68 Advanced Corporate Accounting 4. Spring Field Ltd. is absorbed by Sports Field Ltd., the consideration being: 1. The taking over of the trade liabilities of 740,0003; 2. The payment of cost of absorption of 15,0003; 3. The repayment of B' debentures of Spring Field Ltd. of 2,00,000 at par, 4. The discharge of 'A' debentures of 3,00,000 in the Vendor Co. at n premium o of 8% debentures in Sports Field Ltd. at par, 5. A payment of 20 per share in cash and the exchange of 4 fully paid 10 sha Ltd. at a market price of 15 per share for every 50 share in Spring Field Ltd. v in number.

68 Advanced Corporate Accounting 4. Spring Field Ltd. is absorbed by Sports Field Ltd., the consideration being: 1. The taking over of the trade liabilities of 740,0003; 2. The payment of cost of absorption of 15,0003; 3. The repayment of B' debentures of Spring Field Ltd. of 2,00,000 at par, 4. The discharge of 'A' debentures of 3,00,000 in the Vendor Co. at n premium o of 8% debentures in Sports Field Ltd. at par, 5. A payment of 20 per share in cash and the exchange of 4 fully paid 10 sha Ltd. at a market price of 15 per share for every 50 share in Spring Field Ltd. v in number.

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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Question 7 Correct Mark 10.00 out of 10.00 Effect on consolidated net income of acquisition of affiliate's debt from non-affiliate A Parent Company owns 100 percent of its Subsidiary. During 2021, the Parent company reports net income (by itself, without any investment income from its Subsidiary) of $540,000 and the subsidiary reports net income of $216,000. The parent had a bond payable outstanding on January 1, 2021, with a carrying value equal to $453,600. The Subsidiary acquired the bond on January 1, 2021, for $426,600 During 2021, the Parent reported interest expense (related to the bond) of $37,800 while the Subsidiary reported interest income (related to the bond) of $34,560. What is consolidated net income for the year ended December 31, 2021? Select one: a. $783,000 b. $756,000 c. $759,240 d. $786,240 Remove flag Check
Hw.44. The following information relates to Adele Ltd. Since the date of acquisition, Adele Ltd has held interests in multiple subsidiaries totalling DNCI of 25%, and INCI of 15%. The following summarised financial information is provided: Retained earnings at DOA $117,000 Retained earnings at 1/7/2021 $476,000 Current period profit for year ended 30/6/2022 $236,000 Required: a) Based on the financial information you have available, prepare the journal entries to record the allocation to NCI upon consolidation on 30 June, 2022. Your workings and narrations will be awarded marks. (show consolidation journals) b) Briefly explain what effect these journal entries have on the consolidated financial reports.
In preparing the subsidiary company's incom distribution schedule (ids) how is the total distribution to non_controlling interest calculated
The Consolidated/Group Net Income for 20x1: A. 356,500 B. 362,200 C. 363,075 D. 387,375
Kk.25.
Problem 2At December 31, 20x4, Baby Corporation acquired all of Mommy Enterprises’ common stock. At that date, the book Values and fair values of Mommy’s identifiable assets and liabilities were identical. Balance sheet data for the individual companies and the consolidated entity on January 1, 20x5, are as follows: 1. Assuming there were no inventory transactions between the companies, what balance for inventory should be reported in the consolidated balance sheet?a. P 0b. P90,000c. P120,000d. P210,0002. What amount did Baby pay to acquire Mommy? Was this amount equal to, greater than, or less than underlying book value? How do you know?a. P110,000; P30,000 greater thanb. P110,000; P30,000 less thanc. Zero; P30,000 less thand. Zero; P30,000 greater than 3. Baby sold land it had purchased 12 years earlier for P10,000 to Mommy immediately after it acquired Mommy. At what price did baby sell the land to Mommy?a. P10,000b. P15,000c. P25,000d. P40,000
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Help for parts D, E,F
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