25 - On 11/2019, R Co acquired 80% of F Co common stock for $172,000 in cash. At the acquisition date, the book values and fair value of assets and liabilities were equal, and the fair value of thenoncontrolling interest was equal to 20% of the total book value of F CO. The stockholders' equity accounts of the two companies at the acquisition date are R F common stock(5@par500,000 100,000 additional paid in capital 300, 000 40,000 retained earning 350,000 75,000 Noncontrolling interest was assigned income of $5,500 in R consolidated income statement for 2019,Based on the preceding information. what amount will be assigned to the noncontrolling interest net assets on 1/1/2019, in the consolidated balance sheet? Select one: a. 25,000 b. 43,000 c. 22,000 d. 34, 400

Noncontrolling interest, also known as minority interest, refers to the portion of equity in a…

Answered: 25-On 11/2019, R Co acquired 80% of F…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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25 - On 11/ 2019, R Co acquired 80% of F Co common stock for $172,000 in cash. At the acquisition date, the book values and fair value of assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 20% of the total book value of F CO. The stockholders' equity accounts of the two companies at the acquisition date are RF common stock(5@par 500,000 100,000 additional paid in capital 300, 000 40,000 retained earning 350,000 75,000 Noncontrolling interest was assigned income of $5,500 in R consolidated income statement for 2019, Based on the preceding information. what amount will be assigned to the noncontrolling interest net assets on 1/1/2019, in the consolidated balance sheet? Select one: a. 25,000 b. 43,000 c. 22,000 d. 34,400
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On 1/1/2019, P Co acquired 75% of S Co's outstanding common stock for cash. The fair value of the noncontrolling interest was equal to a proportionate Share of the book value of S Co net assets, at the acquisition date the balance sheet data are as follows:- S total assets 108,000 liabilities 36,000 common stock 30,000 retained earning 42,000 Select one: O P a. 45,000 b. 18,000 c. 9,000 d. 27,000 504,000 144,000 Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in the 1/1/2019 consolidated balance sheet? 120,000 240,000
19 On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000…
18 On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 - Total Assets 610,000 230,000 Accounts payable 110,000 30,000…
6 City Infrastructure Holdings Ltd (CIH) acquired 100% of the 300,000 issued shares in Network Maintenance Services (NMS) on 1 July 2021. The consideration provided to shareholders of NMS consisted of $1.20 in cash plus 1 share in CIH for each share held. The fair value of the CIH shares on the date of acquisition was $1.50. At the date of acquisition the records of NMS included the following information: Share Capital $300,000.00 General Reserve $30,000.00 Retained Earnings $410,000.00 All of the assets and liabilities in the records of NMS were considered to be fairly valued at the acquisition date with the exception of Equipment. Question : what is the total value of pre-acquisition capital and reserves?
On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABC Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 ABC Co. XYZ, Inc. Cash 20,000 10,000 Accounts receivable 60,000 24,000 80,000 Inventory Investment in subsidiary Equipment Accumulated depreciation Total assets 46,000 150,000 400,000 (40,000) 670,000 100,000 (20,000) 160,000 Accounts payable 40,000 60,000 12,000 Bonds payable Share capital 340,000 130,000 100,000 Share premium Retained earnings Total liabilities and equity 100,000 48,000 670,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Carrying Fair value increment Fair XYZ, Inc. values атounts 10,000 Cash 10,000 Accounts receivable 24,000 24,000 Inventory 46,000 62,000 16,000 Equipment 100,000 120,000 (24,000) 20,000 (4,000) (20,000)…
On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABC Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 XYZ, Inc. 10,000 АВССо. Cash 20,000 Accounts receivable 60,000 24,000 80,000 150,000 46,000 Inventory Investment in subsidiary Equipment Accumulated depreciation Total assets 400,000 100,000 (40,000) 670,000 (20,000) 160,000 Accounts payable Bonds payable Share capital 40,000 12,000 60,000 340,000 100,000 Share premium 130,000 Retained earnings Total liabilities and equity 100,000 48,000 670,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Carrying Fair Fair value XYZ, Inc. amounts values increment Cash 10,000 10,000 Accounts receivable 24,000 24,000 Inventory 46,000 62,000 16,000 Equipment Accumulated depreciation Accounts payable Net assets…
On 1/1/2020, ABC Corporation balance sheet included the following accounts: Patents $100,000, Bonds Payable $40,000. Common Stock $10,000, Retained Earnings $50,000. Book values of assets and liabilities were equal to their fair values. XYZ Corporation acquired 100% of the common stock of ABC Corporation on 1/1/2020 for $120.000 Cash. Which of the following entries was prepared to record the acquisition on XYZ's books? Patents Bonds Payable Cash Investment in Subsidiary Goodwill Gain on Acquisition of Business Debit $100,000 Credit $40,000 Credit $120,000 Debit $60.000
On January 1, 2019, GRANGER Co. acquired 80% interest in HISTORIA, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of GRANGER Co. and HISTORIA, Inc. immediately after the acquisition are shown below: Jan. 1, 2019 GRANGER Co. HISTORIA, Inc. Cash 20,000 10,000 Accounts receivable 60,000 24,000 Inventory 80,000 46,000 Investment in subsidiary 150,000 Equipment 400,000 100,000 Accumulated depreciation (40,000) (20,000) Total assets 670,000 160,000 Accounts payable 40,000 12,000 Bonds payable 60,000 - Share capital 340,000 100,000 Share premium 130,000 - Retained earnings 100,000 48,000 Total liabilities and equity 670,000 160,000 On January 1, 2019, the fair value of the assets and liabilities of HISTORIA, Inc. were determined by appraisal, as follows: HISTORIA,…
On 1/1/2020, ABC Corporation balance sheet included the following accounts: Patents $100,000, Bonds Payable $40,000, Common Stock $10,000, Retained Earnings $50,000. Book values of assets and liabilities were equal to their fair values. XYZ Corporation acquired 100% of the common stock of ABC Corporation on 1/1/2020 for $120,000 Cash. Which of the following entries was prepared to record the acquisition on XYZ's books? Patents? [Debit or credit by what amount] Bonds Payable? [Debit or credit by what amount] Cash? [Debit or credit by what amount] Investment in Subsidiary? [Debit or credit by what amount] Goodwill? [Debit or credit by what amount] Gain on Acquisition of Business? [Debit or credit by what amount]

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