Plz answer fast no plagiarism please show work and what is correct option and incorrect option and why? Beaver Inc. and Victoria Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victoria's accounts on that date (prior to creating the combination) follow,along with the book value of Beaver's accounts:Current assetsBuilding and equipment (net)LiabilitiesCommon StockAdditional paid-in capitalRetained earnings, 1/1/2023O $557,000.O $600,000.O $548,000.BeaverBookValueO $60,000.VictoriaBookValue$400,000 $250,000 $300,000.880,000 540,000 690,000650,000 430,000360,000 80,000250,00020,000 40,000VictoriaFair Value240,000Assume that Beaver issued 12,000 shares of common stock with a $5 par value and a $50 fair value to obtain all of Victoria's outstanding stock. In addition, Beaver paid legal costsof $9,000 in connection with the acquisition and $3,000 in stock issue costs, which is not yet reflected in the information above.Immediately after the transactions of business combination, what is the balance of Additional Paid-in Capital reported on Beaver's book?430,000

Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…

Beaver Inc. and Victoria Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victoria's accounts on that date (prior to creating the combination) follow, along with the book value of Beaver's accounts: Current assets Building and equipment (net) Liabilities Common Stock Additional paid-in capital Retained earnings, 1/1/2023 O $557,000. O $600,000. O $548,000. Beaver Book Value O $60,000. 880,000 Victoria Book Value $400,000 $250,000 $300,000 650,000 540,000 690,000 Victoria Fair Value 430,000 430,000 360,000 80,000 20,000 40,000 Assume that Beaver issued 12,000 shares of common stock with a $5 par value and a $50 fair value to obtain all of Victoria's outstanding stock. In addition, Beaver paid legal costs of $9,000 in connection with the acquisition and $3,000 in stock issue costs, which is not yet reflected in the information above. * Immediately after the transactions of business combination, what is the balance of Additional Paid-in Capital reported on Beaver's book? 250,000 240,000

Beaver Inc. and Victoria Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victoria's accounts on that date (prior to creating the combination) follow, along with the book value of Beaver's accounts: Current assets Building and equipment (net) Liabilities Common Stock Additional paid-in capital Retained earnings, 1/1/2023 O $557,000. O $600,000. O $548,000. Beaver Book Value O $60,000. 880,000 Victoria Book Value $400,000 $250,000 $300,000 650,000 540,000 690,000 Victoria Fair Value 430,000 430,000 360,000 80,000 20,000 40,000 Assume that Beaver issued 12,000 shares of common stock with a $5 par value and a $50 fair value to obtain all of Victoria's outstanding stock. In addition, Beaver paid legal costs of $9,000 in connection with the acquisition and $3,000 in stock issue costs, which is not yet reflected in the information above. * Immediately after the transactions of business combination, what is the balance of Additional Paid-in Capital reported on Beaver's book? 250,000 240,000

