10% share dividend on December 31, 2021. The entity elected to use the equity method in accounting for this investment. What is the carrying value of the investment in associate at December 31, 2021?
Q: On January 1. 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $180,000 in…
A: A consolidated financial statement is inclusive of all the subsidiary companies where the owner has…
Q: On January 1, 2022, Matsui Co. purchased 42% of the outstanding voting common stock of Yankee, Inc.…
A: Investments: Investment is disclosed as an asset in the balance sheet, as it helps in earnings and…
Q: On July 1, 2021, Mickaella Company, an SME, acquired 20% of the outstanding ordinary shares of…
A: It is the method used to treat investments in associate companies. This method is used when an…
Q: On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $310,000 in…
A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…
Q: On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in…
A: a.Calculate gain on sale of equipment:Gain on sale of equipment = $200,000 - $110,000Gain on sale of…
Q: On July 1, 2020, GREEN Company acquired 20% of the outstanding ordinary shares of another entity for…
A: Subsidiary Company -:A Subsidiary company subsidiary is simply a company or also referred to as a…
Q: At the beginning of the current year, FFF Company acquired 20% of the outstanding ordinary shares of…
A: Acquisition:- When one company acquires a stake in another company and gets the decision rights in…
Q: On January 2, 2021, E Company acquired 20% of the outstanding ordinary shares of T Company for…
A: Dividend A dividend is a payment made by a corporation to its shareholders that is decided by the…
Q: On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The…
A: Depreciation is the decrease in the book value of the tangible asset which gives benefit for more…
Q: At the beginning of the current year, FFF Company acquired 20% of the outstanding ordinary shares of…
A: Current Investment Current Investment should valued at lower of cost or NRV whichever is lower…
Q: Illustrate how the statement of comprehensive income is affected in 2023. (Enter answers in…
A: Given in the Question: Grouper Corporation purchased 30% of Martz Limited for $201,000…
Q: On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $240,000 in…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The…
A: Depreciation represents the reduction in the value of the long-term asset of the company over a…
Q: What amount of the investment cost is attributable to goodwill?
A: Given information is: On January 2, 2020, Kent Corp. paid 1,600,000 for the purchase of 40% of the…
Q: January 1, 2020 Para Inc. acquired all of the outstanding common stock of Sail, Co. for cash. The…
A: When there is an acquisition of one company the acquiring company is supposed to record the assets…
Q: On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The…
A: Depreciation expense is associated with the fall in the value of an asset periodically because of…
Q: Riverbed Inc acquired 108,000 common shares, which is 25% of the outstanding common shares, of…
A: Since corporation R has significant control over the business of company T despite having an…
Q: On January 2, 2019, Peace Co. acquired 80% of the outstanding common stock of Shade Co. for…
A: Working note: Computation of additional depreciation or savings in depreciation:
Q: On January 2, 2019, Peace Co. acquired 80% of the outstanding common stock of Shade Co. for…
A: A consolidated financial statement is the part of the financial statement where the accounts of the…
Q: On January 2, 2019, ABC Co. acquired 80% of the outstanding common stock of Shade Co. for ₱1,344,000…
A: Consolidated financial statements are a set of financial statements prepared for a group company…
Q: January
A: book value of machine sold = P230,000 Cost of machinery = P560,000 no. of useful life = 5 year…
Q: ompany's net assets. P13,000 of the excess is attributed to an undervalued equipment with a…
A:
Q: On January 1, 2024, Green Corporation purchased 20% of the outstanding voting common stock of Gold…
A: The objective of the question is to calculate the carrying value of Green's investment in Gold at…
Q: On July 1, 2022, Alicia Company purchased 25% of Clarkson Company's ordinary shares. No goodwill…
A: The question is related to Accounting for Investment in Associates. As per equity method of…
Q: On January 1, 2022, Paulson Corporation purchased 65% of the outstanding common stock of Sun…
A: Paulson corporation acquired 65% of outstanding common stock of sun company
Q: On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $110,000 in…
A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: NCI in the consolidated FS for the year 2019.
