On January 1, 2021, Blue Company purchased 20% of the outstanding ordinary shares of Yellow Company for  P 4,000,000. At the acquisition date, the carrying amounts of the identifiable assets and liabilities of the investee were equal to their fair values. The investor has a significant influence over the investee.  The journal entry on January 1, 2021 would be:

Q: 4-12. On January 1, 2020, Byron, Inc. purchased 30% of the outstanding ordinary shares of Pirates…

A: Journal entries are used by the companies, firms, NPO, etc. to keep a record of the transactions…

Q: Petro Ltd acquired 60% of Carlos Ltd's 500,000 R1 equity shares on 1st January 2019 for a…

A:

Q: Large Ltd owns 100% of the shares of Small Ltd. These shares were acquired on 1 July 2019 for $1…

A: Analysis of Profits of Small Ltd.  Particulars    Amount Balance of Retained  Earnings  400000…

Q: Save, a private limited company has acquired 100% of Kaye, a private limited company, on January 1,…

A: Calculation of Goodwill on date on acquisition 1 January, 2019: Particulars Amount Purchase…

Q: acquisition date, the acquirer could only determine a provisional fair value for the Plant. On March…

A: Cash 50000 Furniture & fittings  20000 Accounts receivable  5000 Plant 131000…

Q: Equity method balance in Phillips's Investment in Bearden, Inc., account as of December 31, 2022.…

A: Consolidation: A process in which many smaller companies get amalgamated through merger and…

Q: On January 1, 2021, PUP CAF acquired a 10% interest in an investee for P3,000,000. The investment…

A: Working note : 1 Computation of Net Investment Income    $ Share in net income (8000,000 x…

Q: On January 1, 2024, the Moody Company entered into a transaction for 100% of the outstanding common…

A: The amount to be recorded as an investment in a corporate entity to acquire 100% is based on the…

Q: On 1 July 2019, Brad Ltd acquired all of the assets and liabilities of Pitt Ltd. In exchange for…

A: We will do acquisition analysis by calculating Net assets and good will, Net assets is calculated…

Q: A Company acquired the assets and assumed the liabilities of B Inc. on June 30, 2022.  The…

A: Shareholders' equity reflects the true networth and the working culture of any organization or a…

Q: 11. On December 1, 2021, ABC Company acquired all the assets and liabilities of XYZ Inc. issuing…

A: Net assets means value of entity's total assets minus total liabilities. Here  Fair value of assets…

Q: On 1 July 2018 Cool Ltd purchased an 80% controlling interest in Sunny Ltd for a consideration of…

A: Correct option is C.26,300   The amount of net profit that Non controllable interest is entitled to…

Q: On July 1, 2019, Killearn Company acquired 124,000 of the outstanding shares of Shaun Company for…

A:

Q: Use the following to answer questions 8 through 10: On May 1, 2021, Jazzie Co. agreed to sell the…

A: SOLUTION-   WORKING NOTE- GAIN ON ASSET  SALE =  ($80 MILLION - $ 48 MILLION)…

Q: Required: a) Prepare an acquisition analysis for Trump Ltd's acquisition of the net assets of Bush…

A: Acquisition of the entire business can be defined as when one company takes over the entire business…

Q: On 1 January 2019, Company P purchased 80% of the equity of Company S. The following transactions…

A: The question is based on the concept of Business Accounting.

Q: On December 1, 2021, ABC Company acquired all the assets and liabilities of XYZ Inc. issuing 100,000…

A:

Q: On May 31, 2021 Armstrong paid $3,500,000 to acquire all of the common stock of Police Corp which…

A: Goodwill is an intangible asset. It is the value of company's brand name, solid customer base, good…

Q: On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for…

A: Answer are as follows:

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.