On July 1, 2021, ABC Co. acquired most of the outstanding shares of XYZ Co. for cash. The incompleteWorking paper elimination entries on that date for the consolidated financial position are as follows:E1:Shareholder's Equity - XYZ Dr. 2,437,500Investment in XYZ - Cr. 1,584,375Non-controlling Interest - Cr. 853,125E2:Inventories - Dr. 62,500Equipment - Dr. 312,500Patent - Dr. 61,250Goodwill - Dr. ?????Investment in XYZ - Cr. 468,750Non-controlling Interest - Cr. ?????Included in the purchase price is a control premium of 68,750.Assuming NCI is measured at Fair Value in the amount of P1,500,000, what is the goodwill to bereported in the consolidated financial position at the date of acquisition?

Goodwill is an intangible asset which helps a firm earn more than what it’s competitor’s are…

Answered: 1, 2021, ABC Co. acquired most of the…

1, 2021, ABC Co. acquired most of the outstar a paper elimination entries on that date for the plder's Equity - XYZ Dr. 2,437,500 ent in XYZ - Cr. 1,584,375 ntrolling Interest - Cr. 853,125

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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E4
Loreal-American Corporation purchased several marketable securities during 2021. At December 31, 2021, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2020, and all are considered securities available-for-sale. Cost Fair Value Unrealized HoldingGain (Loss) Short term: Blair, Inc. $ 480,000 $ 405,000 $ (75,000 ) ANC Corporation 450,000 480,000 30,000 Totals $ 930,000 $ 885,000 $ (45,000 ) Long term: Drake Corporation $ 480,000 $ 560,000 $ 80,000 Aaron Industries 720,000 660,000 (60,000 ) Totals $ 1,200,000 $ 1,220,000 $ 20,000 Required:1. Prepare appropriate adjusting entry at December 31, 2021.2. What amount would be reported in the income statement at December 31, 2021, as a result of the adjusting entry?
company's accounting year ends December 31. Date of Acquisition Cost 9/20/23 $38,000 10/2/23 14,000 Investment Colt Company stock Dana Company stock What amount is reported for gain or loss on these securities in 2023 income? Select one: O a. $800 loss O Fair Value 12/31/23 Date Sold Selling Price $37,000 2/10/24 $42,000 14,200 1/17/24 13,000 b. $1,000 loss c. No gain or loss d. $3,000 gain ہے
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TOPICS: INVESTMENTS/DERIVATIVES C Company provided the following data for 2019: On September 1, C received a P500 000 cash dividend from E Company inwhich C owns a 30% interest. On October 1, C received a P 60 000 liquidatingdividend from D Company. C owns a 5%interest in D. C owns a 12% interest in CAINTOY Company,which declared a P 2 000 000 cash dividend onNovember 15, 2019 payable on January 15,2020. What amount should be reported as dividendincome for 2019?
Carla Vista Company acquires 78 Dodd's 11%, 5 year. $1000 bonds on January 1, 2021 for $78000. The journal entry to record this investment includes a debit to O Stock Investments for $78000. O Debt Investments for $78000. O Cash for $78000. O Debt Investments for $86580.
Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Cost Fair Value Unrealized Holding Gain (Loss) Short term: Blair, Incorporated $ 502,000 $ 394,000 $ (108,000) ANC Corporation 461,000 502,000 41,000 Totals $ 963,000 $ 896,000 $ (67,000) Long term: Drake Corporation $ 502,000 $ 571,000 $ 69,000 Aaron Industries 709,000 671,000 (38,000) Totals $ 1,211,000 $ 1,242,000 $ 31,000 Required: Prepare appropriate adjusting entry at December 31, 2024. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry?
Tanner-UNF Corporation acquired as a long-term investment $200 million of 6% bonds, dated July 1, 2024. Assume Tanner-UNF management is holding the bonds in a trading portfolio. Tanner-UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2024, was $210 million. Required: 1. to 3. Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2024, interest on December 31, 2024, at the effective (market) rate and the fair value adjustment at December 31. 4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motiving Tanner-UNF to sell the investment on January 2, 2025, for $190 million. Prepare the journal entry to record the sale. Comple this question by entering your wers in the tabs below. Req 1 to 3 Suppose Moody's bond rating agency downgraded the risk rating of the bonds motiving Tanner-UNF to…
Loreal-American Corporation purchased several marketable securities during 2024. At December 31, 2024, the company had the investments in bonds listed below. None was held at the last reporting date, December 31, 2023, and all are considered securities available-for-sale. Short term: Blair, Incorporated ANC Corporation Totals Long term: Drake Corporation Aaron Industries Totals Required 1 Required 2 Cost $ 516,000 468,000 $984,000 View transaction list Fair Value 1 " $ 387,000 516,000 $ 903,000 $ 516,000 702,000 $ 578,000 678,000 $ 1,218,000 $ 1,256,000 Journal entry worksheet Required: 1. Prepare appropriate adjusting entry at December 31, 2024. 2. What amount would be reported in the income statement at December 31, 2024, as a result of the adjusting entry? Complete this question by entering your answers in the tabs below. Unrealized Holding Gain (Loss) $ (129,000) 48,000 $ (81,000) Prepare appropriate adjusting entry at December 31, 2024. Note: If no entry is required for a…
38. On October 1, Dennis Company purchased P200,000 face value, 12% bonds at 98 plus accrued interest and brokerage fees and classified them as amortized cost assets. Interest is paid semiannually on January 1 and July 1. Brokerage fees for this transaction were $700. At what amount should this acquisition of bonds be recorded? a. 196,000 b. 196,700 c. 202,000 d. 202,700
Ee.105.
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