Entity P owns 70,000 shares of Entity S 100,000 shares outstanding. CDecember 31, 2022 in Entity P's consolidated financial statements, tOn January 1, 2023, Entity P decides to sell 50,000 shares in Entity S tosthird party in exchange for cash of P800,000. As a result of this transactioncarrying value of Entity S net assets is P1,000,000 and the carrying vEntity P losses control of Entity S but retains 20% interest, valuedinterest's share of the accumulated other comprehensiveHow much is the gain or loss on disposal of Entity P's share?Onthevalueof non-controlling interest in subsidiary (including the non-ComuP300,000.income)P150,000 on that date.How much is the gain or loss on disposal of Entity P's share?

As per PFRS 10, when the parent company sale partial interest in a subsidiary and loss control over…

of non-controlling interest in subsidiary (including the non-controlli Entity P owns 70,000 shares of Entity S 100,000 shares outstanding. " December 31, 2022 in Entity P's consolidated financial statements, t carrying value of Entity S net assets is P1,000,000 and the carrying v interest's share of the accumulated other comprehensive income) On January 1, 2023, Entity P decides to sell 50,000 shares in Entity Sto third party in exchange for cash of P800,000. As a result of this transactio Entity P losses control of Entity S but retains 20% interest, valued carrying value of Entity S net assets is P1.000.000 and the carryine di val P300,000. P150,000 on that date. How much is the gain or loss on disposal of Entity P's share

of non-controlling interest in subsidiary (including the non-controlli Entity P owns 70,000 shares of Entity S 100,000 shares outstanding. " December 31, 2022 in Entity P's consolidated financial statements, t carrying value of Entity S net assets is P1,000,000 and the carrying v interest's share of the accumulated other comprehensive income) On January 1, 2023, Entity P decides to sell 50,000 shares in Entity Sto third party in exchange for cash of P800,000. As a result of this transactio Entity P losses control of Entity S but retains 20% interest, valued carrying value of Entity S net assets is P1.000.000 and the carryine di val P300,000. P150,000 on that date. How much is the gain or loss on disposal of Entity P's share

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter6: Corporations: Redemptions And Liquidations

Section: Chapter Questions

Problem 33CE

See similar textbooks

Similar questions

On July 10, 2021, Romantic Co. acquired 25,000 shares of Baboy Co. for P200,000. Romantic Co does not have significant influence over Baboy Co. The entity also spent additional P15,000 transaction cost. Romantic Co. entity made an irrevocable election of the instrument to be classified as FVOCI. On October 15, 2021, the Romantic Co. sold 15,000 shares for P10.5/share. At year- end, Baboy Co.'s shares were selling at P12 per share. How much is the total amount to be recognized as other comprehensive income in the statement of comprehensive income for the year ?
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…
On July 1, 2019, GAR Company acquired 800,000 shares of FAR Company at a price of P13 per share. GAR estimated that the price paid include P1.50 premium in order to gain control over FAR Company. On this date, the fair values of FAR Company’s identifiable assets and liabilities and their carrying values are given below: Book Value Fair ValueCurrent assets P2,000,000 P2,000,000Property, plant and equipment 9,000,000 11,000,000Liabilities P3,000,000 Ordinary shares, P5 par 5,000,000 Retained earnings 3,000,000 Determine the amount of goodwill assuming the non-controlling interest is measured at the proportionate share in the net assets:
Mani Ltd owns all the shares in Hani Ltd. On 1 March 2021, Mani Ltd sold inventories that cost $50,000 to Hani Lid for $SE.000. At the end of the financial year, beingjune 24 quarter of the inventories were sold by Hani Ltd to entities external to the group. In relation to this intragroup transaction, which of the following statement is correct? O Consolidated sales to be eliminated by $50,000 O Consolidated sales to be added by $58,000 O Consolidated profit to be oliminated by $6,000 O Consolidated profit to be eliminated by $8,000
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.
P Company acquired all the outstanding shares of S Company by issuing 50,000 shares with a par value of P100 on July 1, 2021. P's ordinary shares were selling at P102 per share at the date of acquisition. On the same date, the net asset of S had a carrying value and fair value of P3,800,000 and P4,500,000 respectively. Out of pocket expenses of the business combination were as follows (see image below). How much is the amount charged to expense? Legal fees for contract of business combination Audit fees for SEC registration of share issue Brokerage fee Accountant fee for pre-acquisition audit Printing and registration of stock certificates Other direct costs of acquisition 41,200 50,000 22,500 35,000 10,000 16,800 General administrative costs 25,000 12,100 Listing fees in issuing new shares
Ugly Corp. issued 50,000 shares of P100 par ordinary share for all outstanding shares of Dolls Company in a business combination consummated in July 1, 2019. Ugly’s ordinary shares was selling at P102 per share at the time of the consummation of the combination. Dolls’ net asset on the date of acquisition has a carrying amount of P3,800,000. Out of pocket expenses of the combination were as follows:Legal fees P50,000Finder’s fees 25,000CPA audit fees 50,000Printing of stock certificates 65,000Determine the amount charged to expense:
Visu
DEF company acquired the assets and assumed liabilities of GHI Company on January 1, 2022 by paying P3,000,000 and issuing its own ordinary shares. The comparison of the acquirer’s balance sheet before and after business combination transaction is as follows: Balance sheet before Acquisition Balance Sheet after Acquisition Total Assets 13,545,000 17,595,000 Total Liabilities 3,760,000 ? Total SHE 9,785,000 ? The fair value of the identifiable net asset of the acquiree is P4,835,000 and the book value of acquiree’s liabilities amounting to P1,300,000 is lower compared to its fair value by P350,000. DEF company paid acquisition related costs amounting to P50,000. What is the fair market value of the ordinary shares issued by the acquirer? a. 2,500,000 b. 2,400,000 c. 2,480,000 d. 2,450,000
P Co. acquired 80% of the 300,000 $1 equity shares of S Co. on 1 April 2021 when the retained earnings of S were $150,000. Consideration comprised X1 by cash, and X2 payable on 31 March 2022. The book values of S's net assets at acquisition date were equal to their fair values except a loan which had a book value of $400,000 and a fair value of $500,000. P measures non-controlling interest at fair value, based on share price. The market value of S's shares on 1 April 2021 was $1.5. P has a cost on capital of 10%. Required: 1/Provide relevant X1, X2 so that the goodwill at the acquisition date is positive. 2/Calculate the goodwill arising on acquisition.
P Company acquired the net assets of S Company by issuing 150,000 shares of its P10 par value ordinary share capital on July 1, 2021. The market value of the shares was P12. P also paid direct costs of P100,000 which includes P15,000 cost of issuing and registering new shares. The financial statements of P and S were (see image below). The fair value and book value of S Company's identifiable assets and liabilities were the same except Equipment which was undervalued by P250.000 and lInventory which was overvalued by P100,000. Assuming that P Company is an SME. How much is the goodwill/gain on bargain purchase? " P S Cash Inventory Equipment Other Assets 150,000 320,000 4,350,000 500,000 5,320,000 120,000 400,000 1,750,000 500,000 2,770,000 Total Accounts Payable Notes Payable Share Capital, P10 par 1,000,000 1,300,000 2,000,000 1,000,000 20,000 5,320,000 300,000 660,000 500,000 100,000 1,210,000 2,770,000 Share Premium Retained Earnings Total
BENI Co.