ADVANCED FINANCIAL ACCOUNTING IA
ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 3, Problem 3.22P
To determine

Introduction:Consolidated financial statements are financial statement maintained by entity with multiple subsidiary and division.The minority interest is that portion of stock which the parent company does not hold in the subsidiary company and does not hold any controlling interest

To Prepare:The Consolidated balance sheet for company P.

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AC Energy Corp. would like to acquire an additional subsidiary involved in renewable energy. Information about the top four potential acquirees were gathered. You would like to decide which entity to acquire based Uno Dos Tres Quatro Market Value of Equity Net Operating Income - 2021 10,000,000 P 10,200,000 P 9,750,000 P 10,500,000 1st Quarter 510,000.0 P 505,000.0 P 480,000.0 P 550,000.0 2nd Quarter 530,000.0 525,000.0 P 450,000.0 P 530,000.0 Annual Operating Income 2,000,000.0 P 2,040,000.0 P 1,890,000.0 P 2,270,000.0 Net Operating Income - 2022 1st Quarter 500,000 520,000 490,000 550,000 2nd Quarter 490,000 510,000 500,000 570,000 istribut 370,000 Net Income - 2021 1st Quarter 335,000 345,000 445,000 CELE 2nd Quarter 390,000 355,000 315,000 425,000 Annual Net Income 1,440,000 1,360,000 1,350,000 1,850,000 Net Income - 2022 1st Quarter 360,000 350,000 355,000o 445,000 2nd Quarter 350,000 340,000 365,000 465,000 Provide the under/(over) valuation of the entity to be acquired.
Cloud Co. acquired an investment in Sky Co., a joint venture, for P100,000, incurring transaction costs of P1,000. Cloud Co. determined that it has joint control over Sky. Cloud Co. uses the PFRS for SMES and elects the cost model for its investments in joint ventures. The investment's fair values were P102,000, P110,000 and P90,000 on December 31, 20x1, 20x2 and 20x3, respectively. Costs to sell were estimated at P4,000 throughout. Cloud Co. recognizes in its profit or loss which of the following amounts? gain (loss) 20x1 20x2 20x3 a. 0 b. (1,000) с. (3,000) d. (3,000) 8,000 8,000 3,000 (20,000) (20,000) (15,000)
If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P10 par valueshares with a fair value of P20 per share, entered into a mortgage loan of P290,000 and paying directcost and stock issue cost of P50,000 and P20,000 respectively, a P25,000 direct cost and a P50,000indirect cost however remain unpaid.REQUIREMENTS:A. GoodwillB. Consolidated Total Liabilities at the date of acquisition

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ADVANCED FINANCIAL ACCOUNTING IA

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