Problem 1-13 (Algo) (LO 1-4, 1-5) On January 3, 2021, Matteson Corporation acquired 30 percent of the outstanding common stock of O'Toole Company for $1,335,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $873,000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of 10 years. For the year ended December 31, 2021, O'Toole reported net income of $324,000 and declared cash dividends of $35,000. On December 31, 2021, what should Matteson report as its investment in O'Toole under the equity method? Investment

Problem 1-13 (Algo) (LO 1-4, 1-5) On January 3, 2021, Matteson Corporation acquired 30 percent of the outstanding common stock of O'Toole Company for $1,335,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $873,000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of 10 years. For the year ended December 31, 2021, O'Toole reported net income of $324,000 and declared cash dividends of $35,000. On December 31, 2021, what should Matteson report as its investment in O'Toole under the equity method? Investment

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: On January 3, 2024, Matteson Corporation acquired 40 percent of the outstanding common stock of O'Toole Company for $1,379,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $863,000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of 10 years. For the year ended December 31, 2024, O'Toole reported net income of $353,000 and declared cash dividends of $35,000. On December 31, 2024, what should Matteson report as its investment in O'Toole under the equity method? Investment
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11. On December 1, 2021, ABC Company acquired all the assets and liabilities of XYZ Inc. issuing 100,000 shares. The fair value of XYZ's assets and liabilities at this date are presented below (see image) The financial year for ABC Company is January to December. The fair value of each ABC share at acquisition date is P1.90. At the acquisition date, the acquirer could only determine a provisional fair value for the Plant. On March 9, 2022, ABC received the final value from the independent appraisal, the fair value of the Plant at acquisition date is P131,000 with a 5 year remaining useful life from date of acquisition. Determine a) Fair value of the net assets acquired b) amount of goodwill or gain from acquisition
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No. 32
My question is on the image thanks.
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View previous attempt On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these shares, Presidio issued to the owners of Mason $295,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Presidio paid $26,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $11,500 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Cash Items Presidio Company $ 63,000 Mason Company $ 29,200 Receivables Inventory Land Buildings (net) 306,000 189,000 426,000 168,000 207,000 213,000 484,000 237,000 Equipment (net) $167,000 73,800 Accounts payable Long-term liabilities Common stock-$1 par value (221,000) (62,700) (444,000) (295,000) (110,000) 0 Common stock-$20 par value 0 (120,000) Additional paid-in capital Retained earnings, 1/1/24 (360,000) (518,000)…