A: We have to calculate NCI on acquisition date & for that we have to add NCI share in the net…
Step by step
Solved in 2 steps
- On January 1, 2022, Matsui Co. purchased 42% of the outstanding voting common stock of Yankee, Inc. for $300,500. The book value of the acquired shares was $275,500. The excess of cost over book value is attributable to an intangible asset on Yankee's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2022, Yankee reported net income of $125,750 and paid cash dividends of $25,700. What is the carrying value of Matsui's investment in Yankee at December 31, 2022? Multiple Choice $342,521. $337,521. $289,706. $300,500.On July 1, 2020, GREEN Company acquired 20% of the outstanding ordinary shares of another entity for ₱5,000,000. The carrying amount of the acquired shares was ₱4,000,000. The excess of cost over the carrying amount was attributable to an identifiable intangible asset which was undervalued on the investee’s statement of financial position and which had a remaining useful life of 5 years. The investee reported net income of ₱6,000,000 for 2020 and paid cash dividends of ₱1,000,000 on ordinary shares and issued 10% stock dividend on December 31, 2020. What is the carrying amount of the investment in associate on December 31, 2020? A. ₱ 5,900,000 B. ₱ 5,400,000 C. ₱ 5,800,000 D. ₱ 5,300,000On January 2, 2021, E Company acquired 20% of the outstanding ordinary shares of T Company for P700,000.00. This investment gave E Company the ability to exercise significant influence over T Company. The book value of the acquired shares was P600,000.00. The excess of cost over book value was attributed to a depreciable asset which was undervalued on T Company's balance sheet and which had ten years useful life remaining. For the year ended December 31, 2021, T Company reported net income after tax of P180,000.00 and paid cash dividends of P60,000.00 on its ordinary. Income tax rate is 32%. How much is the carrying value of E Company's investment in T Company at December 31, 2021? P678,000.00 P690,000.00 P714,000.00 P717,200.00
- On January 1, 2024, Green Corporation purchased 20% of the outstanding voting common stock of Gold Company for $300,000. The book value of the acquired shares was $275,000. The excess of cost over book value is attributable to an intangible asset on Gold's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2024, Gold reported net income of $125,000 and paid cash dividends of $25,000. What is the carrying value of Green's investment in Gold at December 31, 2024?On January 1, 2022, P Company purchased 64,000 shares of the 80,000 outstanding shares of S Company at a price of P1,200,000, with an excess of P30,000 over the book value of S Company's net assets. P13,000 of the excess is attributed to an undervalued equipment with a remaining useful life of eight years from the date of acquisition and the rest of the amount is attributed to goodwill. For the year 2022, P Company reported a net income of P750,000 and paid dividends of P180,000, while S Company reported a net income of P240,000 and paid dividends to P Company amounting to P39,000. The retained earnings of P Company at the end of 2022 per books is P1,025,000. P Company uses the cost method to account for its investment in S Company and elected to measure non-controlling interest at fair value on date of acquisition. How much is the consolidated net income attributable to controlling interests?On January 1. 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $180,000 in cash. The equipment had originally cost $162.000 but had a book value of only $99.000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $480,000 in net income in 2021 (not including any investment income) while Brannigan reported $157.400. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $5,800 per year a. What is consolidated net income for 2021? What is the parent's share of consolidated net income for 2021 If Ackerman owns only 90 percent of Brannigan? c. yhat is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream? What is the consolidated net income for 2022 f Ackerman reports $500.000 (does not Include…
- On July 1, 2022, Alicia Company purchased 25% of Clarkson Company's ordinary shares. No goodwill resulted from the acquisition; however, the purchase difference of P1,000,000 was allocated to an undervalued equipment with a remaining useful life of five years. Alicia appropriately carries this investment using equity method and the balance of the investment account was P12,000,000 at December 31, 2022. Clarkson reported profit of P20,000,000 for the year ended December 31, 2022 and paid Alicia dividends of P1,000,000 on December 31, 2022. How much did Alicia pay for its 25% interest in Clarkson Company? A P10,400,000 B) P9,900,000 C) P10,600,000 D P9,650,000On January 1, 2023, Grouper Corporation purchased 30% of the common shares of Martz Limited for $201.000. Martz shares are not traded in an active market. The carrying amount of Martz's net assets was $540,000 on that date. Any excess of the purchase cost over Grouper's share of Martz's carrying amount is attributable to unrecorded intangibles with a 20-year life. During the year, Martz earned net income and comprehensive income of $78,000 and paid dividends of $15,600. The investment in Martz had a fair value of $206,000 at December 31, 2023. During 2024, Martz incurred a net loss and comprehensive loss of $83,000 and paid no dividends. At December 31, 2024, the fair value of the investment was $145,000 and the recoverable amount was $154,000. Assume that Grouper follows IFRS. Illustrate how the statement of comprehensive income is affected in 2023. (Enter answers in alphabetical order) Net income will include the of $ A and the of $Riverbed Inc acquired 108,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2023 for $637,200. At the time of purchase, Tahiti Ltd's depreciable assets were undervalued by $35,840. The depreciable assets had a remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.35 per share on July 31, 2023. Tahiti Ltd. reported $1.3 million as net income on December 31, 2023 for the year ending on this date. Assume that Riverbed Inc. is in a position to exercise significant influence over Tahiti Ltd, and that Riverbed follows IFRS. Prepare all the journal entries for 2023 in the books of Riverbed Inc. relating to above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit…
- On January 2, 2019, ABC Co. acquired 80% of the outstanding common stock of Shade Co. for ₱1,344,000 with no goodwill resulting from the acquisition. The following selected account balances were taken from the accounting records of XYZ Co. Details shown doe XYZ Co. in the image. The building has an estimated useful life of 10 years and the equipment is expected to last for 5 years. For the year 2019, ABC Co. reported net income from own operations of ₱2,240,000 and XYZ Co. reported ₱600,000 net income from own operations. ABC Co. accounts its investment in XYZ Co. using the cost method. What is the consolidated income statement for the year 2019. NCI in the consolidated FS for the year 2019.On January 1, 2021, ABC Company sold machinery to MNO, its wholly-owned subsidiary for P450,000. The Equipment had cost ABC P560,000. The book value at the time of sale was P230,000. ABC used a 5-year life, with a salvage value o P10,000, and uses sum of the year's digits depreciation. MNO will adopt this practice. On the consolidated statement of financial position at December 31, 2021, the deprecation expense should be stated at:On January 2, 2019, Peace Co. acquired 80% of the outstanding common stock of Shade Co. for ₱1,344,000 with no goodwill resulting from the acquisition. The following selected account balances were taken from the accounting records of Shade Co. BV FV Building 12,000,000 12,400,000 Machinery 620,000 500,000 The building has an estimated useful life of 10 years and the equipment is expected to last for 5 years. For the year 2019, Peace Co. reported net income from own operations of ₱2,240,000 and Shade Co. reported ₱600,000 net income from own operations. Peace Co. accounts its investment in Shade Co. using the cost method. NCI in the consolidated FS for the year 2019.