Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company. Goodwill is an intangible asset of a company which is generated from the acquisition of a company or enterprise. It is valued as per the purchase price of company. To choose: The correct answer.

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Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.Goodwill is an intangible asset of a company which is generated from the acquisition of a company or enterprise. It is valued as per the purchase price of company.

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2) On January 1, 20X5, Peery Company acquired 100 percent of Standard Company's common shares at underlying book value. Peery uses the equity method in accounting for its ownership of Standard. On December 31, 20X5, the trial balances of the two companies are as follows: Item Current Assets Depreciable Assets Investment in Standard Company Other Expenses Depreciation Expense Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Standard Company Peery Company Debit $ 238,000 300,000 100,000 90,000 30,000 32,000 Credit $ 120,000 50,000 120,000 100,000 175,000 200,000 25,000 Standard Company Debit Credit $ 95,000 170,000 70,000 17,000 10,000 $ 790,000 $ 790,000 $362,000 $ 85,000 30,000 50,000 50,000 35,000 112,000 $362,000 Required: 1. Prepare the consolidation entries needed as of December 31, 20X5, to complete a consolidation worksheet. 2. Prepare a three-part consolidation worksheet as of December 31, 20X5.

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completio Peel Corporation purchased 60 percent of Split Products Company's shares on December 31, 20X7, for $216,000. At that date, the fair value of the noncontrolling interest was $144,000. On January 1, 20X9, Peel purchased an additional 20 percent of Split's common stock for $100,000. Summarized balance sheets for Split on the dates Indicated are as follows: 20X7 Assets Cash Accounts Receivable Inventory Buildings & Equipment (net) $ 44,000 57,000 78,000 350,000 Total Assets Accounts Payable Bonds Payable $ 529,000 Liabilities & Equities Common Stock Retained Earnings Total Liabilities & Equities December 31 20X8 20X9 $ 64,000 105,000 155,000 205,000 $ 74,000 97,000 108,000 330,000 $ 609,000 $ 114,000 105,000 155,000 235,000 $ 94,000 127,000 168,000 310,000 $ 699,000 $ 154,000 105,000 155,000 285,000 $ 529,000 S 609 000 $ 699,000 Split paid dividends of $21,000…

1. On January 1, 20X1, P Company (PC) purchased 80% of the outstanding shares of S Company (SC) at the cost of P700,000. On that date, SC had P300,000 and P500,000 capital stock and retained earnings, The non-controlling interest (NCI) is measured on a fair-value basis. For 20X1, PC had a comprehensive income (CI) of P300,000 and paid dividends of P100,000. On the other hand, SC reported a CI of P150,000 and paid dividends of P50,000. All of the assets and liabilities of S Company had book values that approximately equal to their respective market values. On December 31, 20X1, PC sold a piece of equipment with a book value of P30,000 to SC for P25,000. The gain on the sale is included in the CI of PC indicated above. The equipment has a 10-year useful life. It has been used for the past five (5) years before the date of acquisition. Required: Prepare the journal entries that both companies should make for the year Allocate the consolidated comprehensive income at the end of the…