Bagz-bags Corp. issued on March 31, 2032, 400,000 shares of its P12 par value ordinary shares,P40 market value per share, to acquire all of the outstanding P25 par value ordinary shares ofShu-shoes Corporation and 110,000 shares of the same P12 par ordinary shares for alloutstanding P50 par value ordinary shares of Accessory Corp. on this date, the fair value of Shu-shoes's assets and liabilities equaled their book values, except for the longterm investment inmarketable equity securities for which the aggregate market value exceeded cost by P500,000.The fair value of Accessory's assets and liabilities equaled their book values except for property.plant and equipment which is P700,000 less than the carrying value and inventories which isP100,000 more than carrying value.On March 31, 2032, immediately before the combination, the shareholders' equities were:Shu-shoes Corp.Accessory Corp.Ordinary Shares. P5,500,000.P2,500,000Share Premium. 4,200,000470,000Retained Earnings. 7,360,000.2,430,000Total.P17,060,000.P5,400,0001) The goodwill as a result of the combination is2) The gain on acquisition to be recorded in the books of Bagz-bags Corp. (result of thecombination) is.3.) The total Shareholders' Equity of the subsidiary companies ( from their separatefinancial statements) at the date of acquisition is .

A business combination occurs when two or more separate entities merge to form a single entity or…

1) The goodwill as a result of the combination is 2) The gain on acquisition to be recorded in the books of Bagz-bags Corp. (result of the combination) is 3.) The total Shareholders' Equity of the subsidiary companies (from their separate financial statements) at the date of acquisition is_

1) The goodwill as a result of the combination is 2) The gain on acquisition to be recorded in the books of Bagz-bags Corp. (result of the combination) is 3.) The total Shareholders' Equity of the subsidiary companies (from their separate financial statements) at the date of acquisition is_

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

S1: In a business combination resulting a parent company-wholly ownedsubsidiary relationship, goodwill developed in the working paper elimination isattributed in its entirety to the parent. S2: On the date of business combinationof a parent company and its partially owned subsidiary, under the computationmethod used in full goodwill method, the amount assigned to minority interest innest assets of subsidiary is based on the cost of the parent company’sinvestment in the subsidiary’s common stock. A. Both statements are correctB. Only S1 is correctC. Only S2 is correctD. Both statements are incorrect
1. Goodwill arising from business combination on January 1, 2018 isA. 15,840 B. 25,000 C. 84,000 D. 110,200 2. How much of the goodwill is attributable to the parent and non-controlling interest, respectively?A. 15,840; 9,160 B. 15,840; 0 C. 84,000; 26,200 D. 191,840; 47,960 3. How much is the (1) operating income and (2) net income of the parent for the year ended 2018?A. (1) 196,800; (2) 196,800B. (1) 168,000; (2) 168,000C. (1) 196,800; (2) 168,000D. (1) 168,000; (2) 196,800 4. How much is the consolidated net income for the year 2018?A. 203,232 B. 211,000 C. 239,800 D. 256,800 5. How much of the 2018 consolidated net income is attributable to the parent and non-controlling interest, respectively?A. 202,400; 8,600 B. 168,800; 42,200 C. 203,232; 7,768 D. 191,840; 47,960PLEASE SHOW SOLUTIONS
After the business combination on the basis of full-goodwill approach, what amount of investment in Silk will be reported? (Just use what is given from the information) a. P 0 b. P140,000 c. P150,500 d. P215,000
Kent Ltd owns all the share capital of Lodh Lta. That is, Lodh Ltd is a wholly own subsidiary of Kent Ltd. Requirea: In relation to the following intro-group transactions, prepare the consolidation worksheet aajusting entries for the preparation of consolidatea financial stoatements as of 30 June 2020. AJll parts are independent unlesS specified. Assume an income tax rate of 30% and that all income on sale of assets is taxable and expenses are deductible. a. On 1 January 2020, Kent Ltd sold inventory costing $10,000 to Lodh Ltd at a transfer (sole) price $16,.000. Loah Ltd sold half of this inventory to an external party for $10,000 (i.e., naif of the inventory is remoined with Lodh Ltd at the end of the year). b. During March 2018, Lodn Lta paid a $5,500 interim oaividend. C. Kent Ltd rented a spare warehouse to Lodh Lta. The total charge for the rental was $6,000. Loah Ltd paid the whole amount to Kent Ltd during the year. a. On 1 July 2019, Kent Ltd sold an item of plant costing $15…
29
On January 1, 2010 Hand acquires 100% of Finger in a statutory merger. At acquisition date the following were the book values and fair values of fixed assets of these two companies: Book Value. Fair Value Hand 900,000 800,000 Finger 200,000 300,000 a. What is consolidated fixed assets under the acquisition method b. What is consolidated fixed assets under the purchase method c.What is consolidated fixed assets under the pooling of interests method thank you
1. What is the consolidated assets as of date of acquisition? 2. What is the consolidated equity as of date of acquisition?
A partially owned subsidiary sold a non-depreciable assets to its parent at a loss. In the year subsequent to the year of intercompany sale of non-depreciable assets, the working paper consolidation entry under cost method will debit: I. Non-depreciable assets Ill. NCI I. Investment in subsidiary IV. Retained Earnings a. I, III and IV b. I c. III and IV d. I, II, and IV
What is the Goodwill (Gain on Bargain Purchase) ?
X and Y corporations enter in legal consolidation process. The net assets of x at the FMV 120000 and the net assets of Y at the FMV 80000. Y will be considered as ... a. Combinee b. Lessor c. Lessee d. Combinor
Determine the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 20x1 if the non-controlling interest is assumed to be measured at fair value. On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of ABC Inc and its subsidiary are shown below:
a. Determine the goodwill or gain on bargain purchase from the above acquisition if the NCI is to be valued on a proportionate b. Determine the balance of the NCI in FC’s consolidated financial statements.