ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were w

Q: On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney…

A: ANSWER THE PURCHASE PRICE PAID BY THE COMPANY FOR ACQUISITION OF ANOTHER COMPANY IS MORE THAN THE…

Q: On January 1, 2027, Kasson Company acquired 40% of IJK Company's common stock for $183,000. Kasson…

A: IJK, is a public company which has its share available for retail investing. Therefore Kasson…

Q: On December 31, 2017, X Company paid $3,600,000 for 100% of the stock of Y Company when Y's…

A: To calculate the amount of goodwill reported on X Company's December 31, 2018 balance sheet, we need…

Q: On July 1, 2023, Jerry Corporation acquired 25% of the shares of Von, Inc. for P1,000,000. At that…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: Parent and Sub Inc had the following balance sheets on December 31, 2021 (see image below). On…

A: Consolidation of financial statement occurs when one company take over the assets and liabilities of…

Q: On January 1, 2019, Palm Corporation acquired 70 percent of Smart Company's common stock for…

A: Goodwill is an intangible asset that appears on the asset side of the Balance Sheet.. In…

Q: On January 1, 2022, Green Company paid $1,000,000 to acquire White Corporation, which became the…

A: Goodwill is recognized in the book when consideration paid to acquired net assets exceeds the fair…

Q: On January 1, 2024, Cameron Incorporated bought 30% of the outstanding common stock of Lake…

A: The equity method of investment accounting is used when a corporation (the investor) purchases a…

Q: On May 31, 2021, Ivanhoe Company paid $3,640,000 to acquire all of the common stock of Oriole…

A: Goodwill = Price paid - Fair value of net assets

Q: ABC Co. paid P150,000 for its 75% interest in DEF Co. ABC elected to value NCI at fair value. DEF's…

A: NCI is calculated as per partial goodwill method or fully goodwill method. As per the full goodwill…

Q: Akron, Incorporated, owns all outstanding stock of Toledo Corporation. Amortization expense of…

A: When two or more financial items, assets, liabilities, or other entities are combined into one, this…

Q: trial balance, translated into U.S. dollars, contained $1 d income of 93400 pounds for 2019 and paid…

A: Based on preceeding information, the receipt of the dividend will result in a credit to the…

Q: Use the following to answer questions 8 through 10: On May 1, 2021, Jazzie Co. agreed to sell the…

A: SOLUTION-   WORKING NOTE- GAIN ON ASSET  SALE =  ($80 MILLION - $ 48 MILLION)…

Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…

A: Goodwill or gain on bargain purchase is a gap between the consideration paid and net identifiable…

Q: On January 1, 2019, Palm Corporation acquired 70 percent of Smart Company's common stock for…

A: Goodwill is an intengible asset it can be purchased or acquired. On acquisition of other entity…

Q: Matrix, Inc., acquired 25% of Neo Enterprises for $2,000,000 on January 1, 2021. The fair value and…

A: Journal entries should not be utilized to record regular transactions such as customer billings and…

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.