Delta Corporation acquires 70 percent of Bravo Company’s stock. What amount of non-controlling interest is recognized on the acquisition date balance sheet if Telephone has the following account balances? Book Value Market Value Cash P10,000 P10,000 Inventory 80,000 80,000 Plant Assets (net) 350,000 350,000 Cost of Goods Sold 130,000 Depreciation Expense 20,000 Liabilities (110,000) (110,000) Common Stock (30,000) Retained Earnings (260,000) Sales (190,000) Please explain step by step with clear explanation

Delta Corporation acquires 70 percent of Bravo Company’s stock. What amount of non-controlling interest is recognized on the acquisition date balance sheet if Telephone has the following account balances? Book Value Market Value Cash P10,000 P10,000 Inventory 80,000 80,000 Plant Assets (net) 350,000 350,000 Cost of Goods Sold 130,000 Depreciation Expense 20,000 Liabilities (110,000) (110,000) Common Stock (30,000) Retained Earnings (260,000) Sales (190,000) Please explain step by step with clear explanation

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 30E

See similar textbooks

Related questions

Q: Book Value P50,000 Market Value P50,000 200,000 600,000 Cash Inventory Plant Assets (net) Cost of…

A: Goodwill on acquisition shows the excess amount paid over the share of net identified assets…

Q: 1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book…

A: If a company acquires all the shares of another company, it acquires 100% control over that company.…

Q: On January 1, 2014, Punch Corporation purchased 100% of the common stock of Soopy Co. Separate…

A: Consolidated balance sheet refers to the combined balance sheet of the holding and subsidiary…

Q: On January 1, 20X0, Pepper Corporation issued 10,000 of its $15 par value shares to acquire 45…

A: When the company acquires another co. business, it's called the acquisition of a business. The…

Q: nuary 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation…

A: A balance sheet is a financial statement that shows an organization's "book value," which is…

Q: The inventories of SS Corp. and PP Corp. has a fair value of P400,000 and P550,000 , respectively.…

A: Step 1 Consolidated Equity means, an amount equal to the aggregate book value of the assets of the…

Q: On January 1, 20X0, Pepper Corporation issued 10,000 of its $15 par value shares to acquire 45…

A: Journal Entry is the primary step to record the transaction in the books of accounts. The amount…

Q: Assets Cash and receivables Inventory Land Buildings and equipment (net) Investment in Solution…

A: Problem Company and Subsidiary…

Q: Cash $ 24,800 Accounts payable $ 1,891,800 Accounts receivable 102,000 Inventory 223,000…

A: Book value refers to the value which is attained by computing the difference between the total…

Q: Top Corporation acquired 100 % of Sun Corporation’s common stock on December 31,2019. Balance sheet…

A: Total Assets of Combined Entity = Assets of Acquirer Company + Fair Value of Assets of Acquiree…

Q: On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation…

A: The goodwill is recorded as intangible assets on the balance sheet of the firm.

Q: 20. Goodwill (income) to be recorded by West Corp. 21. Total assets on the consolidated balance…

A: As per our protocol we provide solution to the one question only and you have asked multiple…

Q: Prepare the journal entry to record the acquisition expenses

A: Legal fees $50,000 Accounting fees $30,000 Travel expenses $10,000 Legal fees…

Q: Gr Current assets Property, plant & equipment, net Identifiable intangible assets Current…

Q: Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the…

A: Acquiring company should record assets and liabilities at market value as 'Investment in Subsidiary…

Q: he inventories of SS Corp. and PP Corp. has a fair value of P400,000 and P550,000 , respectively.…

A: Step 1 Consolidated Equity means, an amount equal to the aggregate book value of the assets of the…

Q: Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the…

A: Consolidation- The consolidated financial statement, which represents the financial status of both a…

Q: Breakspear Co purchased 600,000 of the voting equity shares of Fleet Co when the value of the…

A: Solution: We have the following information: Breakspear Co purchased 600,000 of the voting…

Q: repare all necessary eliminating entries at 12/31/X3. Hint - there are 4.

