On May 1, 20xl, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of ABC Inc and its subsidiary are shown below: Stockholders' equity-XYZ Investment in XYZ Non-controlling interest 2,437,500 1,584,375 853,125 Inventories Equipment Patent Goodwill 62,500 312,500 61,250 Investment in XYZ 468,750 Non-controlling interest The purchase price of ABC Inc included a control premium of P68,750.
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Determine the percentage owned by the parent.
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- On February 1, 20x1, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The incomplete working paper elimination entries on that date for the consolidated of statement of financial position of Paco Corp. and School Inc. are shown below: WPEE 1 Shareholders' equity - School Inc. 1,453,500 Investment in School Inc. 1,235,475 Non-controlling interest 218,025 WPEE 2 Inventories 33,150 Equipment 280,500 Goodwill ? Investment in School Inc. 349,775 Non-controlling interest ? Assuming NCI is measured at NCI proportionate share, the cash consideration excludes control premium amounting to P25,000, what is the amount of goodwill?On February 1, 20x1, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The incomplete working paper elimination entries on that date for the consolidated of statement of financial position of Paco Corp. and School Inc. are shown below: WPEE 1 Shareholders' equity - School Inc. 1,453,500 Investment in School Inc. 1,235,475 Non-controlling interest 218,025 WPEE 2 Inventories 33,150 Equipment 280,500 Goodwill ? Investment in School Inc. 349,775 Non-controlling interest ? Assuming NCI is measured at fair value, the cash consideration includes control premium of P20,000, what is the amount of goodwill?On July 1, 2021, ABC Co. acquired most of the outstanding shares of XYZ Co. for cash. The incomplete Working paper elimination entries on that date for the consolidated financial position are as follows: E1: Shareholder's Equity - XYZ Dr. 2,437,500 Investment in XYZ - Cr. 1,584,375 Non-controlling Interest - Cr. 853,125 E2: Inventories - Dr. 62,500 Equipment - Dr. 312,500 Patent - Dr. 61,250 Goodwill - Dr. ????? Investment in XYZ - Cr. 468,750 Non-controlling Interest - Cr. ????? Included in the purchase price is a control premium of 68,750. Assuming NCI is measured at Fair Value in the amount of P1,500,000, what is the goodwill to be reported in the consolidated financial position at the date of acquisition?
- On May 1, 2021, Caprisun Inc acquired most of the outstanding shares of Cancer 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-Cancer 2,437,500 Investment in Cancer 1,584,375 Non-controlling interest 853,125 Inventories 62,500 Equipment 312,500 Patent 61,250 Goodwill ? Investment in Cancer 468,750 Non-controlling interest ? The purchase price of Caprisun Inc included a control premium of 68,750. What is 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.9. On February 1, 20x21, Paco Corp. acquired outstanding ordinary shares of School Inc. for cash. The incomplete working paper elimination entries on that date for the consolidated of statement of financial position of Paco Corp. and School Inc. are shown below: WPEE 1 Shareholders’ equity – School Inc. 1,453,500 Investment in School Inc. 1,235,475 Non-controlling interest 218,025 WPEE 2 Inventories 33,150 Equipment 280,500 Goodwill…On July 1, 2018, Alpha Co. acquired most of the outstanding voting stocks of Roger Co. for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Alpha Co. and its subsidiary are shown below: Common stock - Roger 1,500,000 Share premium - Roger 937,500 Investment in Roger 1,584,375 Non-controlling Interest 853,125 Inventories 62,500 Equipment 312,500 Patent 61,250 Investment in Roger ? Non-controlling Interest ? Goodwill ? Investment in Roger 185187.5 Non-controlling Interest ? Included in the purchase price is a control premium of P68,750. How much is the percentage ownership of the controlling interest and non-controlling interest?
