At the beginning of 2018, Esterlina Corporation purchased 40% of the ordinary shares outstanding of Mary Grace Incorporated for P15, 000,000 when the netassets of Mary Grace Incorporated amounted to P30,000,000. Atthe acquisition date, the carrying amounts of the identifiable assets and liabilities of Mary Grace Incorporated were equal to their fair value, except for the following:a. Equipment whose fair value was P7,000,000 greater than its carrying amount.b. Inventory whose fair value was P2,500,000 greater than its carrying amount.The equipment has a remaining life of 4 years, and the inventory was all sold during 2013.Mary Grace Incorporated has two classes of shares: Ordinary shares (par value, P100), 300,000 shares outstanding, 15% cumulative preference shares (par value, P50), 100,000 shares outstanding.The investee reported the following net income (inclusive of enter-company transactions) and payment of cash dividend:2018Net IncomeDividend payment20,000,0005,000,000201935,000,0008,000,000The following were the intercompany transactions between the investor and the associates:In 2018, the Mary Grace Inco.porated sold inventory to Esterlina Corporation for P750,000. The costof the inventory was P500,000. 50% of this inventory was still unsold at the end of 2018, and the remainder were soldin 2019.b.aOn July 1, 2019, Esterlina Corporation sold equipment for P900,000 to Mary Grace Incorporated. The carrying amount of the equipment is P500,000 at the time of sale. The remaining life of the equipment is five years,and Mary Grace Incorporated uses the straight-line method of depreciating the equipment.On January 1, 2020, Esterlina Corporation sold 70,000 shares of Mary Grace Incorporated at P260 per share. The company incurred the broker's fee of P200,000. The sale resulted in a loss of significant influence of EsterlinaCorporation over the operation of Mary Grace Incorporated. Esterlina designates the investment at fair value through profit or loss on this date.During 2018, Mary Grace Incorporated earned P25,000,000 net income and a P10,000,000 cashdividend.The following are the market value of Mary Grace Incorporated shares at year-end:2018-P 156.0020192020- P 162.00- P 163,50Requirements:What is the carrying value of the investment on December 31, 2018? December 31, 2019? December 31, 2020?

NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

e fair value was P7,000,000 greater than its carrying amount. air value was P2,500,000 greater than its carrying amount. naining life of 4 years, and the inventory was all sold during 2013. has two classes of shares: Ordinary shares (par value, P100), 300,000 share

e fair value was P7,000,000 greater than its carrying amount. air value was P2,500,000 greater than its carrying amount. naining life of 4 years, and the inventory was all sold during 2013. has two classes of shares: Ordinary shares (par value, P100), 300,000 share

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Integrity Company, a newly formed company, had the following shares issued and outstanding as of April 1, 2022: Ordinary share, P20 par (20,000 shares originally issued for P60 per share) Preference share, P50 par (6,000 shares originally issued for P100 per share) How much is the Ordinary Share Capital, Preference Share Capital, and Share Premium, respectively? a. P400,000; P300,000; and P1,100,000 b. P1,200,000; P300,000; and P300,000 c. P400,000; P600,000; and P800,000 d. P1,200,000; P600,000; and P0
BananaQ Company was organized on January 1,2020, with an authorization of 400,000 ordinary shares, a par value of P6 per share. During 2020, the corporation had the folloWing capital transactions: January-5. July-28. December-31. Sold the 30,000 shares held in treasury at P18 per share Issued 225,000 share at P10 per share Purchased 30,000 of its own shares at P11 per share How many shares are issued and outstanding as of December 31,2020? Select the correct response: O 370,000 O 400,000 O 225,000 O 195,000 Continue > < Previous
4.) During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire year. Additional information are as follows: Ordinary share capital, par ₱10 - ₱1,000,000; 7% Preference share capital, ₱100 par, cumulative - ₱500,000. The net income for the year amounts to ₱500,000. What is the basic earnings per share?
The shareholders’ equity of Jungkook Corporation as of October 1, 2020 is presented below: Ordinary Share Capital, 100,000 shares, P 10 par- P1,000,000 Ordinary Share Premium- P500,000 Retained Earnings- P800,000 During October, 2020, the corporation had the following transactions: > Oct. 5- Reacquired 40,000 shares of its own Ordinary Shares for P 520,000. > Oct. 15- Sold 20,000 Treasury Shares at P 15 per share > Oct. 25- Sold another 10,000 Treasury shares for P 70,000. What is the balance of the Retained Earnings after the above transactions?
AB Co issues 5.000 50c shares for $6.000. Required: What are the amounts for share capital and share premium in the statement of financial position?
On June 30, 2020, when ABC shares were selling for $ 65 each, the equity accounts had the following balances: Common shares (par value $ 50: 50,000 issued) $ 2,500,000 Capital contributed in excess of par value 600,000 Retained earnings 4,200,000 A 100% share dividend is declared and distributed, the balance of the Common Shares account after recording the dividend will be: a. $2,500,000 b. $7,300,000 c. $3,100,000 d. $5,000,000
what's the total share issued and total share outstanding? and what's the answer of question 6?
Y Ltd issued 800 000 ordinary shares of 20 cents each at 25 cents each. At the point of issue all shares were fully called up. However, by the year-end R15 000 due on the share issue was yet to be received. What will be the amount reported as balance in the company’s Share Capital account? R185000 or R145000 or R200 000 or R160 000
Jupiter corporation had the following shares outstanding at December 31. 2018: Ordinary shares, par P80 - 320.000: 6% preference shares, par P80 - 160.000. Accumulated profits for dividend distribution amounted to P64.400. No dividends were declared for 2016 and 2017. If the preference share capital is cumulative and fully participating, what is the dividends per share of the preference share? (Round off answers to two decimal places.)
The shareholders' equity of Ningning Company shows the following balances on 31 December 2014: Ordinary share, P100 par - P3,000,000 Treasury share, 5,000 ordinary shares at cost - P400,000 Share Premium - P660,000 Retained Earnings - P1,580,000 What is the book value per share of ordinary shares? (Round answer to the nearest two decimal places)
Please answer in good accounting form. Thankyou During 2021, CAPTAIN AMERICA Company had two classes of shares issued and outstanding for the entire year. Additional information are as follows: Ordinary share capital, par ₱10 - ₱1,000,000; 7% Preference share capital, ₱100 par, cumulative - ₱500,000. The net income for the year amounts to ₱500,000. What is the basic earnings per share?