1- The following information relates to Panorama Corporation and its 70 percent-owned subsidiary, Scan, for the year 2022 is as follows (in thousands): Sales Income from Scan Cost of sales Depreciation expense Other expenses Panorama Scan $2.000 $800 98 (1,200) (400) (100) (80) (398) (180) I Required: a. Prepare a consolidated income statement for Panorama Corporation and Subsidiary for 2022. (Working paper not required) Assuming that Panorama acquired its 70 percent interest in Scan at book value on January 1, 2021, when the fair value of Scan'assets and liabilities were equal to recorded book values. There were no intercompany transactions during 2021 and 2022.

1- The following information relates to Panorama Corporation and its 70 percent-owned subsidiary, Scan, for the year 2022 is as follows (in thousands): Sales Income from Scan Cost of sales Depreciation expense Other expenses Panorama Scan $2.000 $800 98 (1,200) (400) (100) (80) (398) (180) I Required: a. Prepare a consolidated income statement for Panorama Corporation and Subsidiary for 2022. (Working paper not required) Assuming that Panorama acquired its 70 percent interest in Scan at book value on January 1, 2021, when the fair value of Scan'assets and liabilities were equal to recorded book values. There were no intercompany transactions during 2021 and 2022.

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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Question

1- The following information relates to Panorama Corporation and its 70 percent-owned
subsidiary, Scan, for the year 2022 is as follows (in thousands):
Sales
Income from Scan
Cost of sales
Depreciation expense
Other expenses
Panorama Scan
$2,000
$800
98
(1,200) (400)
(100) (80)
(398)
(180)
I
Required:
a. Prepare a consolidated income statement for Panorama Corporation and Subsidiary for 2022.
(Working paper not required) Assuming that Panorama acquired its 70 percent interest in Scan
at book value on January 1, 2021, when the fair value of Scan'assets and liabilities were equal
to recorded book values. There were no intercompany transactions during 2021 and 2022.

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A-6
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Please Solve with Explanation and Do not give image format
Illustration 2. Business Combination Achieved in Stages and without transfer of consideration On January 1, 2022, Tatay, Co. and Walanay, Inc. combined. As of this date, the book values of the assets, liabilities and equity of Tatay and Walanay before the business combination are as follows: Case 1: last year, on July 1, 2021, Tatay, Co. acquired 45% ownership interest in Walanay, Inc. for P 450,000.00. Tatay classified the investment as ‘Held for Trading Securities’ (FVPL). Now, January 1, 2022, Tatay, Co. paid P250,000.00 cash from the bank in exchange for an additional 10% ownership interest in Walanay, Inc. The following relevant Information follows: a.The previously held interest of Tatay are currently quoted at 20% higher than its book value. b.The assets and liabilities of Walanay are all equivalent to their market values. c.Tatay elected to measure NCI at ‘proportionate share’. With the stated facts, answer the following: 1. How much is the unrealized gain in Profit and…