On January 1, 2020, West Corporation purchased 80% of the common stocks of FastCompany. Separate balance sheets for the companies at acquisition date are as follows:West CorpFast Co.FMVCashP 12,000P 119,000Accounts recei vable72,00013,000Inventory66,00019,00029,000230,000120,000140,000Plant assets, net(remalning life 5 years)Investment In Fast196.000Total assetsP 615,000P 271,000Accounts payableP103,00071,000Capital stock400,000150,000Retained earnings112,00050,000Total equitiesP 615,000P 271,00020. Goodwill (income) to be recorded by West Corp.oints21. Total assets on the consolidated balance sheetnts22. Non-controlling interest in net assets as of January, 2020

As per our protocol we provide solution to the one question only and you have asked multiple…

Answered: 20. Goodwill (income) to be recorded by…

Business

Accounting

20. Goodwill (income) to be recorded by West Corp. 21. Total assets on the consolidated balance sheet

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: comprehensive income i

A: Other comprehensive income is closed to Correct answer :- D - Accumulated other comprehensive…

Q: Statement I: Under accrual accounting the computation of the entity’s net income is by deducting the…

A: Under accrual accounting, expense are recognized even if they are not actually paid and income is…

Q: It indicates the proportion of debt in relation to resources provided by the owners, a. Debt…

A: Lets understand the basics. Debt to equity ratio is a ratio which compares how much proportionate…

Q: hich of the following elements of financial statements is most closely related to company…

A: Financial statements are important reports that provide financial data about a firm at a certain…

Q: An Asset possessed by the business should be shown in which part of balance sheet? A. Liabilities B.…

A: The financial statements of the business include income statement and balance sheet. The balance…

Q: Which of the following is included in computing the total gross income? Incidental revenue Net…

A: Gross Income - It the amount of total income which includes from the other sources include operating…

Q: Th e initial measurement of goodwill is most likely aff ected by: B . the acquired company’s book…

A: Initially goodwill is measured as the difference between the purchase price paid for acquisition and…

Q: The investment turnover is the ratio of a. operating income to sales b. sales to invested…

A: Investment is the amount invested in the assets. Turnover is the amount of sales.

Q: Organize the following under Income Statement, Share Holder's Equity, and Balance Sheet. a.…

A: The financial statement is used for reporting the financial performance of the company over a…

Q: Comprehensive income a.is considered an appropriation of retained earnings. b.includes transactions…

A: Comprehensive Income: It includes realized income and unrealized income or losses that are arrived…

Q: At what amount will the following accounts appear on the consolidated financial statements? Note: Do…

A: The equity method pertains to adjustment of subsidiary financial statement results in the respective…

Q: Which of the following is not considered in the determination of Total Assets after business…

A: In business combination , following are considered for determination of total assets : 1. Fair…

Q: Define goodwill for accounting purposes

A: When one firm is acquired by another, an intangible asset known as goodwill is transferred together…

Q: Are retained earnings apart of the companys net assets

A: Net assets of the company= Total Assets of the company minus its liabilities. Retained earnings is…

Q: consolidated statements of operations same as consolidated income statements

A: Consolidated income statement is the combined result of operations of parent and subsidiary…

Q: Which item of the income statement represents the taxable income of the firm? EBIT…

A: Taxable income is the income after deducting all the expenses in the business, before applying tax…

Q: The net assets approach of computing for the net income requires this item to be added to the ending…

A: Net Assets is the difference between Outsiders' Liability and Assets of the firm. It gives the Net…

Q: The company’s profitability on each dollar invested in assets is represented by which of the…

A: The correct option is option “C”. Return on assets.

Q: The ownership claim on company’s assets A. Equity B.withdrawal C. Revenue. D. Expense

A: The Ownership claim on company's assets are called Equity. Equity Contains the Capital and retained…

Q: for the following intercompany transaction state the principle to be used in accounting for…

A: In this question we have been given the current or the future event of transaction. We have to…

Q: If a company capitalizes costs that should be expensed, how is its income statement for the…

A: A capitalized cost seems to be an element that is added to the cost structure of a fixed asset on a…

Q: entity discontinued an operation and disposed of the discontinued operation the transaction should…

A: Discontinued Operations are a part of the company operation which have been discontinued or shut…

Q: Real assets are assets used to produce goods and services always the same as financial assets always…

A: Real assets are tangible / physical assets used in production of goods or services. These assets are…

Q: 17. Where is Accumulated Other Comprehensive Loss reported on the balance sheet?

