What amount of loss should Windy Co. recognize on Dec. 31, 20x1 if the shares were classified as:

Q: Albuquerque, Inc., acquired 16,000 shares of Marmon Company several years ago for $600,000. At the…

A: a. Prepare journal entries.

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

A: Requirement 1:   Pass necessary journal entry.

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: During the past several years the annual net income of Avery Company has averaged $540,000.At the…

A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…

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: 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: As a long-term investment, Fair Company purchased 20% of Midlin Company’s 120,000 shares for…

A: When investments are made in business less than 20% and also no significant influence was acquired,…

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 January 2, 20X1, Entity X purchases 75% of the common stock of Entity Y for P250,000. Entity Y…

A: Solution:

Q: Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $720,000. At the…

A: The following calculations are recorded in the records of Albuquerque, Inc. to show the computation…

Q: At the beginning of the current year, Big Company purchased 25% of the outstanding ordinary shares…

A: Investments in company for less than 50% is accounted using equity method. Under this method…

Q: At the beginning of the current year, FFF Company acquired 20% of the outstanding ordinary shares of…

A: Acquisition:- When one company acquires a stake in another company and gets the decision rights in…

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: On January 1, Tesco Company spent a total of $4,384,000 to acquire control over Blondel Company.…

A: value of Preferred stock = $ 424000 value of Common stock = $ 3960000 Fair value of Non…

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A: Assets: Assets are the company's financial resources from which they reimbursed all the company's…

Q: On January 1, Tesco Company spent a total of $4,384,000 to acquire control over Blondel Company.…

A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A:

Q: At the beginning of the year SassyCat acquired 30% of the outstanding common stock of LazyMouse for…

A: Formula: Book value of Assets value = Total Assets book value x percentage of shares acquired. Share…

Q: Wilson Company acquired 40 percent of Andrews Company at a bargain price because of losses expected…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: At the beginning of the current year, FFF Company acquired 20% of the outstanding ordinary shares of…

A: Current Investment Current Investment should valued at lower of cost or NRV whichever is lower…

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A: Financial statements: The financial statements are used by owners and different stakeholders for…

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: this date, the c

A: Introduction Investments in company for less than 50% is accounted using equity method. Under this…

Q: On January 1, 2013, the Moody Company entered into a transaction for 100% of the outstanding common…

A: Following assets are deemed to undervalued: Inventory: $280 + $10 = $290 Land: $360 + $40 = $400…

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A: Consolidated Financial Statement- Consolidated financial statements are fiscal statements that…

Q: In return for equipment with a fair worth of 150,000, Travis Co. chose to form a corporation and…

A: Deprecation may be defined as that type of operating expenses which occurs due to decrease in the…

Q: On January 1, Paisley, Inc., paid $560,000 for all of Skyler Corporation’s outstanding stock. This…

A:

Q: 6. In January 2002, Henry Corporation acquired 20 percent of the outstanding ordinary shares of…

A: When the asset is brought or purchased, the worth at that time is called carrying value of asset.

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A: The difference between the purchase price indicated for an acquired business and the price not…

Q: On January 1, 2015, Port Company acquires 8,000 shares of Solvo Company by issuing 10,000 of its…

A:

Q: As a long-term investment, Painters’ Equipment Company purchased 20% of AMC Supplies Inc.’s 400,000…

A: 1.

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A: For calculating the net income (loss) attributable to the non-controlling interest (NCI), we will…

Q: The fair value of Wallis, Inc.’s depreciable assets exceeds their book value by $50 million. The…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A: For determining the net income/(net loss) attributable to the controlling interest (NCI), we have to…

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: Determine the amount of goodwill or gain on bargain purchase from the above transaction. Give the…

A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…

Q: Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2019, in exchange for $351,000…

A: SOLUTION- GROSS PROFIT  ALSO CALLED GROSS INCOME IS CALCULATED BY SUBTRACTING THE COST OF GOOD SOLD…

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: 6. In January 2002, Henry Corporation acquired 20 percent of the outstanding ordinary shares of…

A: The question is related to Accounting for Associates. Required  What is the proper Carrying Amount…

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A: To determine the net income (net loss) attributable to the non-controlling interest, we have to do…

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: P Co acquired 75% of the shares in S Co on 1 January 20X2 when the retained earnings of S Co stood…

A: A consolidated financial position statement is a key fiscal summary if there should be an occurrence…

Q: During the year, Donahue Company purchased land and building by issuing 50,000 ordinary shares with…

A: solution given Fair value of land purchased 2000000 Fair value of land received 1800000…

Q: Albuquerque, Inc., acquired 16,000 shares of Marmon Company several years ago for $600,000. At the…

A: a.

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A: Consolidated expenses to be reported for the year:

Q: On January 1, ABC Acquired 60 percent of the outstanding voting stock of XYZ for P301,500 cash…

A: Calculation of Consolidated Expenses       Particulars  Amount  Expenses of ABC…

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: On January 1, 20x1, AAA Co. acquired 80% of the equity interests of BBB, Inc. in exchange for cash.…

A: Goodwill on Acquisition: For the purposes of accounting, goodwill is created when a buyer purchases…