On July 1, 2021, ABC Co. Acquired 99% of the outstanding ordinary share capital of DEF Co for P990,000 cash. The remaining was held by a shareholder who was unwilling to sell the share. DEF's net assets had a book value of P950,000 and a fair market value of P50,000 more than the carrying value when it was acqured by ABC. The Non-controlling interest using the full goodwill method should be reported at 10,000 10,500 9,000 9,900
Q: On June 30, 2020, Cape Company purchased 25% of the outstanding ordinary shares of Bit Co. at a…
A: Under the fair value method, the investment is reported at the fair value of the market share of the…
Q: On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $2,037,280 in cash…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2020, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: of GHI Company, which it purchased for P42,000 above underlying book value of P604,800 on December…
A: A Controlling interest of Nits Enterprise 60% B Non controlling Interest (100% - 60%) 40% C…
Q: On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for…
A: In the given question, we are provided with the information of Megan, INC. which has acquired a 15%…
Q: P Co. acquired 80% of the 300,000 $1 equity shares of S Co. on 1 April 2021 when the retained…
A: A business combination is a deal or circumstance when one company (the acquirer) takes over control…
Q: STI Co. acquired 55% of the outstanding shares of UE Inc on August 1, 2021 at a total cost of…
A: Non Controlling Interest For the calculation of non controlling interest the minority interest which…
Q: On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination…
A: When Non controlling interest is measured at fair value them the resulting goodwill or gain on…
Q: On July 1, 2021, ABC Co. Acquired 99% of the outstanding ordinary share capital of DEF Co for…
A: The question is related to Busniess combinations Required Non Controlling Interest by using full…
Q: On January 1,2020, ABC Company acquired 80 percent of DEF Company's Common Stock for P400,000 cash.…
A: As per Bartleby policy, only the first three interlinked parts are answered. If you want any…
Q: On January 2, 2021, X Co. acquired all the ordinary share of Y Co. for P2,060,000. On that date, Y…
A: Goodwill is calculated when Purchase consideration paid to acquire a company (acquiree) is greater…
Q: Gino Company acquired 30% of ABC Corporations share for P8,000,000 on July 1, 2020. ABC…
A: 1. On 01.07.2020, Eddie company acquired shares of ABC company = 30% Purchase consideration =…
Q: On July 1, 2019, GAR Company acquired 800,000 shares of FAR Company at a price of P13 per share. GAR…
A: Total number of shares outstanding of FAR Company = P5,000,000P5 per share = 1,000,000 shares % of…
Q: On July 1, 2018, Manama Co. acquired 99% of the outstanding ordinary share capital of Amwaj Co. for…
A: Non controlling interest using the full goodwill method is calculated by multiplying the holding of…
Q: On January 10, 2020, Fey Co. acquired a 40% interest in Hana Co. for P4,800,000. Fey already held a…
A: When a company acquires another company, it pays the seller company, and in return, the buyer…
Q: On January 1, 2021, Grey Co. Acquires 80% of the outstanding voting shares of Cristine Corp.…
A: Goodwill refers to the extra amount of consideration paid over the fair value of the net assets of…
Q: On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination…
A: When the fair value of the non-controlling interest is not given then for the purpose of computing…
Q: On June 30, 2020, Pearl Co. acquired 80% of the outstanding shares of Scott Co. for P3,125,000. On…
A: The differential between the amount paid and the fair value of the assets bought and liabilities…
Q: ABC Corp owns 60% of the outstanding shares of GHI Company, which itpurchased for P42,000 above…
A: Solution:
Q: On January 2, 2020, Megan, INC. acquired a 15% interest in Kiyosaki Corp. by paying P8, 000, 000 for…
A: Investment can be done in : Equity mutual funds Debt mutual funds Public Provident Fund Bank fixed…
Q: On July 1, 2020, Bar Inc. purchased 50,000 of Tell Inc.’s preference shares in exchange of a tract…
A: As per IFRS 9, Financial instruments, the financial asset classified as a financial asset at fair…
Q: On January 1, 2020, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne…
A: Journal entry is the process of recording the business transactions in the accounting books for the…
Q: On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination…
A: The goodwill (or) gain on bargain purchase will be considered as full goodwill (or) Full gain on…
Q: PRT acquired 100% of SUB's ordinary shares on 1 January 2019 for R1,136,000 when SUB's retained…
