On May 1, 2021, Taurus Inc acquired most of the outstanding shares of Glock Co for cash. The incomplete working paperelimination entries on that date for the consolidated statement of financial position of Taurus Inc and its subsidiary areshown below:Stockholders' equity-Glock2,437,500Investment in Glock1,584,375Non-controlling interest853,125Inventories62,500Equipment312,500Patent61,250Goodwill?Investment in Glock468,750Non-controlling interestThe purchase price of Taurus Inc included a control premium of P68,750.Determine the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 2021 ifthe non-controlling interest is assumed to be measured at fair value.

On May 1, 2021, Taurus Inc acquired most of the outstanding shares of Glock Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Taurus Inc and its subsidiary are shown below: Stockholders' equity-Glock 2,437,500 Investment in Glock 1,584,375 Non-controlling interest 853,125 62,500 312,500 Inventories Equipment Patent 61,250 Goodwill Investment in Glock 468,750 Non-controlling interest The purchase price of Taurus Inc included a control premium of P68,750. Determine the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 2021 if the non-controlling interest is assumed to be measured at fair value.

On May 1, 2021, Taurus Inc acquired most of the outstanding shares of Glock Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Taurus Inc and its subsidiary are shown below: Stockholders' equity-Glock 2,437,500 Investment in Glock 1,584,375 Non-controlling interest 853,125 62,500 312,500 Inventories Equipment Patent 61,250 Goodwill Investment in Glock 468,750 Non-controlling interest The purchase price of Taurus Inc included a control premium of P68,750. Determine the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 2021 if the non-controlling interest is assumed to be measured at fair value.

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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REQUIRED: Determine the percentage owned by the parent
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FE holds investments in a number of subsidiaries and associate entities and made one change to its holdings in 2021, which was the acquisition of LT. The statement of financial position of the FE group as at 31 December 2021 and its comparative are shown below:Statement of financial position as at 31 December 2021 2020ASSETS R000 R000Non-current assetsProperty, plant and equipment 24 000 20 200Goodwill 6 300 5 800Investment in associates 5 200 4 70035 500 30 700Current assets 42 500 31 700Total assets 78 000 62 400EQUITY AND LIABILITIESEquity attributable to owners of the parentShare capital (R1 ordinary shares) 18 000 15 000Share premium 1 000 -Revaluation reserve 2 000 -Retained earnings 12 500 7 60033 500 22 600Non-controlling interests 9 200 8 800Total equity 42 700 31 4006Non-current liabilitiesLong-term borrowings 16 000 18 000Current liabilities 19 300 13 000Total liabilities 35 300 31 000Total equity and liabilities 78 000 62 400Additional information:1. FE acquired 70% of the…