Company A acquired a 70% holding in Company B on 1 January 20X4 for $600,000. At that date the fair value of the net assets of Company B was $700,000. Company A measures non-controlling interest at its share of net assets. On 31 December 20X6 Company A sold all its shares in Company B for $950,000. At that date the fair value of Company B's net assets was $850,000. Goodwill was not impaired. What was the profit or loss on disposal to be recognised in the consolidated financial statements of Company A?

Q: WebHelper Incorporated acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for…

A: Implied fair value of goodwill = Fair value of SCC - Book value of SCC net assets(excluding…

Q: alculate for Parent for the year ended December 31, year 3: a) total consolidated income

A: Parent company: A company having controlling interest in another company is known as parent company.…

Q: Polypipe Company acquired 80% of Svedex Company’s voting stock for $95,000 in cash. The…

A: Noncontrolling interest, also known as minority interest, refers to the portion of a subsidiary's…

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A: Journal entry:The monetary transaction of the business is recorded in the books of accounts called…

Q: On January 1, 20X4, Pierce Corporation acquired 90 percent of Sharp Company's voting stock, at…

A:

Q: Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for…

A: Consolidation entry is recorded by the holding company to consolidate the accounts of its subsidiary…

Q: Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $96,000. At…

A: Here is the table of corrected consolidation entriesEntryAccountDebitCreditA1Common…

Q: Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $120,600.…

A: Since you have posted multiple questions, we are solving the 1st question for you. If you want any…

Q: On January 1, 20X1, Peace, Inc., acquired 70 percent of Silver's outstanding voting stock. No excess…

A: The equity accounting method is used for accounting of investments in associates and joint ventures.…

Q: What is the amount of consolidated net income attributable to controlling interest in 20x1?

A: Net income:The net income refers to the amount that is determined after taking care of all the…

Q: Pilfer Company acquired 90 percent ownership of Scrooge Corporation in 20X7, at underlying book…

A: Non of the answer given above is correct  Solution Cost of Goods Sold = 55000 * 60% = 33000 Sales =…

Q: RR Corporation acquired 80 percent of the stock of GG Company by issuing shares of its common stock…

A: working notes 1)    Computation of Net assets of GG Company Particulars Amount PHP…

Q: e Sylvia Company acquired a 70% interest in The Clarke Company for 1,420,000 when  the fair value of…

A: Goodwill: It is the difference between consideration paid and net identifiable assets. in the given…

Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45…

A: SSC will be the reporting entity. The book value incorporating goodwill will be contrasted with the…

Q: Pilfer Company acquired 90 percent ownership of Scrooge Corporation in 20X7, at underlying book…

A: Inter-company transaction: Intercompany transactions can include the buying and selling of goods or…

Q: Pilfer Company acquired 90 percent ownership of Scrooge Corporation in 20X7, at underlying book…

A: Inter-company transaction: Intercompany transactions can include the buying and selling of goods or…

Q: Pie Corporation acquired 75 percent of Slice Company’s ownership on January 1, 20X8, for $96,000. At…

A: An amalgamation is a combination of two or more companies into a new entity. A merger takes place…

Q: Pisa Company acquired 75 percent of Siena Company on January 1, 20X3, for $712,500. The fair value…

A: ANSWER:- a. 20X3 Book value calculation:-   NCI 25% + Pisa Co 75% = Common Stock + Retained…

Q: The Peer Company paid $3,500,000 for all of the shares of Sam Company on January 1 of year 1. As of…

A: Lets understand the basics.When acquisition is made by the one entity to another entity then either…

Q: Practical Corporation acquired all of the common stock of Simple Company for $450,000 on January 1,…

A: Goodwill refers to an intangible asset that is recorded in the balance sheet. Goodwill is reported…

Q: On January 1, 20X8, Plane Company acquired 80 percent of Scalar Company's ownership for $120,000…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: On January 1, 20X1, Peace, Inc., acquired 70 percent of Silver's outstanding voting stock. No excess…

A: The equity method is used to record the value of an investment that a company makes in another…

Q: On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Incorporated, a…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: DC Company purchased 100% of the outstanding common shares of FA Company on December 31, 20X3 for…

A: At the time of business combination, if the fair value of an asset exceeds its carrying amount, the…

Q: ildings and equipment was $27,000 on the acquisition date. Buil nagement of Pie concluded at…

A: The consolidation is a form of investment accounting which is used for integrating as well as…

Q: BLACKPINK Company acquired a 70% interest in the LISA Corp. for P1,420,000 when the book value of…

A: This question deals with the computing goodwill for BLACKPINK’s consolidated financial statement.…

Q: Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At…

A: Consolidation Accounting It is the method  to combine financial results of subsidiary companies into…

Q: Pillow Corporation acquired 80 percent ownership of Sheet Company on January 1, 20X7, for $173,000.…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $170,000. Share…

A: Given Information:Share capital (Terry Limited): $100,000Reserves (Terry Limited):…

Q: On January 1, 20X1, the Knight Corporation acquired 80% of the Red Company’s voting stock for…

A: Goodwill is an intangible asset that is created when one company acquires another company for more…

Q: On January 1, 20X4, Pierce Corporation acquired 90 percent of Sharp Company's voting stock, at…

A: Step 1: Step 2:

Q: Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at…

A: Consolidation entries are prepared when an entity acquires any other entity to have control and…

Q: X company acquired 90% of the voting stock of company Y by paying $75,000 in cash and stock. The…

A: Non controlling interest is the part of voting stock of the subsidiary which belongs to the…

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.