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- Q3 Mokhasimbe Limited owns 90% of Mphahlele Limited which in turn owns 80% of Nethengwe Limited. Nethengwe Limited owns 100% of Msoma Limited. Consolidated financial statements should be prepared to report the financial status and results of operations for: Select one: a. Mokhasimbe Limited b. Mokhasimbe Limited and Mphahlele Limited c. Mokhasimbe Limited, Mphahlele Limited and Nethengwe Limited d. Mokhasimbe Limited, Mphahlele Limited, Nethengwe Limited and Msoma LimitedN4 common stockholders of a business enterprise are said to be the residual owners which mean that they a. have thr rights to specific assets of the business b. are entitled to a dividend every year in which the business earns profit c. can negotiate individual comtrscts on behalf of the enterprise d. bear the ultimate risks and uncertainties and recieve the benefits if enterprise ownership.Repeat Brief Exercise 2.8, except assume that rather than being a sole proprietorship or a partner-ship, Solway Company is organized as a corporation with capital stock of $40,000. How would the $50,000 of owners’ equity be presented in the company’s balance sheet?
- Grounded Coffee, a drive-thru company, has four subsidiaries. The percentage of its business coming from each of the subsidiaries and their respective betas are as follows: Subsidiary Perecentage of business Beta Electric utility 30%. 1,20 Cable company 20% 0,80 Real estate 15% 1,30 International special project 35% 0,60 What is the holding company’s beta? 1. 0,41 2. 0,52 3. 0,72 4. 0,93After the combination, what is the total shareholders' equity of Parent Company? A. 38,000,000 B. 37,250,000 C. 37,850,000 D. 52,250,000Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary:1) Current Assets2) Land3) Building and Equipment4) Goodwill5) Investment in Sidney Corporation6) Ordinary shares7) Retained earnings8) Minority interest9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock marketat P 20/share.
- The Daddy Group has the following group structure:Daddy Ltd80% 80% 27%Son 1 Ltd Son 2 Ltd Son 3 Ltd70% 55%30 %Son 4 Ltd Son 5 Ltd10% 5% 45% 95%Son 6 Ltd Son 7 Ltd(a) Reproduce and complete the following controlling and non-controlling interest table. Show your calculations.(b) What percentage of the voting in Son 7 Ltd will be controlled by the Daddy Ltd? (c) What percentage of the dividend declared by Son 7 Ltd will be received by the Daddy Ltd? Daddy Interest1. How much is the realized gain or loss on the sale of Djursholm Corp. ordinary shares on April 1, 2022? 2. The 2,100 ordinary shares of Stockholm Corp. purchased on May 1, 2022, should be initially measured at how much? 3. Sweden’s December 31, 2022, statement of financial position should report financial assets at fair value through other comprehensive income at what amount?29. the assets and liabilities of R were stated at their fair values when A acquired it's 80% interest and the fair value method was used to initially measure the NCI. A uses the cost method to account for its investment in R. Net income and dividends for 2021 for the affiliated companies were: A Corp. R Corp. Net Income P105,000 P31,500 Dividends paid 63,000 17,500 Dividends Payable, 1/1 20,000 9,250 Dividends Payable 12/31 31,500 8,750 Retained Earnings of A Corp. in the separate FS at the beginning of the year is P420,000. End of the year evaluation indicates P3,000 impairment in goodwill. The consolidated retained earnings at December 31, 2021 is:
- Q1) When a company owns 50% or more of another company, accounting standards require that the owner (parent) consolidates its financial statements with the subsidiary. Explain the rationale and the reasons behind that requirement.Wixi Co. has the following equity investments in FSN, DELL, and ATI. (1) Which of these companies are subsidiaries of Wixi? (2) How are individual assets and liabilities of a parent and its subsidiary(ies) reported on a balance sheet? FSN stock: Wixi owns 70% of the voting common stock and has controlling influence. DELL stock: Wixi owns 5% of the voting common stock and has insignificant influence. ATI stock: Wixi owns 30% of the voting common stock and has significant influence.Calculate the percentage of ownership that Engro Corporation holds in Engro Foods (see Figure). Engro Corp's ownership in Engro Foods Lt. amounts to 8.49%, i.e. 58% of 50.5% of 29%. ________________________________________________________________________________________ Scenario-1: Assume that Engro Corp has 100% shareholding in Engro Polymer Ltd., and that it has effective control of each of the firms in the ownership pyramid, including Engro Foods. If Engro Corp steals one Rupee from Engro Foods and transfers to Engro Polymer, what will be its: i) net gain ii) loss? Hence, if Engro Corp steals one Rupee from Engro Foods, i) the net gain from doing so will amount to about 91.51 paisa (100 ps - 8.49 ps) and, ii) the costs will be 8.49 paisa. _____________________________________________________________________________________________ _____________________________________________________________________________________________ Scenario-2 (X % shareholding in Engro Polymer…
