ADVANCED ACCOUNTING(LL) W/CONNECT
13th Edition
ISBN: 9781260282382
Author: Hoyle
Publisher: MCG
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Chapter 6, Problem 32P
To determine
Compute the amount attributed to
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Part AClark Company acquired 15% of the 500,000 shares of common stock of Davis Company at a total cost of$25.75 per share on June 1, 2022. On October 1, Davis Company declared and paid a $50,000 cash dividend.On December 31, Davis Company stock had a market price of $27.00 per share and the company reported netincome of $1,250,000 for the year. The securities are classified as available-for-sale.Prepare all journal entries for 2022.
Part BOn January 1, 2023, Evans Company purchased 40% of Farley Corporation’s 800,000 outstanding shares ofcommon stock at a cost of $35 per share. On July 15, Farley declared and paid a cash dividend of $1.50 pershare. On December 31, Farley reported a net income of $2,860,000 for the year and the market price of itscommon stock was $42 per share. Prepare all journal entries for 2023.
I only need part B.
On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Considerationincludes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equityof S Company is as follows: P. Company S CompanyOrdinary Share Capital 3,300,000 1,450,000Accumulated Profits 5,450,000 2,800,000Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assetsof S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years),P600,000. All other assets and liabilities are fairly valued.S Company sold an equipment to P Company for P200,000 carried in S’s book at P120,000 on July 1, 2022;remaining life is 4 years. Towards the end of the year, P sold to S merchandise costing P150,000 at 40%gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventoryfrom S…
The ABC Company will issue shares of P 20 par value common stock for all the assets and liabilities of XYZ Company. ABC Company’s common stock has a current price of P 40 per share. The fair market value of the current assets of XYZ is P 800,000, while that of the PPE is P 3,200,000. The liabilities are 600,000. To have a gain from acquisition of P200,000 the amount of shares to be issued by ABC Company should be :
75,000
74,000
85,000
80,000
Chapter 6 Solutions
ADVANCED ACCOUNTING(LL) W/CONNECT
Ch. 6 - Prob. 1QCh. 6 - Prob. 2QCh. 6 - When is a firm required to consolidate the...Ch. 6 - Prob. 4QCh. 6 - Prob. 5QCh. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - Prob. 9QCh. 6 - Prob. 10Q
Ch. 6 - Prob. 11QCh. 6 - How do noncontrolling interest balances affect the...Ch. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Problems 7 and 8 are based on the following...Ch. 6 - Prob. 8PCh. 6 - Bens man Corporation is computing EPS. One of its...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - On January 1, Coldwater Company has a net book...Ch. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - On January 1, 2018, Stamford issues 10,000...Ch. 6 - On January 1, 2018, Stamford reacquires 8,000 of...Ch. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - On December 31, 2017. PanTech Company invests...Ch. 6 - Prob. 26PCh. 6 - Prob. 27PCh. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - Alford Company and its 80 percentowned subsidiary,...Ch. 6 - Prob. 37PCh. 6 - Prob. 38PCh. 6 - Prob. 39PCh. 6 - Prob. 40PCh. 6 - Prob. 41PCh. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Fred, Inc., and Herman Corporation formed a...Ch. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 1DYSCh. 6 - Prob. 2DYSCh. 6 - The FASB ASC Subtopic Variable Interest Entities...
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