SMARTOOC, 44 | 3:36LazTENGIAGLOBEAUD5 IConsolidated1.On January 2, 2009. DR. STRANGE CORP. acquired all the outstanding common stockof ATTY. WEIRD INC. for P2,060,000. On that date, ATTY. WEIRD INC. reported thefollowing stockholders' equity account balances: Common Stock P800,000, AdditionalPaid in Capital P620,000, Retained Earnings P300,000.The assets and liabilities of ATTY. WEIRD INC. had book values that were approximatelyequal to its market values, except building that was undervalued by P400,000, andequipment that was overvalued by PI20,000. The building has an estimated, life of 20years and equipment with 5 years useful life. Prior to acquisition, ATTY. WEIRD INC. hasunimpaired goodwill in the amount of P10,000. What is the amount of goodwill to bereported in the consolidated balance sheet at the date of acquisition?А.40,00060,000С.50,00070,000В.D.On January 2, 2009, QUICKSILVER CORP. acquired all the outstanding common stockof FASTGOLD CORP. for P412,000 cash. The book value of FASTGOLD CORP.'s net assetsamounted to P280,000. On that date, the assets and liabilities of FASTGOLD CORP. hadbook value that were approximately equal to their respective market values, exceptbuilding with useful life of 10 years and was undervalued by P80,000; and equipmentwith useful life of 5 years and was overvalued by P20,000.2.For the year 2009, QUICKSILVER CORP. reported net income from own operations inthe amount of P224,000, while FASTGOLD CORP reported P60,000 net income from ownoperations. QUICKSILVER CORP. accounts its investment in FASTGOLD CORP. under thecost method. What is the amount of net income in the consolidated income statementfor 2009?C.284,000272,000А.288,000280,000В.D.Use the following information in answering the next item(s):On January 1, 2020, HULK CORP. acquired 70% of outstanding ordinary shares of HALLINC. at a price of P210,000. On the same date, the net assets of HALL INC. werereported at P260,000. On January 1, 2020 HULK reported retained earnings ofP2,000,000 while HALL reported retained earnings of P200,000.All of the assets and liabilities of HALL are fairly valued except machinery which isundervalued by P80,000 and in inventory which is overvalued by P10,000. The saidmachinery has a remaining useful life of four years while 40% of the said inventoryremained unsold at the end of 2020.For the year ended December 31, 2020, HULK reported net income of P1,000000 anddeclared dividends of P150,000 in the separate financial statements while HALL reportednet income of P150,000 and declared dividends of P20,000 in the separate financialstatements.HULK accounted the investment in HALL using cost method in the separate financialstatements.3.What is the non-controlling interest in net assets on December 31, 2020?А.P124,800P130,200P126,000P133,800с.В.D.4.What is the consolidated net income attributable to parent shareholders for the yearended December 31, 2020?P1,102,200P1,162,200P1,141,200P1,095,200A.С.В.D.5.What is the amount of consolidated retained earnings on December 31, 2020?А.P3,012,200P2,991,200P2,952,200P2,945,200С.В.D.Use the following information in answering the next item(s):On January 2, 2009, THANOS CORP. acquired all the outstanding common stock ofTHANK CORP. for P400,000, when the book value of THANK CORP.'s net assetsamounted to P300,000.THANOS CORP. uses the cost method to account for this investment in S THANK CORP.The selected accounts were taken from the financial records of the two companies as ofDecember 31, 2009 (all depreciable assets have useful life of 10 years for the twocompanies):THANK CORP.THANOS CORP.100,0005,250,000BVMV30,000290,00035,000280,00010,000InventoryProperty, plant & equipmentPatentWhat amount of property, plant and equipment should be shown in the consolidatedbalance sheet at December 31, 2009?А.6.5,250,0005,530,000С.5,529,0005,531,000В.D.What amount of inventory should be shown in the consolidated balance sheet atDecember 31, 2009?100,000134,5007.С.130,000135,000А.В.D.Use the following information in answering the next item(s):IRON MAN CORP. acquired 80% of RUST CORP.'s outstanding shares. The statementsof financial position of both entities immediately after the acquisition are shown below:IRON MAN CORP.RUST CORP.signedInvestment in subsidiary (at cost)430,0001,570,0002,000,000Other assets750,000750,000AssetsLiabilitiesOrdinary share capitalRetained earningsLiabilities and Stockholders' equityAt the date of purchase, the fair value of RUST's assets was P50,000 more than theaggregate carrying amounts. Non-controlling interest is measured under theproportionate share method.750,0001,000,000250,0002,000,000400,000310,00040,000750,0008.How much is the goodwill in the consolidated balance sheet prepared immediately afterthe acquisition?C.110,000120,000140,000160,000А.В.D.9.In the consolidated balance sheet prepared immediately after the acquisition, theconsolidated total assets should amount to:2,910,0002,480,0002,430,0002,370,000А.С.В.D.Page10. In the consolidated balance sheet prepared immediately arter the acquisition, the equityattributable to the owners of the parent should amount to:

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On January 2, 2009. DR. STRANGE CORP. acquired all the outstanding common stock of ATTY. WEIRD INC. for P2,060,000. On that date, ATTY. WEIRD INC. reported the following stockholders' equity account balances: Common Stock P800,000, Additional Paid in Capital P620,000, Retained Earnings P300,000. The assets and liabilities of ATTY. WEIRD INC. had book values that were approximately equal to its market values, except building that was undervalued by P400,000, and equipment that was overvalued by PI20,000. The building has an estimated, life of 20 years and equipment with 5 years useful life. Prior to acquisition, ATTY. WEIRD INC. has unimpaired goodwill in the amount of P10,000. What is the amount of goodwill to be reported in the consolidated balance sheet at the date of acquisition? 40,000 60,000 50,000 70,000 А. С. В. D.

On January 2, 2009. DR. STRANGE CORP. acquired all the outstanding common stock of ATTY. WEIRD INC. for P2,060,000. On that date, ATTY. WEIRD INC. reported the following stockholders' equity account balances: Common Stock P800,000, Additional Paid in Capital P620,000, Retained Earnings P300,000. The assets and liabilities of ATTY. WEIRD INC. had book values that were approximately equal to its market values, except building that was undervalued by P400,000, and equipment that was overvalued by PI20,000. The building has an estimated, life of 20 years and equipment with 5 years useful life. Prior to acquisition, ATTY. WEIRD INC. has unimpaired goodwill in the amount of P10,000. What is the amount of goodwill to be reported in the consolidated balance sheet at the date of acquisition? 40,000 60,000 50,000 70,000 А. С. В. D.

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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