On 1/1/2020 P Company acquired 80% of S Company for 200000 JD cash. The book value of equity for S is 195000 JD. The following table shows differences between FV and BV: Difference between FV & BV Inventory 25000 Equipment 60000 the remaining balance of differences will be:

On 1/1/2020 P Company acquired 80% of S Company for 200000 JD cash. The book value of equity for S is 195000 JD. The following table shows differences between FV and BV: Difference between FV & BV Inventory 25000 Equipment 60000 the remaining balance of differences will be:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On 1/5/2015 , K-mart. Co acquired 90% shares of the outstanding common shares of Tesco. for $360000…

Q: Beach Haven Co. purchases 30% of the stock of Ship Bottom, Inc.on January 1.2021. The book values of…

A: Beach Haven Co. purchases 30% of the stock of Ship Bottom, Inc. on Jan 1, 2021. Beach Haven Co. take…

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: In 2022, ABC Company sold inventory costing P150,000 to its 80%-owned subsidiary for P210,000. A…

A: Consolidated Financial statements present assets, liabilities, equities , income , expenses etc of…

Q: 80%-owned subsidiary for P210,000. A portion of this was resold by the subsidiary in 2022 for…

A: Consolidated balance sheet presents the financial position of the company in an affiliated group…

Q: The following are several figures reported for Allister and Barone as of December 31, 2021:…

A: A degree of confidence regarding the correctness and dependability of the reported financial…

Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible…

A: SOLUTION- CONSOLIDATED ASSETS ARE DETERMINED BY ADDING THE ASSETS OF PARENT AND SUBSIDIARY COMPANY…

Q: What is the double entry when: During 20x0, Subsea Co will sell inventory which it bought for…

A: An unrealised inter-company profit exists only when there is a sale of goods by one company in the…

Q: Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method of accounting…

A: Unrealized profit, December 31, 2020 = [($20,000 / $75,000) x $15,000] x 40% = $1,600

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: Dysabel Corp. owns 80% of Marina, Inc.'s common stock. During 2020, Dysabel sold Marina P337,500 of…

A: Following is the answer to the given question

Q: P Corporation owns 90% of the common stock of S Company. During 2013, S Company made intercompany…

Q: ABC Corporation acquired 80 percent of XYZ Corporation on August 1 for P500,000. On that date, XYZ…

A: NCI AS ON DATE OF ACQUISITION ( USING FAIR VALUE METHOD) = 500000/ 80% * 20% = P125,000 ALTERNATE…

Q: entory costing to Its 80%-owned subsidiary for P210,000. A portion of this was resold by the…

A: 1. 225,000 2. 4,658,000 3. 7,240,000 1. Record upon sale to subsidiary Debit Credit Parent…

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

A: Purchase acquisition accounting is a method that is used for recording the purchase of a company on…

Q: pany tota vill and noncontrolling interests amounts?

A: Goodwill is an important component of financial analysis, acquisitions and mergers, and determining…

Q: SG Company purchased 35% interest in Popsters Company for P5,600,000 on July 15, 2020. SG already…

A: SG company initially purchase 25% share holding in popsters company Again in current year it…

Q: Inventory Sales Investment income Cost of goods sold Operating expenses eporte TOT All and Allister…

A: A consolidated financial statement is a combination of a financial statement of a parent company and…

Q: On 1/1/2021 P company acquired 90% of S company and 60% of R company. Accounts payable balance for P…

A: Here P company is parent entity of S company and R company as it holds substantial shares of…

Q: Compute NCl in income.

A: NCI- The non-controlling interest can be defined as the interest income of the acquired or the…

Q: Car Inc. wants to purchase the net assets of Paint Inc. for purposes of horizontal consolidation and…

A: Journal entries (JE) refers to the original books of accounts and it records the daily transaction…

Q: Compute for the Profit attributable to Equity Holders of Parent or Controlling Interest in Net…

A: Consolidation is termed as merger of two or more entities where one company acquire more than 50% of…

Q: e following are several figures reported for Poyer and Sutter as Items Inventory Sales Investment…

A: A consolidated financial statement is a combination of financial statement of a parent company and…

