Plz fast In preparation for the Advanced Accounting assessment Zainab presented her solution to the following exercise that wasassigned by the instructor.The target of Japan Co. was to acquire 70% of Tokyo's 100,000 outstanding voting shares. However, Japan was able toacquire only 40% of Tokyo's shares. The Board of Directors of Japan agreed to pay $22.00 for each share of Tokyo Co.when Tokyo's shares trade at an average $20.00 per share. Consequently, Japan was able to acquire 70% of Tokyo onJanuary 1, 2020 for $1,540,000 cash. Tokyo's net assets book value was $1,900,000 and only Equipment (5 yearsremaining life) was undervalued by $40,000.Zainab suggested that consolidation entry 'A' for the year 2021 should be as follows:Equipment.Dr.Goodwill.Dr.Investment in Tokyo Co.Cr.Noncontrolling InterestCr.You told Zainab that the above journal entry is not correct.Required:(a) Tell Zainab what would you call the extra $2.00 per share paid by Japan to Tokyo Co.(b) What is the effect of this extra amount on consolidation entry A.(c) Prepare the correct consolidation entry 'A' with amounts for the year 2021.For the toolhar presS ALT-E10

Consolidated financial statements are prepared when the parent company acquires more than 50%…

preparaion 1or the Advanced Accounting assessment Zainab pre assigned by the instructor. The target of Japan Co. was to acquire 70% of Tokyo's 100,000 ou acquire only 40% of Tokyo's shares. The Board of Directors of Ja when Tokyo's shares trade at an average $20.00 per share. Consec January 1, 2020 for $1,540,000 cash. Tokyo's net assets book remaining life) was undervalued by $40,000. Zainab suggested that consolidation entry 'A' for the year 2021 sho Equipment Goodwill .... .Dr. Dr. Investment in Tokyo Co. Cr. Noncontrolling Intoroat

preparaion 1or the Advanced Accounting assessment Zainab pre assigned by the instructor. The target of Japan Co. was to acquire 70% of Tokyo's 100,000 ou acquire only 40% of Tokyo's shares. The Board of Directors of Ja when Tokyo's shares trade at an average $20.00 per share. Consec January 1, 2020 for $1,540,000 cash. Tokyo's net assets book remaining life) was undervalued by $40,000. Zainab suggested that consolidation entry 'A' for the year 2021 sho Equipment Goodwill .... .Dr. Dr. Investment in Tokyo Co. Cr. Noncontrolling Intoroat

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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