imus, Incorporated, owns all outstan any investment income) of $576,00 76,000 for the period, with 40,000 s ow the holder to acquire shares at $ 000 of these warrants.
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- Use the following information for the next five questions:On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. How much is the gain on acquisition or goodwill to be recognized?Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart’s entry to record the Melody dividend includes a:Harrison Co. owns 20,000 of the 50,000 outstanding ordinary shares of Taylor, Inc. During 2021, Taylor earns P800,000 and pays cash dividends of P640,000. If the beginning balance in the investment account was P500,000, the balance at December 31, 2021 should be a. P500,000 b.) P564,000 c.) P660,000 d.) P820,000
- 4.The amount of the investor's initial investment in Aspect Co's shares is $40,000. The investor has a 30% ownership interest to which the investor applies equity method. The table summarises the associate's profit (loss) for each year. At what amount will investor report its investment in Aspect Co in its consolidated statements of financial position at the end of each financial year? At the Profit (loss) of the The investment in the associate in the consolidated statement of financial position end of associate $'000 $'000 50 2 (180) 100please prepare the journal entries Q1. Sold 22,500 Treasury shares at $2 each. Q2. Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to Q1 of additional information.) Q3. A 10% share dividend was declared when the market value per share was $2.1. Q4. Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart’s entry to record the Melody dividend includes a a. Credit to Investment Revenue for $50,000. b. Credit to Equity Method Investments for $17,500. c. Credit to Cash for $17,500. d. Debit to Equity Method Investments for $17,500. e. Debit to Cash for $50,000.
- January 1, 20x1, Peter Corp. acquired the identifiable net assets of Ella Corp. by paying cash of P1,500,000; issuing 50,000 ordinary shares with a market value of P60 per share. Peter paid the broker's fee of P25,000; cost if SEC registration of shares issued amounting to P2,000 and indirect cost of P5,000. The book values of assets of Peter and Ella are P15,200,000 and P2,500,000, respectively, and the book values of liability of Peter and Ella are P4,000,000 and P800,000. The book value reflects fair value of assets and liabilities except that the current asset of Peter is overvalued by P200,000 and non-current asset of Ella Corp is undervalued by P500,000. Peter Corp. has estimated P400,000 representing cost of exiting the activity of Ella Corp such as: cost of terminating employees and the cost of relocating terminated employees of Ella. The agreement also provides that Peter Corp shall pay cash on January 10, 20x1, equal 120% of the amount by which December 31, 20x1, earnings of…Satchel Inc. purchases 10,000 shares of its own previouslyissued $10 par common stock for $290,000. Assuming theshares are held in the treasury with intent to reissue,what effect does this transaction have on (a) net income,(b) total assets, (c) total paid-in capital, and (d) totalstockholders’ equity?The securities owned by Jane Company were held as a long-term investment. During the currentyear, the following transactions occurred:Jan. 1 Purchased 15,000 shares of ABC Company at P70 per share.May 1 Purchased 8,000 shares of XYZ Corporation for P660,000.Apr 1 Received a cash dividend of P6 per share from ABC Company.July 1 Received a share for a share dividend from XYZ Corporation.Aug 1 Purchased 10,000 shares of GHI Enterprises at P75 each.Oct 1 Received a cash dividend of P6 per share from ABC Company.Oct 31 XYZ Corporation offered shareholders rights to subscribe to one new share for every tenrights tendered at P25. At the time of issuance, the market value of the right is P4. Sharerights are not accounted for separately.Nov 15 Exercised the XYZ Corporation’s share rights.Dec. 1 Sold 10,000 shares of XYZ Corporation at P35 per share. Use the FIFO approach indetermining the cost of the shares sold.Dec. 31 The fair values of the portfolio is as follows:ABC Company – P73 per…
- BFAR Corporation issued 20,000 ordinary shares receiving land that costs P200,000 and has a fair value of P500,000. If the share capital has no par value but with stated value of P20. Compute the legal capital.JJJ Co. was incorporated on January 1, 20x1. The following were the transactions during the year: Total consideration from share issuances amounted to P2,000,000. · A land and building were acquired through a lump sum payment of P400,000. A mortgage amounting to P100,000 was assumed on the land and building. Total payments of P80,000 were made during the year on the %. mortgage assumed on the land and building, The payments are inclusive of interest amounting to P10,000. · Additional capital of P200,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. There is no accrued interest as of year-end. Dividends declared during the year but remained unpaid amounted to P60,000. • No other transactions during the year affected liabilities. • Retained earnings as of December 31, 20x1 is P120,000. How much is the profit for the year?vnt.2