Q: Soprano Co. purchased a 90% interest in the Tenor Co. on January 1, 2020 for P600,000. Any excess of…

A: The objective of the question is to calculate the cost of equity conversion to bring the investment…

Q: On January 1, 2020, P Company acquired 80% of S Company for P2,000,000. The fair value of…

A: The financial statements of the company are prepared to check the financial health of the Company on…

Q: Genie Inc. is thinking about undertaking vertical integration by taking over the functions performed…

A: Journal entry It is a record of a business transactions in the business books. In double-entry…

Q: Washington Corp. acquired 70% of the voting common stock of George Co. at the time when George…

A: The consolidated COGS will be computed as follows

Q: The following are several figures reported for Allister and Barone as of December 31, 2021: Allister…

A: Net Income is the total amount of money a company earns after deducting all its expenses and taxes…

Q: In 1/1/2024 Smart co. with owner equity (ordinary shares 1,500,0000, premium 2,500,000 and retained…

A: Detailed Journal Entries for Seesaw Co.'s Investment in MMI1. January 1, 2024:• Debit: Investment…

Q: Phelps Co. uses the sophisticated equity method to account for the 80% investment in its subsidiary…

A: Consolidated net income is created by adding the net revenue of the holding company, which is…

Q: a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd,…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Discuss the relevant accounting treatments Kof-Let Berhad acquired 20% and 55% of equity interests…

A: Consolidation is the process of accounting where the parent company reports the financial statement…

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

On 1/1/2020 P Company acquired 80% of S Company for 200000 JD cash. The book value of equity for S is 195000 JD. The
following table shows differences between FV and BV:
Difference between
FV & BV
Inventory
25000
Equipment
60000
the remaining balance of differences will be:
Select one:
a. 30000 bargain gain
O b. 30000 goodwill
Oc.0
O d. None of the given answers

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 3

VIEW

Step by step

Solved in 3 steps with 3 images

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

Following are several figures reported for Allister and Barone as of December 31, 2021: Allister Barone Inventory $ 500,000 $300,000 Sales 1,000,000 800,000 Investment income not given Cost of goods sold 500,000 400,000 Operating expenses 230,000 300,000 Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary’s fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $78,000 that was unrecorded on its accounting records and had a 4-year remaining life. Any remaining excess fair value over Barone’s book value was attributed to goodwill. During 2021, Barone sells inventory costing $130,000 to Allister for $180,000. Of this amount, 10 percent remains unsold in Allister’s warehouse at year-end. Required: Determine balances for the following items that would appear on Allister’s consolidated financial statements for 2021: Inventory Sales…
The following are several figures reported for Allister and Barone as of December 31, 2021: Allister Inventory Sales Investment income Cost of goods sold Operating expenses $ 620,000 $ Barone 420,000 1,240,000 1,040,000 not given 620,000 290,000 520,000 360,000 Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $80,000 that was unrecorded on its accounting records and had a four-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $142,000 to Allister for $204,000. Of this amount, 10 percent remains unsold in Allister's warehouse at year- end. Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021: Inventory Sales Cost of goods sold Operating expenses Net income attributable to…
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
vnt
Pizza Factory Company owns 100% controlling interest in its long held subsidiary; The Sugar Company and they use the Equity Method. Pizza Factor sells inventory to Sugar Company for a 25% Gross Profit. During 2019 and 2020, intercompany sales amounted to: Intercompany Sales: 2019 840,000 2020 930,000 At the end of 2019, Sugar Company had one-fifth of the goods purchased that year from Pizza Factory in its ending inventory. At the end of 2020, Sugar Company's 2020 ending inventory contained one-fourth of that year’s purchases from Pizza Factory. There were no intercompany sales prior to 2019. Prepare in general journal form all entries necessary on the consolidated statements…
At the time of acquisition X & Y Co., stock issue expected cost expenses OMR 48,000. Finally, acquisition cost was OMR 64,000. How much will record in the income statement. Select one: a. OMR 48,000 b. OMR 64,000 c. OMR 16,000 d. OMR 112,000
Please do not give image format
BUSINESS COMBINATION Answer it with solution:
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. * 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 Common Stock (300,000) (10,000) (450,000) (350,000) (300,000) Retained Earnings Sales Your answer