ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 7, Problem 7.26P
To determine
Introduction:The best way to transfer assets from one company to another, without moving all the items of
To complete:Table showing selected information.
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Putin Company acquired the assets and assumed the liabilities of Joni Company on January 1, 2018, paying OMR 4,500,000 cash. Immediately prior to the acquisition, Joni Company's balance sheet was as follows:
BOOK VALUE FAIR VALUE
Accounts receivable 240,000 220,000
Inventory 290,000 320,000
Land 960,000 1,508,000
Buildings 1,020,000 1,392,000
Total 2,510,000 3,440,000
Accounts payable 270,000 270,000
Note payable 600,000 600,000
Common stock, $5 par 420,000
Other contributed capital…
On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded assets and liabilities of XYZ Corporation on July 1, 2022, immediately before the acquisition are as follows:
Cash
P 800,000
Inventory
2,400,000
Property and equipment, net
4,800,000
Liabilities
1,800,000
On July 1, 2022 it was determined that the inventory of XYZ had a fair value of P1,900,000, and the property and equipment, net had a fair value of P5,600,000.
What is the amount of goodwill (gain on bargain purchase) that will be reported in the books of ABC?
assuming the beginning of the year (20X3) balance
in the Investment in A account is $716,000 complete the consolidated worksheet below.
To ald in this, Information from Problem 4 is repeated below.
Monroe Company purchased 80% of Adams Company on January 1, 20X1.
The purchase price paid was $600,000. On that day, the book value of Adams
was $500,000. Excess of cost over book value is due to goodwill.
Included in Adams's income are intercompany sales to Monroe of $40,000 with a cost to Adams of $25,000.
30% of this inventory is on hand in the Monroe inventory at December 31, 20X3. In addition, inventory
sold at a profit of $5,000 was in the inventory of Monroe at December 31, 20X2.
Below are the balances of accounts of Monroe and Adams at December 31, 20x3.
Consolidation Entries
Consolidated Bal.
Monroe
Adams
Dr.
Cr.
Sales
$50,000 $250,000
CGS & Expenses
$30,000 $150,000
Income from S.
Income
$100,000
NCI
Controlling Interest
Retained Earnings Jan 1, 10
$700,000 $190,000
Dividends…
Chapter 7 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - Prob. 7.3QCh. 7 - Prob. 7.4QCh. 7 - Prob. 7.5QCh. 7 - Prob. 7.6QCh. 7 - Prob. 7.7QCh. 7 - Prob. 7.8QCh. 7 - Prob. 7.9QCh. 7 - Prob. 7.10Q
Ch. 7 - Prob. 7.11QCh. 7 - Prob. 7.12QCh. 7 - Prob. 7.13QCh. 7 - Prob. 7.14QCh. 7 - Prob. 7.15QCh. 7 - Prob. 7.16QCh. 7 - Prob. 7.17QCh. 7 - Prob. 7.18AQCh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3CCh. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.1.1ECh. 7 - Prob. 7.1.2ECh. 7 - Prob. 7.1.3ECh. 7 - Prob. 7.1.4ECh. 7 - Prob. 7.1.5ECh. 7 - Prob. 7.2.1ECh. 7 - Prob. 7.2.2ECh. 7 - Prob. 7.2.3ECh. 7 - Prob. 7.2.4ECh. 7 - Prob. 7.2.5ECh. 7 - Prob. 7.2.6ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Transfer of Depreciable Asset at Year-End Pitcher...Ch. 7 - Prob. 7.9ECh. 7 - Sale of Equipment to Subsidiary in Current Period...Ch. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.23AECh. 7 - Prob. 7.24PCh. 7 - Prob. 7.25PCh. 7 - Prob. 7.26PCh. 7 - Prob. 7.27PCh. 7 - Prob. 7.28.1PCh. 7 - Prob. 7.28.2PCh. 7 - Prob. 7.28.3PCh. 7 - Prob. 7.28.4PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33PCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.41AP
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