The machinery has a remaining useful life of 5 years. Mobi Co.'sdividends of P500,000 in 20x1. How much are the (1) impliedgoodwill (negative goodwill) on the investment; (2) share in theNALof Black Coling sharesir values. Ied and paidrevaluationfor the yeCo. reportin associa4. On January 1, 20x1, Arco Co. acquired 20% interest in MobiCo. for P1,600,000. On this date, the carrying amounts of MobiCo.'s assets and liabilities approximate their fair values exceptfor the following:InventoryMachineryCarrying amountFair value300,0001,800,000400,0001,500,000ai equity, at book value, was P8,000,000 on Jan. 1, 20x1. Mobieported profit of P3,000,000 and declared and paid cash0.0000,000will (negative goodwill) on the investment; (2) share in the Chapter 14Investassociate's profit in 20x1; and (3) carrying amount of theinvestment in associate on Dec. 31, 20x1?a. 40,000; 592,000; 2,029,000b. 50,000; 750,000; 2,255,000c. (40,000); 632,000; 2,132,000d. 40,000; 592,000; 2,092,000

An associate is the one whose 20% to 50% shares are held by another company. Such a company has…

4. On January 1, 20x1, Arco Co. acquired 20% interest in Mobi Co. for P1,600,000. On this date, the carrying amounts of Mobi Co.'s assets and liabilities approximate their fair values except for the following: Fair value Carrying amount 300,000 400,000 Inventory Machinery 1,800,000 1,500,000 e machinery has a remaining useful life of 5 years. Mobi Co.'s total equity, at book value, was P8,000,000 on Jan. 1, 20x1. Mobi Co. reported profit of P3,000,000 and declared and paid cash dividends of P500,000 in 20x1. How much are the (1) implied goodwill (negative goodwill) on the investment; (2) share in the

4. On January 1, 20x1, Arco Co. acquired 20% interest in Mobi Co. for P1,600,000. On this date, the carrying amounts of Mobi Co.'s assets and liabilities approximate their fair values except for the following: Fair value Carrying amount 300,000 400,000 Inventory Machinery 1,800,000 1,500,000 e machinery has a remaining useful life of 5 years. Mobi Co.'s total equity, at book value, was P8,000,000 on Jan. 1, 20x1. Mobi Co. reported profit of P3,000,000 and declared and paid cash dividends of P500,000 in 20x1. How much are the (1) implied goodwill (negative goodwill) on the investment; (2) share in the

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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