Choose the answerChoices:a. 6,600,000; 1,200,000; 8,900,000b. 0; 1,400,000; 8,00,000c. 1,400,000; 1,400,000; 8,900,000d. 1,400,000; 1,000,000; 8,320,000 On January 1, 20x1, ABET Co. purchased 25% interest in the ordinary shares ofENCOURAGE, Inc. for P8,000,000. ENCOURAGE's assets and liabilities approximatetheir fair values except for inventories with carrying amount of $2,000,000 and fairvalue of $400,000 and depreciable asset with carrying amount of $12,000,000 andfair value of $20,000,000. The remaining useful life of the depreciable asset is 10years. ENCOURAGE's net assets have a book value of $20,000,000. ENCOURAGEreported $4,800,000 profit in 20x1 and declared and paid dividends of $2,000,000On December 31, 20x1. How much are the (1) implied goodwill on the investment;(2) sha in the associate's profit in 20x1; and (3) carrying amount of the investmenton Dec. 31, 20x1?

This question deals with the concept of calculating carrying value of investment and share in profit…

On January 1, 20x1, ABET Co. purchased 25% interest in the ordinary shares of ENCOURAGE, Inc. for P8,000,000. ENCOURAGE's assets and liabilities approximate their fair values except for inventories with carrying amount of P2,000,000 and fair value of P400,000 and depreciable asset with carrying amount of P12,000,000 and fair value of P20,000,000. The remaining useful life of the depreciable asset is 10 years. ENCOURAGE's net assets have a book value of P20,000,000. ENCOURAGE reported P4,800,000 profit in 20x1 and declared and paid dividends of P2,000,000 On December 31, 20x1. How much are the (1) implied goodwill on the investment; (2) share in the associate's profit in 20x1; and (3) carrying amount of the investment on Dec. 31, 20x1?

On January 1, 20x1, ABET Co. purchased 25% interest in the ordinary shares of ENCOURAGE, Inc. for P8,000,000. ENCOURAGE's assets and liabilities approximate their fair values except for inventories with carrying amount of P2,000,000 and fair value of P400,000 and depreciable asset with carrying amount of P12,000,000 and fair value of P20,000,000. The remaining useful life of the depreciable asset is 10 years. ENCOURAGE's net assets have a book value of P20,000,000. ENCOURAGE reported P4,800,000 profit in 20x1 and declared and paid dividends of P2,000,000 On December 31, 20x1. How much are the (1) implied goodwill on the investment; (2) share in the associate's profit in 20x1; and (3) carrying amount of the investment on Dec. 31, 20x1?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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KINGDOM OF SAUDI ARABLA MINISTRY OF HIGHER EDUCATION 4 Imam Muhammad thn Sand hlamie Universio College of Ecenomies and Adminirative Selenees Department of inance and Investment Acedemic year1442-144 Level i four Caurne Princiuler af finance and investment-FINI02 Home exercises 1 All results must be numerie and rounded to the nearest hundredth When you round off to the hundredih digit, you look at only the thousandth digit Le you focus only on the next digit. Say x- 8678.4546 When you round it to the nearest hundredth digit, you get - 8678.45 Say z= 8678.4556 When you round it to the nearest hundredth digit. you get z 8678.46 Question1: You are given the following information about a corporation. Statement income 2019 2020 Sales 250 300 Operating costs Depreciations Net Working Capital Capital Spending If we assume the firm faces a 20% tax rate, calculate the free cash flow (FCF) for the year 2020. 180 200 45 20 50 25 45 50 Question2: You are considering an investment in a new project.…
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