Zamora Inc. agreed to sell the assets of its Golfright Division to Benito Inc. for $71…

A: Once a division fulfills criteria to classify as a discontinued operation it shall be disclosed in…

Q: Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $120,600.…

A: Since you have posted multiple questions, we are solving the 1st question for you. If you want any…

Q: What is the gain to be reported on FLORIDA's December 31, 20X8 consolidated income statement?

A: P130,000 is the gain to be reported n FLORIDA's December 31, 20X8 consolidated income statement.…

Q: Sheffield Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of…

A: Impairment of loss: The impairment loss must be recorded so that the asset is written down. There is…

Q: Several years ago, Blaha Company purchased Husker Company as a subsidiary. At that time, Blaha…

A: Impairment of  goodwill  When the carrying value of goodwill on financial statements exceeds its…

Q: Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of…

A: Goodwill: Goodwill is an intangible asset. Goodwill is a reputation of a business which cannot be…

Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.1…

A: Goodwill is determined as an excess of the cost of a company acquired over the fair value of its net…

Q: Leni Co. acquired all of BBM Co's assets and liabilities on October 2, 2021. BBM reported assets…

A:

Q: Hilton Corporation sold a press to its 80%-owned subsidiary, Agri Fab Inc., for $5,000 on January 1,…

A: Introduction:   Consolidation is a process in which financial statements of subsidiary is merged…

Q: Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on…

A: As posted multiple sub parts questions we are answering first three sub parts only kindly repost the…

Q: On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company…

A:

Q: Cheyenne Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of…

A: Loss on impairment = Carrying value of goodwill - Fair value of goodwill

Q: Paddle Company purchased in the open market 80% of the share capital of Saddle Company on January 1,…

A: To calculate the acquisition cost of investment, first we should calculate the net asset value on…

Q: Matrix, Inc. acquired 20% of Neo Enterprises for $500,000 on January 1, 2015. The fair value and…

A: (1) Required journal entry under an equity method investment:

Q: Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on…

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

Q: goodwill (gain on bargain purchase)

A: Goodwill(gain on bargain purchase) = Purchase consideration - (Fair value of assets - Fair value of…

Q: Matrix, Inc. acquired 20% of Neo Enterprises for $500,000 on January 1, 2015. The fair value and…

A: Equity Method of InvestmentEquity method is used to value a company’s investment in another company…

Q: The Lampard Company acquired a 70% interest in The Ohau Company for P1,960,000 when the fair value…

A: Goodwill =   Purchase Consideration + Fair Value of NCI - Net Identifiable Assets               =…

Q: On May 1 Foxtrot Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80…

A: Operations that will not be part of future business operations are known as discontinued operations.…

Q: Matrix, Inc. acquired 20% of Neo Enterprises for $500,000 on January 1, 2015. The fair value and…

A:

Q: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $57,732.…

A: SOLUTION- CONSOLIDATED BALANCE SHEET  IS MERE CONSOLIDATION OF FINANCIAL DETAILS OF ALL A SUBSIDIARY…

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: Matrix, Inc. acquired 20% of Neo Enterprises for $500,000 on January 1, 2015. The fair value and…

A:

Q: Plum Corporation acquired 80% of Slum Co. for P 5,000,000 on January 2, 2019. On this date, Slam Co.…

A:

Q: Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At…

A: Consolidation Accounting It is the method  to combine financial results of subsidiary companies into…

Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45…

A: Goodwill:Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company…

Q: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $66,312.…

A: Consolidation is a term used for merging of several companies of an industry. The assets,…

Q: Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that…

A: Goodwill is refereed as the reputation of the business which is an intangibles asset that does not…

Q: Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $104,500.…

A: Journal Entry: Record the daily transactions/ entry in the journal is called journal entry. It is…

Q: On May 28, 2016, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for…

A:

Q: Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: equired: Show and label calculations. Calculate consolidated ending retained earnings reported on…

A: Consolidate financial statement:A financial statement in which the company reports financial…

Q: On March 1, 2010, JJ Corporation acquired for P 5,600,000 all of the assets of ZZ Company. On this…

A: The goodwill is calculated by deducting the fair value of the assets from the acquisition price.

Q: Jasper Company acquired 80% of Fey Company at the beginning of the current year. Jasper paid…

A:

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: On December 31, Phoenix Corporation acquired all of Sedona Corporation’s voting stock in exchange…

A: In the above question we have given data of two companies on the basis this we have to calculate…

Q: Matrix, Inc. acquired 25% of Neo Enterprises for $2,000,000 on January 1, 2014. The fair value and…

A: 1.

Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…