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Questions:
a. How much is the Net Income Attributable to Parent?
b. How much is the Net Income Attributable to NCI?
c.
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Solved in 2 steps
- L2-4 Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows: 31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2 200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000) 100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2PROBLEM III. On January 1, 2020, P Corporation purchase 80% of S Company's ordinary share for P810,000. P37,500 of the excess is attributable to goodwill and the balance to depreciable asset with economic life of ten years. NCI is measured at fair value on the date of acquisition. On this date, shareholders' equity of the two companies were as follows: P Corporation S Company Ordinary share P1,312,500 P300,000 Retained earnings 1,950,000 525,000 On December 31, 2020, S Company reported net income of P131,250 and paid dividends of P45,000 to Party. Party reported earnings from its own operations of 356,250 and paid dividends of P172,500. Goodwill has been impaired and should be reported at P7,500 on December 31, 2020. 1. Net income attributable to parent 2. NCINISPROBLEM III. On January 1, 2020, P Corporation purchase 80% of S Company's ordinary share for P810,000. P37,500 of the excess is attributable to goodwill and the balance to depreciable asset with economic life of ten years. NCI is measured at fair value on the date of acquisition. On this date, shareholders' equity of the two companies were as follows: P Corporation S Company Ordinary share P1,312,500 P300,000 Retained earnings 1,950,000 525,000 On December 31, 2020, S Company reported net income of P131,250 and paid dividends of P45,000 to Party. Party reported earnings from its own operations of 356,250 and paid dividends of P172,500. Goodwill has been impaired and should be reported at P7,500 on December 31, 2020. latlecomeoltolbutable-te-perent. NCINIS 3. NCINAS 4. Consolidated retained earnings 5. Consolidated Shareholders' Equity
- PROBLEM 5 - 5 (PFRS for SMES) Shadow Company acquired the net assets of Recruit Company on July 1, 2019, and made the following entry to record the acquisition (both using PFRS for SME): Current and Non-current assets Goodwill 3,600,000 600,000 Liabilities Ordinary share capital, P1 par Share Premium 480,000 600,000 3,120,000 The agreement further provides that additional cash consideration would be paid on June 30, 2020, equal to twice the amount by which net eamings of Recruit Company exceed P300,000 with the first 12 months of acquisition. Net income was P260,000 in 2019 (earned evenly) and P160,000 for the first six months of 2020. Included in the goodwill computation and liabilities above is the fair value of the contingent consideration, which was estimated to be P80,000 as of July 1, 2019, although assessed as not probable at this date. What should be the amount of Goodwill on December 31, 2020?PROBLEM 15 At the beginning of 2018, ESARiDe. Corporetion purchesed 406 of the ordinery shares outstanding of Mary Grece Incorporeted for P15,000.000 when the net assets of Mary Grece Incorporeted amounted to P30,000,000. At the acquisition dete, the carrying amounts of the identifieble assets and liebilities of Mary Grece Incorporeted were equel to their teir value, except for the following: Equipment whose air value was P7.000.000 greater than its carrying amount. b. Inventory whose tair velue wes P200.000 greeter then its carrying amount. a. The equipment hes a remaining lite of 4 years, and the inventory wes all sold during 2013. Mary Grace Incorporated has two classes of shares: Ordinary shares (par vale, P100). 300,000 shares outstanding 15% cumalative preference shares (gar valse, PS0). 100.00 shares outstanding The investee reported the following net income finclusive of enter-company transactions) and payment of cash dividend: 2018 2019 Net income 20,000,000 35,000,000…PROBLEM IX Tala Company purchased 35% interest in Kilometro Company for P5,600,000 on July 15, 2020. Tala already held a 25% interest purchased for P3,000,000. As of this date, the carrying value of the identifiable net assets of Kilometro totaled P17,000,000. The carrying value of the identifiable net assets of Kilometro equal their fair values except for the undervaluation of Inventories and Machineries by P200,000 and P1,000,000 respectively. The fair value of the noncontrolling interest on July 15, 2020 is P7,000,000. 1. The previously held interest at 25% is valued on July 15, 2020 at: 2. How much is the gain on bargain purchase to be recognized as a result of the business combination?
- Q.1 On January 1, 2019, Rami Corporation purchased 25% of the outstanding common stock of Sawsan Corporation for $100,000 cash. Book value and fair value of Sawsan's assets and liabilities at the time of acquisition are shown below. Assets Book Fair Values Values Cash $40,000 $40,000 Accounts receivable 100,000 90,000 Inventories 40,000 180,000 $360.000 50,000 210,000 Equipment $390,000 Liabilities & Equities Accounts payable Note payable Capital stock Retained earnings $110,000 $110,000 50,000 40,000 100,000 100,000 $360.000 $150.000 Required: Prepare an allocation schedule for Rami's investment in Sawsan.PROBLEM VII On July 1, 2019, Eya Company acquired 700,000 shares of Agas Company at a price of P13 per share. Eya estimated that the price paid include P1.50 premium in order to gain control over Agas. On this date, the fair values of Agas' identifiable assets and liabilities and their carrying values are given below: Book Value P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 Fair Value P2,000,000 11,000,000 Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings 1. Determine the amount of goodwill.Question 2 On January 1, 2020, Party Corporation acquired 70 percent of Selfie Company's common stock for $84,000 cash. The fair value of the noncontrolling interest at that date was determined to be $36,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Party Co. $26,000 30,000 32,000 63,000 175,000 40,000 84,000 $450,000 Selfie Co. $15,000 22,500 Cash Accounts Receivable Inventory 18,000 44,500 Land Buildings and Equipment Less: Accumulated Depreciation Investment in Selfie Corp. 85,000 -30,000 Total Assets $155,000 Accounts Payable $90,000 120,000 150,000 $35,000 25,000 40,000 55,000 $155,000 Bonds Payable Common Stock Retained Earnings Total Liabilities and Equity 90,000 $450,000 At the date of the business combination, the book values of Selfie's net assets and liabilities approximated fair value except for inventory, which had a fair value of $21,500, and building and equipment, which had a fair value of $55,000.…
- PROBLEM VI. Philippians Company, SME, purchased 60% of Seth Company on January 2, 2019 for P3,930,000 when Seth's book value was P6,300,000. On that day, the market value of the net assets of Seth equaled their book values with the following exceptions: Book value Market value Remaining life Buildings P1,850,000 P1,600,000 20 years Equipment 300,000 500,000 10 years Seth Company reported the following for 2019 and 2020: Net income (loss) P 750,000 Dividends 2019 P100,000 2020 150,000 50,000 1. How much is the NCINAS at December 31, 2020?Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows: 31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2 200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000) 100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2 (Key answer = Rp30%*Rp100.000.000 = Rp30.000.000) show step by step. You don't need to rush.C-Corporation A acquires C-Corporation B in a taxable stock acquisition. In the process of completing the transaction, A incurs $27 million of transaction costs, consisting of the following: 15 $5 million pre-brightline due diligence $10 million post-brightline due diligence $12 million inherently facilitative costs How much can A deduct and how much must A capitalize? a. Deduct $5 million; capitalize $22 million b. Deduct $15 million; capitalize $12 million c. Deduct all; capitalize none d. Deduct none; capitalize all