ABC Co. paid P150,000 for its 75% interest in DEF Co. ABC elected to value NCI at fair value. DEF's net identifiable assets approximated their fair values at acquisition date. The acquisition resulted in a goodwill attributable to NCI of P10,000. Since the acquisition date, DEF has made accumulated profits of P200,000. There have been no changes in DEF's share capital since acquisition date. The group determined that goodwill has been impaired by P8,000. A summary of the individual statements of financial positions of the entities as at the end of reporting period is shown below: ABC Co. DEF Co. Total assets 1,000,000 500,000 Total liabilities 200,000 120,000 Share capital Retained earnings 300,000 100,000 500,000 280,000 Total liabilities and equity 1,000,000 500,000 How much is the NCI in net assets?

At the beginning of the current year, FFF Company acquired 20% of the outstanding ordinary shares of Vee Company for P8,000,000. This investment gave FFF the ability to exercise significant influence over Vee. The carrying amount of the acquired shares was P6,000,000. The excess of cost over carrying amount was attributed to a depreciable asset which was undervalued on Vee's statement of financial position and which had a remaining useful life of 10 years. The investee reported net income of P1,800,000 and paid cash dividends of P400,000 and thereafter issued 5% share dividend during the current year. What amount should be reported as investment income for the current year?

At the beginning of the current year, FFF Company acquired 20% of the outstanding ordinary shares of Vee Company for P8,000,000. This investment gave FFF the ability to exercise significant influence over Vee. The carrying amount of the acquired shares was P6,000,000. The excess of cost over carrying amount was attributed to a depreciable asset which was undervalued on Vee's statement of financial position and which had a remaining useful life of 10 years. The investee reported net income of P1,800,000 and paid cash dividends of P400,000 and thereafter issued 5% share dividend during the current year. What is the carrying amount of the investment in associate at year-end?

On January 1, 2022, Pacer Corporation (Pacer) acquired 80% of Sprint Ltd. (Sprint) Corp. for $500,000. Please uses the cost method to account for its investment. On January 1, 2022, Sprint's retained earnings and common shares were $350,000 and $110,000, respectively. Sprint's book values did not differ materially from its fair values on the date of acquisition with the following exceptions: • Inventory had a fair value that was $20,000 higher than its book value. This inventory was sold to outsiders during 2022. • A patent (which had not previously been accounted for) was identified on the acquisition date with an estimated fair value of $15,000. The patent had an estimated useful life of 3 years. The financial statements of Pacer and Sprint for the year ended December 31, 2023 are shown below: Income Statements Pacer Corporation Sprint Ltd. Sales $500,000 $300,000 Other revenues 300,000 120,000 Less: expenses Cost of goods sold 400,000 240,000 Depreciation/amortization…

On January 1, 2XX1, Bald Eagle Corporation purchased 100% of the common stock Ohio Enterprises for $1,800,000. This transaction is a "nontaxable" acquisition under the Internal Revenue Code. On the date of acquisition, Ohio had common stock of $600,000 and retained earnings of $840,000. The fair values of Ohio's net assets equal their respective book values except for equipment that is undervalued by $90,000 and an unrecorded brand name valued at $135,000. Assume that the tax bases of Ohio's pre-acquisition identifiable net assets equal their book values. Bald Eagle's tax effective tax rate is 30%. What is the amount of goodwill recorded in connection with this combination? Select one: O a. $135,000 O b. $202,500 O c. $67,500 d. $-0-

Puncho Company is acquiring the net assets of Semos Company in exchange for common stock valued at $900,000. The Semos identifiable net assets have book and fair values of $400,000 and $800,000, respectively. Compare accounting for the acquisition (including assignment of the price paid) by Puncho with accounting for the sale by Semos.

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Windell Inc. acquired 85% of the outstanding voting shares of Ralph Corp forP1,500,000. On the acquisition date, Ralph's identifiable assets and liabilities havefair values of P6,000,000 and P4,700,000, respectively. Windell opts to measure thenon-controlling at a fair value of P300,000. How much is the goodwill (gain onbargain purchase) as a result of the business combination?

(TCO E) Several years ago, Polar Inc. acquired an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were considered to be equal to their fair values. Polar's acquisition value corresponded to the underlying book value of Icecap so that no allocations or goodwill resulted from the transaction.The following selected account balances were from the individual financial records of these two companies as of December 31, 20X1.   Polar Inc. Icecap Co. Sales $896,000 $504,000 Cost of goods sold 406,000 276,000 Operating expenses 210,000 147,000 Retained earnings, 1/1/11 1,036,000 252,000 Inventory 484,000 154,000 Buildings (net) 501,000 220,000 Investment income Not given   Assume that Polar sold inventory to Icecap at a markup equal to 25% of cost. Intra-entity transfers were $130,000 in 20X0 and $165,000 in 20X1. Of this inventory, $39,000 of the 20X0 transfers were retained and…

On January 1, 2022, Monica Company acquired 70 percent of Young Company's outstanding common stock for $658,000. The fair value of the noncontrolling interest at the acquisition date was $282,000. Young reported stockholders equity accounts on that date as follows: Common stock-$10 par value Additional paid-in capital Retained earnings In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining life) by $40,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years. During the subsequent years, Young sold Monica inventory at a 30 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following: Year 2022 2023 2024 Transfer Price $ 300,000 40,000…