A: Goodwill $85,500 Detailed explanation Fair Value of Net Assets = 400,000 (Capital Stock) +…

Q: Top Corporation acquired 100% of Sun Corporation’s common stock on December 31,2019. Balance sheet…

A: Goodwill = Purchase Consideration - Net Assets of Acquiree Company

Q: Which of the following is not one of the eliminations and adjustments included on the consolidation…

A: The eliminations and adjustments which are required at the time of preparation of consolidated…

Q: The foi uances were taken Trom the trial balance oI pany anu npany al the start of the fiscal year…

A: Acquisition takes place when one company buys more than 50% of a target company's shares to gain…

Q: ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ…

Q: Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance…

A: Stockholders' equity is the amount which represents the amount of ownership of the shareholders in…

Q: Book Value Market Value Cash P10,000 P10.000 Inventory 80,000 80,000 Plant Assets (net) 350,000…

A: Net profit Sales 190000 Less: Cost of goods sold (130000) Less :Depreciation (20000) Net…

Q: Top Corporation acquired 100% of Sun Corporation’s common stock on December 31,2019. Balance sheet…

A: Goodwill = Purchase Consideration - Fair Value of Net Assets of Acquiree

Q: Audi Motors acquired 80% of BMW Service Center outstanding shares on January 1, 2022 by paying cash.…

A: The amount of the fair value of the assets paid, liabilities incurred, and equity issued by the…

Concept explainers

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.

Question

Book Value Market Value

Cash P10,000 P10,000

Inventory 80,000 80,000

Plant Assets (net) 350,000 350,000

Cost of Goods Sold 130,000

Depreciation Expense 20,000

Liabilities (110,000) (110,000)

Common Stock (30,000)

Retained Earnings (260,000)

Sales (190,000)

Please explain step by step with clear explanation on how it happened.Thank you.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

3. Delta Corporation acquires 70 percent of Bravo Company's stock. What amount of non-controlling interest is recognized on the acquisition date balance sheet if Telephone has the following account balances? Book Value Market Value Cash P10,000 P10.000 Inventory 80,000 80,000 Plant Assets (net) 350,000 350,000 Cost of Goods Sold 130,000 Depreciation Expense 20,000 Liabilities (110,000) (110,000) Common Stock (30,000) Retained Earnings (260,000) Sales (190,000)
1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the "Investment in F" account on S's financial records at the acquisition date? * Book Value Market Value P30,000 Cash and Receivables P30,000 100,000 210,000 Inventory Plant Assets (net) Current Liabilities 120,000 300,000 (45,000) (115,000) (45,000) (115,000) (10,000) (170,000) Long-term Debf Common Stock Retained Earnings
On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date. In good accounting form, please. Thank you! <33
S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date?
S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below). What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?
S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date? What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination? Please answer in good accounting form. Thank you!
Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the following book and market values: (see information below) What is the amount of the “Investment in Ferries” account on Amazon’s financial records at the acquisition date? Book value Market value Cash and Receivables 90,000 90,000 Inventory 100,000 100,000 Plant assets (net) 220,000 300,000 Current liabilities (45,000) (45,000) Long-term debt (114,000) (114,000) Common stock (10,000) Retained earnings (170,000)
Peer, Inc. acquires 75 percent of Sea-breeze Corporation for P600,000 cash on January 1, 2016. The remaining percent of the Sea-breeze shares traded near a total value of 200,000 both before and after the acquisition date. NCI is measured on a full basis .On January 1, 2016, Sea-breeze had the following assets and liabilities: Book Value Fair Value Current Assets P 250,000 P 250,000 Land 100,000 100,000 Building (net) – 5-year-year life 400,000 350,000 Equipment (net) – 8-year life 300,000 400,000 Patent (10-year life) -0- 50,000 Accounts Payable (200,000) (200,000) Bonds Payable – 5-years (150,000) (175,000) Net P 700,000 P 775,000 Common Stock P 650,000 Retained Earnings P 50,000 The companies’ financial statements for the year ending December 31, 2016 using cost method are as follows: Peer Sea-Breeze Revenue P (800,000) P (250,000) Operating expenses…
2. Apple Company purchases 80 percent of Mango. At the date of acquisition, Mango has revenue of P250,000 and expenses of P170,000. What amount of pre-acquisition eamings will be created on the consolidated income statement at the acquisition date?
ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of non-controlling interest on the acquisition date consolidated balance sheet? * Book Value P40,000 170,000 Market Value P40,000 230,000 700,000 Cash Inventory Plant Assets (net) Cost of Goods Sold 620,000 220,000| 60,000 Depreciation Expense Liabilities (300,000) (10,000) (450,000) (350,000) (300,000) Common Stock Retained Earnings Sales Your answer
Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the following book and market values: (see information below) What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination? Book value Market value Cash and Receivables 90,000 90,000 Inventory 100,000 100,000 Plant assets (net) 220,000 300,000 Current liabilities (45,000) (45,000) Long-term debt (114,000) (114,000) Common stock (10,000) Retained earnings (170,000)
ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of purchase differential recognized on the acquisition date consolidated balance sheet with respect to plant assets. *In good accounting form, please. Thank you!