A: A financial statement that lists a company's assets, liabilities, and shareholder equity at a…

Q: Provide factor analysis: influence of the factors (Current Assets and Current Assets Turnover on…

A: Current ratio is a ratio which specifies about the ability of the company to pay-off their current…

Q: Describe the presentation of the consolidated balance sheet and income statement indicating a) The…

A: Presentation of Balance Sheet and Income Statement is very crucial aspect in industry to compare and…

Q: How Goodwill is accounted for on financial statement. What is inter-company long-term construction…

A: Goodwill is an intangible asset reported under the non-current assets in the Balance sheet. Only…

Q: wo main ways are relevant to compare an entity's capital at the beginning and end of an accounting…

A: The right answer is option b. i & iv

Q: The valuation method primarily used in the balance sheets of business entities is a. current exit…

A: Balance Sheet: It shows the financial position of the entity. All the assets and liabilities are…

Q: Describe the equation that provides the structure for thestatement of retained earnings

A: Retained earnings: It can be defined as the amount of leftover or residual net income of the…

Q: b. Calculate the business income apportioned to State X. Business Income State X

A: The organization operates a business to make a profit. Organizations earn income from business and…

Q: Define the following. a. Retained earnings? b. Goodwill? c. Investing activities?

A: a. Retained earnings: The amount of earnings undistributed as dividends to the stockholders is…

Q: The entry to record transaction costs for financial assets measured at fair value through surplus or…

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

Q: Hdoes a company account for the disposal of an asset?how does it report gains and losses on its…

A: Disposal of Assets: It refers to selling the worn-out assets that is no longer in need for the…

Q: The return on assets is calculated by Oa. dividing net income before taxes and interest expense by…

A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…

Concept explainers

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.

Question

On January 1, 2020, West Corporation purchased 80% of the common stocks of Fast
Company. Separate balance sheets for the companies at acquisition date are as follows:
West Corp
Fast Co.
FMV
Cash
P 12,000
P 119,000
Accounts recei vable
72,000
13,000
Inventory
66,000
19,000
29,000
230,000
120,000
140,000
Plant assets, net
(remalning life 5 years)
Investment In Fast
196.000
Total assets
P 615,000
P 271,000
Accounts payable
P103,000
71,000
Capital stock
400,000
150,000
Retained earnings
112,000
50,000
Total equities
P 615,000
P 271,000
20. Goodwill (income) to be recorded by West Corp.
oints
21. Total assets on the consolidated balance sheet
nts
22. Non-controlling interest in net assets as of January, 2020

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

select the item that best completes each of the decriptions below A(n)____ is a record of increases and decreases in a spefic asset, liability, equity, revenues, or expenses items. A(n)____ is a resource owned or controlled by a company A common stock and dividendes are examples of___ accounts A(n)____ is a obilgations to transfer assets to others ___ are people and organziations that are entitlied to recieve payments from a company
While calculating operating profit which will be added to net profit a. Profit on Sale of Asset b. Increase in General Reserves c. Interest received d. Refund of Tax
(TCO D) How is a noncontrolling interest in the net income of an entity reported in the income statement?
25 - Which of the following is the table showing all the revenues of an enterprise in a certain period, the costs and expenses incurred in the same period and the profit or loss gained by the enterprise as a result?A) INCOME STATEMENTB) CASH FLOW STATEMENTC) BALANCE SHEETD) COST TABLEE) ASSETS STATEMENT
8. Realized gains and losses on investments available for sale are reported a. as a current assetb. on the income statementc. on the balance sheet as part of stockholders' equityd. as a contra asset
TRUE OR FALSE Typically, intangible assets are shown on a company’s balance sheet at fair value.
Current assets DIVIDED BY current liabilities is the Current Ratio Net Worth Ratio Working Capital
Total asset turnover indicates the company's: A. Profitability.B. Ability to use its assets to generate sales.C. Liquidity.D. Debt position
Which item is not included in an S corporation's nonseparately computed income? a. Net sales. b. Cost of goods sold. c. Dividends received. d. Depreciation recapture. e. All of these are included in non-separately computed income.
9
Is there any financial or operational data that appears on both the income statement and the retained profits statement except revenue?
How is goodwill computed if fresh start accounting is applied to a reorganized company?