A: (I) Goodwill in business is created when PRT (acquiring entity) purchases SUB (another entity) for…
Q: On January 1, 2020, Doone Corporation acquired 80 percent of the outstanding voting stock of Rockne…
A:
Q: On January 2, 2021, ABC Co. acquired 80% of XYZ Co. ordinary shares for P810,000. An amount of…
A: The net consolidated profit to be reported by ABC Co. would be adjusted with the impairment loss,…
Q: Victoria Corp acquired 80 per cent of the share capital of Whitehorse Corp on 1 July 2019. As at the…
A: Goodwill: In consolidation transactions, goodwill arises when the fair value of the entity acquired…
Q: 6. On December 31, 2019, Stefan company purchased for 30 per share all 300,000 of Elena company’s…
A: It is pertinent to note that identifiable net asset need to be valued at fair value on the date of…
Q: What is the noncontrolling interest's share of Rockne's 2021 income? Prepare Doone's 2021…
A: The term acquisition means when a company purchased the majority share of the other company then…
Q: Gino Company acquired 30% of ABC Corporations share for P8,000,000 on July 1, 2020. ABC…
A: As per the equity method, the investment is recognized at cost and thereafter the value changes as…
Q: acquired 80% of the issued shares of Sinatra Ltd for $250,000. At that date, Sinatra Ltd's equity…
A: Particulars Amount ($) Identifiable Net Assets (Fair Value) 2,00,000 Less- Non controlling…
Q: ration acquired 80 percent of the outstanding voting stock of Rockne Company for $448,000…
A: A non-controlling interest, is an ownership position in which a shareholder owns less than 50% of…
Q: On January 2, 2021. Z corporation acquired 75% of the outstanding ordinary shares of Y Company for…
A: Net assets are also referred to as stockholder’s equity of the business which is computed after…
Q: On 1 July 2021, King Ltd acquired all the share capital of Queen Ltd for $1,800,000, and on that…
A: The following table shows the calculation of goodwill on acquisition: Particulars Amount Amount…
Q: Parent Ltd paid $237,000 for 90% of the shares of Subsidiary Ltd on 1 July 2020. All identifiable…
A: Calculation of Goodwill Investment=$237,000 Add:Fair value of NCI=$25,000 Less: Identifiable net…
On July 1, 2021, ABC Co. Acquired 99% of the outstanding ordinary share capital of DEF Co for P990,000 cash. The remaining was held by a shareholder who was unwilling to sell the share. DEF's net assets had a book value of P950,000 and a fair market value of P50,000 more than the carrying value when it was acqured by ABC. The Non-controlling interest using the full
10,000
10,500
9,000
9,900
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination resulted to a gain on bargain purchase of P200,000. The consideration paid was exactly the fair value for the 60% outstanding stocks, and the fair value of the non-controlling interest is not given. Fair value of the net assets of YSAE amounted to P1,000,000 on that date. How much is the gain on acquisition attributable to SUNOB? a. 600,000 b. 120,000 c. Zero d. 200,000On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination resulted to a gain on bargain purchase of P200,000. The consideration paid was exactly the fair value for the 60% outstanding stocks, and the fair value of the non-controlling interest is not given. Fair value of the net assets of YSAE amounted to P1,000,000 on that date. How much is the gain on acquisition attributable to SUNOB? Group of answer choices a.600,000 b.120,000 c.Zero d.200,000On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination resulted to a gain on bargain purchase of P200,000. The consideration paid was exactly the fair value for the 60% outstanding stocks, and the fair value of the non-controlling interest is not given. Fair value of the net assets of YSAE amounted to P1,000,000 on that date. How much is the gain on acquisition attributable to SUNOB? Zero 600,000 200,000 120,000
- On January 2, 2021, ABC Co. acquired 80% of XYZ Co. ordinary shares for P810,000. An amount of P37,500 of the excess is attributable to goodwill and the balance to a depreciable assets with an economic life of ten years. NCI is measured at fair value on the date of acquisition. On the date of acquisition, shareholder's equity accounts of the two entities were as follows: АВС Ordinary Shares - 1,312,500 Retained Earnings - 1,950,000 XYZ Ordinary Shares - 300,000 Retained Earnings - 525,000 On December 31, 2021, XYZ reported net income of 131,250 and paid dividends of P172,500. Goodwill have been impaired and should be reported at P7,500 on December 31, 2021. #6. What is the non-controlling interest in profit of XYZ on December 31, 2021? Select the correct response: 26,250.00 17,250.00 23,250.00 23,437.50The Non-controlling