- On July 1, 2018, Alpha Co. acquired most of the outstanding voting stocks of Roger Co. for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Alpha Co. and its subsidiary are shown below: Common stock - Roger 1,500,000 Share premium - Roger 937,500 Investment in Roger 1,584,375 Non-controlling Interest 853,125 Inventories 62,500 Equipment 312,500 Patent 61,250 Investment in Roger ? Non-controlling Interest ? Goodwill ? Investment in Roger 185187.5 Non-controlling Interest ? Included in the purchase price is a control premium of P68,750. (a) Compute for the amount of goodwill to be reported in the consolidated statement of financial position on July 1, 2018 assuming non-controlling interest…On July 1, 2018, Alpha Co. acquired most of the outstanding voting stocks of Roger Co. for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Alpha Co. and its subsidiary are shown below: Common stock - Roger 1,500,000 Share premium - Roger 937,500 Investment in Roger 1,584,375 Non-controlling Interest 853,125 Inventories 62,500 Equipment 312,500 Patent 61,250 Investment in Roger ? Non-controlling Interest ? Goodwill ? Investment in Roger 185187.5 Non-controlling Interest ? Included in the purchase price is a control premium of P68,750. Compute for the amount of goodwill to be reported in the consolidated statement of financial position on July 1, 2018 assuming non-controlling interest…Papa Corporation, a publicly-listed company, acquired Sansa Company, a privately-owned company, onSeptember 30, 20X1. Given below are their statement of financial position (SFP) as of the date ofacquisition:Papa CorporationStatement of Financial PositionSeptember 30, 20X1Current Assets P800 Current Liabilities 230Non-Current Assets 1,200 Non-Current Liabilities 420Common Stock, 100 Shares 200Additional Paid-In Capital 350Retained Earnings 800Total Assets P2,000 Total Liabilities and Equity P2,000Sansa CompanyStatement of Financial PositionSeptember 30, 20X1Current Assets P600 Current Liabilities 200Non-Current Assets 1,300 Non-Current Liabilities 500Common Stock, 50 Shares 150Additional Paid-In Capital 250Retained Earnings 800Total Assets P1,900 Total Liabilities and Equity P1,900Additional information about the acquisition are as follows:• Papa Corporation issues three (3) shares in exchange for each ordinary share of Sansa Company. Allof Sansa Company’s shareholders exchange their…
- Determine the percentage owned by the parent On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of ABC Inc and its subsidiary are shown below:Gumiho Corporation acquired Forest Company through an exchange of common shares. All of Forest's assets and liabilities were immediately transferred to Gumiho. Gumiho's common stock was trading at P20 per share at the time of exchange. Following selected information is also available. Par value of shares outstanding Additional Paid-in Capital Before Acquisition P400,000 P700,000 After Acquisition P500,000 P1,100,000 Based on the proceeding information, what is the number of shares was issued at the time of the exchange? 25,000 35,000 20,000 10,000 The Alhambra Company had these accounts at the time it was acquired by Kingdom Co.: Cash P 108,000 Accounts Receivable 1,371,000 Inventories 360,000 PPE 1,948,200 Accounts Payable 1,052,400 Kingdom Co. paid P4,200,000 for net assets of Alhambra Company. It has determined the fair market values of investment and PPE were P399,000 and P2,700,000, respectively. An assumed contingent liability arising from past events with a fair value amounting…LGM Motors acquired 80% of NS Service Center outstanding shares on January 1, 2022 by payingcash. The consolidated statement of financial position showed the following balances at thedate of acquisition.Consolidated Balances AmountTotal Assets 15,670,000Total Liabilities 4,575,000Total Shareholder’s Equity ?The book value of the net assets of NS Services Center is P4,500,000. The assets of NS ServiceCenter are fairly valued except for the following:• Patent on the product that is deemed worthless, P50,000.• Goodwill of P150,000.• Unrecognized identifiable R&D of P75,000.The fair value of the non-controlling interest is 705,000 and the book value of LGM’s equitybalance is P9,500,000.On December 31, 2022 the following information were provided by NS Services Center:• Net income of 400,000 was recognized.• Patents remaining useful life is 4 years.• Pre-existing goodwill presented above was impaired with a current value of 120,000.• Dividends were declared amounting to P100,000.LGM…