19. On January 5, 2020, Purpose Corporation purchased 70% of Showtime Company's P10 par ordinary shares for P900,000. On this date, the carrying amount of Showtime's net assets was P1,000,000. The fair value of identifiable net assets and liabilities of Showtime were the same as the carrying amount except for equipment, which is P200,000 in excess of carrying amount. For the year ended December 31, 2020, Showtime had a net income of P150,000 and paid cash dividend of P63,000 to Purpose. Excess attributable to equipment is amortized over 10 years.

19. On January 5, 2020, Purpose Corporation purchased 70% of Showtime Company's P10 par ordinary shares for P900,000. On this date, the carrying amount of Showtime's net assets was P1,000,000. The fair value of identifiable net assets and liabilities of Showtime were the same as the carrying amount except for equipment, which is P200,000 in excess of carrying amount. For the year ended December 31, 2020, Showtime had a net income of P150,000 and paid cash dividend of P63,000 to Purpose. Excess attributable to equipment is amortized over 10 years.

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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Kk.25.
On January 1, 2020, Peasy Corporation acquired 60 percent of Squeezy Corporation's voting common stock. On that date, Peasy reported buildings and equipment on its general ledger at a book value of $66000. 01/01/20, the fair value of the Peasy's buildings & equipment was $59000. On 01/01/20, Squeezy reported buildings and equipment on its general ledger at a book value of $63000. On that same date, the fair value of the Squeezy's buildings & equipment was $90000. What will be the amount at which buildings and equipment will be reported in consolidated balance sheet immediately following the acquisition? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE,
how much is the non-controlling interest on december 31, 20x2 if entity A acquired 90% interest in entity B on January 1, 20x1 when Entity B's net assets had a fair value of 100. on december 31, 20x2 entity B's net assets increased to 200 after adjustments for acquisition date for fair values, net of depreciation
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At December 31, 2023, Sandhill Corp's general ledger includes the following account balances: Copyrights $52500 Deposits with advertising agency (will be used to promote goodwill) 43000 Discount on bonds payable 74000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 589500 Trademarks 106000 In the preparation of Sandhill's balance sheet as of December 31, 2023, what should be reported as total intangible assets? O $158500 O $748000 $791000 O $822000
The following investment portfolio of equity securities (all acquired during 2021) accounted for as fair value through other comprehensive income are held by GHI Company on December 31, 2021: Investment Acquisition Cost P3,300,000 HJK, Inc. shares (1,100 shares) Fair value, 12/31/21 P3,100/share 9/share 225/share LMN Co. shares (35,000 shares) OPQ Corp. shares (12,000 shares) 350,000 2,400,000 The following transactions occurred during 2022: • A 20% stock dividend was declared and issued on the HJK, Inc. shares, after which the company sold 330 shares at its fair value of P2,700/share. Additional 5,000 shares of LMN Co. were purchased by the company during the year at fair value of P9.50/share, excluding P0.50/share transaction costs. LMN Co. then declared and paid a P2/share cash dividend. ● A 2-for-3 split was declared by OPQ Corp. to reduce its number of shares. OPQ Corp. declared and paid a P3/share cash dividend after the split. The fair value of the equity securities at year-end…
5. The statement of financial position of Super LLC and Star LLC at 31st Dec 2019 are as follows, Additional Information,1. Super LLC acquired 80% of shares on 31st Dec 2016 for OMR 20,0002. On 31st Dec 2016, the retained earnings of Star LLC was OMR 3,000.3. On 31st Dec 2016, fair value of Star company's non-current assets was OMR 2,000 more than theirbook value.4. This revaluation has not been reflected in the books of Star LLC.5. Star LLC has issued no shares since being acquired by Super LLC.6. Goodwill arising on consolidation has suffered an impairment loss of 30% since acquisition.7. (Prepare a consolidated/ Group statement of financial position as at 31 March 2019.)
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Assuming that the quasi reorganization shall be accomplished as follows: Property, plant and equipment are to be reduced to their fair market value of P800,000. Inventories are to be written down by P50,000. • Unaccrued obligation shall be recognized at P150,000. • The par value of ordinary Shares will be reduced to P5. 1. What is the balance of the retained earnings account as of 31 December 2019? Assuming that the quasi reorganization shall be accomplished as follows: Property, plant and equipment are to be reduced to their fair market value of P800,000. Inventories are to be written down by P50,000. • Unaccrued obligation shall be recognized at P150,000. • The par value of ordinary Shares will be reduced to P5. 2. What is the balance of the retained earnings account as of 31 December 2019?
Grey co. A. 280,955B. 360,955C. 340,955D. (220,045)
1. At what amount will the gain on sale of building appear on the consolidated/group income statement of Power and Speed for the year 2019 should be: 2. The consolidated depreciation expense for 2019 should be
FE holds investments in a number of subsidiaries and associate entities and made one change to its holdings in 2021, which was the acquisition of LT. The statement of financial position of the FE group as at 31 December 2021 and its comparative are shown below:Statement of financial position as at 31 December 2021 2020ASSETS R000 R000Non-current assetsProperty, plant and equipment 24 000 20 200Goodwill 6 300 5 800Investment in associates 5 200 4 70035 500 30 700Current assets 42 500 31 700Total assets 78 000 62 400EQUITY AND LIABILITIESEquity attributable to owners of the parentShare capital (R1 ordinary shares) 18 000 15 000Share premium 1 000 -Revaluation reserve 2 000 -Retained earnings 12 500 7 60033 500 22 600Non-controlling interests 9 200 8 800Total equity 42 700 31 4006Non-current liabilitiesLong-term borrowings 16 000 18 000Current liabilities 19 300 13 000Total liabilities 35 300 31 000Total equity and liabilities 78 000 62 400Additional information:1. FE acquired 70% of the…