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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Benjamin Inc. and Victor Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victor's accounts on that date (prior to creating the combination) follow, along with the book value of Benjamin's accounts: Current assets Building and equipment (net) Liabilities Common Stock Additional paid-in capital Retained earnings, 1/1/2023 O $200,000. Benjamin Book Value $50,000. O $70,000. O $90,000. Victor Book Value $420,000 $170,000 $230,000 790,000 410.000 480,000 620,000 380,000 380,000 400,000 90,000 Victor Fair Value 70,000 30,000 120,000 80,000 Assume that Benjamin issued 10,000 shares of common stock with a $5 par value and a $40 fair value to obtain all of Victor's outstanding stock. In addition, Benjamin paid legal costs of $8,000 in connection with the acquisition and $4,000 in stock issue costs, which is not yet reflected in the information above. On its acquisition-date consolidated balance sheet, what amount should Beaver report as goodwill?
Use the following information for the next three items: On January 2, 2019, the Statement of Financial Position of Pepper and Steak Company prior to the combination are: Pepper Co. Steak Co. Cash Inventories PPE, net Total Assets Current Liabilities Common stock, P100 par Additional Paid in capital Retained earnings Total Liabilities and Stockholders' equity The fair value of Steak Company's equipment is P153,000. Assume the following independent cases: P450,000 300,000 750,000 P1,500,000 A. P1,410,000 B. P1,419,600 P 90,000 150,000 450,000 810,000 P1,500,000 18. Assuming Pepper Company acquired 70% of the outstanding common stock of Steak Company for P105,000 and Non-controlling interest is measured at fair value of P61,000, how much is the goodwill (gain on acquisition)? C. P23,100 A. P(17,000) D. P(23,100) B. P17,000 or 19. Assuming Pepper Company acquired 80% of the outstanding common stock of Steak Company for P136,800 and non-controlling interest is measured at non-controlling…
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On January 31, 2022, Parent Company purchased all the identifiable net assets of Sub Company by transferring cash of P1,200,000 and issuing 100,000 shares with par value of P20 and fair value of P32. Parent will pay additional amount depending on the net income achieved by Sub at year-end: Net Income @ year-end 50,000,000 Consideration to be transferred 1,000,000 2,000,000 3,000,000 Case 1 75,000,000 100,000,000 Book value of Parent and Sub at the date of acquisition were as follows: Parent 1,000,000 1,600,000 2,400,000 Sub 800,000 1,400,000 800,000 Cash Accounts receivable Inventory Buildings 5.000,000 10,000,000 2,800,000 5,800,000 1,000,000 1,200,000 800,000 Total assets Accounts payable Common stock, P2 par Share premium Retained earnings Total liabilities and equities 2,400,000 2,000,000 1,600,000 4,000,000 10,000,000 2,800,000 5,800,000 At the date of acquisition, Parent assessed that Sub will reach at least 60,000,000 of net income for 2022. Book value of the identifiable net…
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What is the amount of total assets of PNB on january 1, 2018 after the merger?
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Illustration 1. Share-for-share exchanges On January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of the assets, liabilities and equity of Frank and Richard before the business combination are as follows: On the negotiation for the business combination, the acquirer incurred the following transaction costs: P45,000.00 for legal fees; P 5,000.00 for due diligence cost and P 80,000.00 for the general admin cost and cost of maintaining an internal acquisition department. Case 1: before the transaction, Frank, Co. have 7,000 outstanding shares. Frank Co. Issued additional 10,000 shares as consideration for a 100% interest in Richard. Frank’s shares currently sells P150 per share in the market, while Richard’s shares are quoted at P200 per share. With the stated facts, answer the following: 1.How much is the Share Premium of the combined company after the business combination?a. P 730,000.00b. P 1,230,000.00c. P 800,000.00d. P 1,700,000.002.How much is…
Illustration 1. Share-for-share exchanges On January 1, 2022, Frank Co. and Richard, Inc. combined. As of this date, the fair values of the assets, liabilities and equity of Frank and Richard before the business combination are as follows: On the negotiation for the business combination, the acquirer incurred the following transaction costs: P45,000.00 for legal fees; P 5,000.00 for due diligence cost and P 80,000.00 for the general admin cost and cost of maintaining an internal acquisition department. Case 1: before the transaction, Frank, Co. have 7,000 outstanding shares. Frank Co. Issued additional 10,000 shares as consideration for a 100% interest in Richard. Frank’s shares currently sells P150 per share in the market, while Richard’s shares are quoted at P200 per share. With the stated facts, answer the following: 1.How much is the Share Premium of the combined company after the business combination?a. P 730,000.00b. P 1,230,000.00c. P 800,000.00d. P 1,700,000.002.How much is…
On 1 July 2021, James Ltd acquired all the issued shares of Dean Ltd for $350,000. At this date, the financial statements of Dean Ltd showed the following: $ Share capital 270,000 Retained earnings 26,500 General Reserve 8,800 Total equity 305,300 Goodwill 25,000 At acquisition date, all the net identifiable assets and liabilities in Dean Ltd were recorded at amounts equal to their fair value except for: Asset Carrying amount ($) Fair Value ($) Inventories 15,000 18,000 Plant (cost $400,000) 210,000 220,000 The Plant was calculated to have a further life of 5 years, and was depreciated on a straight-line basis. All inventory was sold by 30 June 2020. Assume 30% tax rate Required: Prepare the acquisition analysis at 1 July 2021. Prepare the consolidation entries at acquisition date, 1 July 2021. Include narrations for each entry. Prepare the consolidation worksheet as at 1 July 2021. Prepare a Balance sheet for the reporting Group, James Ltd as at 1 July 2021 in narrative format.
11. Parent and Sub Inc had the following balance sheets on December 31, 2021 (see image below). On January 1, 2022 Parent purchased all of Sub Inc's Common Shares for P40,000 in cash. On that date, Sub's Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, the Current Assets of the combined entity should be valued at how much? Curent Assets Fixed Assets (net) Total Assets Curent Liabilities Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity Parent P 60,000 100,000 P160.000 P 42,000 20,000 90,000 8,000 P160.000 Sub P10,000 60,000 P70.000 P35,000 12,000 12,000 11,000 P70.000 Your answer 12. Using the same information in #11, Assuming that Consolidated Financial Statements were prepared on that date, the Goodwill of the combined entity should be valued at how much? * Your answer