1) The working paper eliminating entry recorded by Acquired Company on January 1, 20x7, the date of acquisition of its subsidiary is presented below. Of the goodwill recorded, 30,000 belong to the non-controlling interest. Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.

Q: 7. Suppose that a parent company acquires a subsidiary and the following is an elimination entry…

A: As per the Honor code of Bartleby we are bound to give the answer of first questions only as you…

Q: Assume on July 1, 2022, a parent company paid $1,656,000 to purchase an 80% interest in a…

A: The Goodwill is the amount of purchase consideration paid in excess of fair value of net…

Q: Assume that both the Parent and Subsidiary adopt 31 December as their financial year-end. Further…

A: SUBSIDIARY BOOKS-       DATE         PARTICULARS        DEBIT $   CREDIT $ 20-DEC-1.   Cash…

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A: Goodwill is an intangible asset which may be purchased or self-generated. It also arises when the…

Q: 2. On December 31, 2020, Parent company (A) acquired 80% of Subsidiary (B) outstanding common stocks…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Illustration 2. Non-Controlling Interest On January 1, 2021, Inahan Co. acquired 75% of the voting…

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A: Non-controlling interest is also termed as minority interest which shall refer to those…

Q: . Goodwill arising from the consolidation if it is to be computed using the proportionate basis or…

A: Partial Goodwill-: In the Partial Goodwill procedure, the goodwill of the firm is evaluated as the…

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A: NET CAPITAL SPENDINGNet Capital Spending is the Amount which is Incurred by the Organisation for…

Q: Prepare the worksheet for consolidation purposes and the related eliminating entries on January 1,…

A: The acquisition is a process in which a company acquires the controlling stakes of another company…

Q: Part A) Assume that a parent company acquired 80% of the outstanding voting common stock of a…

A: Consolidation is a financial reporting process used when a parent company owns a controlling…

Q: The amount of goodwill (gain from a bargain purchase) resulting from the business combination is 2.…

A: Step 1: Calculation of Identifiable Net Assets of Subsidiary Company Particulars Amount  Amount…

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A: A consolidated financial statement is a group's financial statement that is presented as a single…

Q: am. 102.

A: We can explain further as follows;Key Concepts1. Equity Method: The equity method is used by a…

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A: Goodwill arises on acquiring control in other entities if the payment of consideration exceeds the…

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A: Pre and Post acquisition profit Pre Acquisition Profit - It is the profit which pertains to the…

Q: , C, and D are companies to be combined. Just prior to the combination, their individual…

A: Concept of companies account

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A: As per our protocol, we provide the solution to the one question only but as you have asked two…

Q: Determine the amount of Goodwill to be recognized in the consolidated balance sheet at the date of…

A: Goodwill refers to the positive difference between the purchase consideration paid by the parent…

Q: PC Illustration 1: Determination of goodwill NCZ A Limited acquires 80% of B Limited by paying cash…

A: Goodwill can be determined by: 1)Fair value method 2)Proportionate share method Non-controlling…

Q: 1.How much is the goodwill to be reported on the consolidated balance sheet on January 1, 2x19?…

A: Goodwill = Purchase Consideration + Non controlling Interest - Net Identifiable Assets…

Q: On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete…

A: Goodwill is the intangible asset that is reported on the balance sheet of the company. It shows the…

Q: a. Given the following acquisition-date balance sheets of the parent and subsidiary, at what amounts…

A: a). Amounts will be reported on the consolidated balance sheet 1 Accounts Receivable…

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A: Consolidated net income is the income of the parent company which does not include any income from…

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Q: On 1 February 2015, Big Brother Ltd issued a prospectus and inviting applicants to subscribe for 10…

A: Accounting for share issuance and calls refers to the process of recording and reporting the…

Q: etermine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase…

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Determine the percentage of outstanding voting shares of the subsidiary acquired by the parent.

A: Calculating total fair value from the purchase cost and Non Controlling Interest fair value.…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.