interest using the full goodwill method should be reported at: A. 10,000 B. 9,900 C. 10,500 D. 9,000Victoria Corp acquired 80 per cent of the share capital of Whitehorse Corp on 1 July 2019. As at the date of acquisition, Whitehorse’s retained earnings was $40,000. On this date, the fair value of the 20% non-controlling interest in Whitehorse was $25,000. Ignore the tax rate. The statements of the financial position of Victoria Corp and Whitehorse Corp as at 30 June 2020 are as follows: Victoria Corp ($) Whitehorse Corp ($) Current assets 320,000 168,000 Non-current assets: Property, plant and equipment 190,000 36,000 Investment (in Whitehorse) 100,000 - 290,000 36,000 610,000 204,000 Current liabilities 270,000 94,000 Shareholders’ equity: Share capital…
- On July 1, 2018, Manama Co. acquired 99% of the outstanding ordinary share capital of Amwaj Co. for $990,000. The remaining 1% was held by a shareholder who was unwilling to sell the share. Amwaj Co.'s net assets had a book value of $950,000 and a fair market value of $50,000 more than the carrying value when it was acquired by Manama Co. Determine the Non-Controlling Interest using the full goodwill method.On January 10, 2020, Fey Co. acquired a 40% interest in Hana Co. for P4,800,000. Fey already held a 25% interest which had been acquired for P1,600,000 but which was valued at P1,920,000 at January 10, 2020. The fair value of non-controlling interest(NCI) at January 10, 2018 was P2,400,000, and the fair value of the identifiable net assets of Hana Co. was P8,400,000.How much is the goodwill to be recognized as a result of business combination?On January 1,2020, ABC Company acquired 80 percent of DEF Company's Common Stock for P400,000 cash. At that date, DEF reported common stock outstanding of P300,000 and retained earnings of P 75,000, and the fair value of non-controlling interest was P80,000. The book values and fair values of DEF's assets and liabilities were equal, except for 2 items. The first item is building which had a fair value of P50,000 lower than book value and an 5-year remaining life and Inventory that is undervalued by P50,000. The inventory was sold during 2020. DEF reported the following data for 2020 and 2021 Comprehensive Income Dividends Paid P 600,000 800,000 Year Net Income 2020 P 10,000 P 500,000 700,000 2021 20,000 ABC reported net income (Including dividend income from investment in DEF ) of P1,000,000 and paid dividends of P500,000 for both the years 1. How much is the goodwill / gain on bargain purchase ? 2. What is the amount of consolidated net income reported for 2020 ? 3. Using the same…
- Gino Company acquired 30% of ABC Corporations share for P8,000,000 on July 1, 2020. ABCCorporation’s identifiable net assets on the date of acquisition are P20,000,000. Gino believes thatthe investee has known goodwill and the fair value of the corporation's net assets is the same as itscarrying amount except for the following: a. Equipment is undervalued by P2,000,000.b. Inventory’s fair value is P2,000,000 greater than its carrying amount. The equipment has a remaining life of 4 years and depreciated using the straight-line method. At theend of 2020, all inventories at the acquisition date are entirely sold.On November 30, ABC Corporation pays a P2,000,000 dividend to its shareholders. During the year,ABC Corporation reported a net income of P5,000,000, 40% of these were earned in the first half ofthe year. The fair value of ABC Corporation's shares held by Gino at the end of 2020 is P8,250,000.Requirements: 1. Suppose that on November 30, 2020, ABC Corporation revalued its Land that…Gino Company acquired 30% of ABC Corporations share for P8,000,000 on July 1, 2020. ABCCorporation’s identifiable net assets on the date of acquisition are P20,000,000. Gino believes thatthe investee has known goodwill and the fair value of the corporation's net assets is the same as itscarrying amount except for the following: a. Equipment is undervalued by P2,000,000.b. Inventory’s fair value is P2,000,000 greater than its carrying amount. The equipment has a remaining life of 4 years and depreciated using the straight-line method. At theend of 2020, all inventories at the acquisition date are entirely sold.On November 30, ABC Corporation pays a P2,000,000 dividend to its shareholders. During the year,ABC Corporation reported a net income of P5,000,000, 40% of these were earned in the first half ofthe year. The fair value of ABC Corporation's shares held by Gino at the end of 2020 is P8,250,000.Requirements:1. Prepare the necessary journal entries to record the above transactions.2.…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:
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)