Sterne acquired 60% of the voting equity shares of Defoe. Defoe had the following equity at the date of acquisition: $ Ordinary shares $1 500,000 Retained earnings 250,000 The cost of the investment was $850,000 and the fair value of the non-controlling interest at acquisition was $120,000. What was the goodwill on acquisition of Defoe? a. $100,000 b. $132,000 c. $520,000 d. $220,000

Q: 28

A: Generally, the Company purchases another company's business by giving the purchase price to the…

Q: Grant Company acquired Lee Company for $600,000 cash. The fair value of Lee's assets was $520,000,…

A: An accounting equation refers to a mathematical representation of the transaction. It indicates that…

Q: cy, plant and equipment, net 33,600 Long-term liabilities 13,440 -Stockholders' equity 26,880…

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Q: Required: a. Compute the goodwill or gain from the business combination. Assume that in case b the…

A: The Goodwill/Gains from business combination = Investment value - total fair value of share

Q: Assume Investor A pays $900,000 for 100% ownership of Company B. At the time of the acquisition,…

A: Fair value of net identifiable assets is also written as FVNIA. It is the amount of net identifiable…

Q: on (debit balance) te the gain on acquisition and prepare Phelps' journal entry to record the…

A: Balance sheet refers to the form of financial document of a company that reflects the year end…

Q: After the business combination on the basis of full-goodwill approach, what amount of goodwill will…

A: A business combination is a transaction wherein the acquirer gets control of another business.…

Q: 1. Goodwill on December 31, 2020 balance sheet. 2. NCINAS.

A: The equity approach is typically used by firms to display the acquired stake that reflects the…

Q: Bill acquired 75% of Ben and 30% of Weed when Ben's reserves were £16,000, and those of Weed were…

A: 1. Group Balance SheetTo prepare a group balance sheet, we need to consolidate the balance sheets of…

Q: To recognize goodwill of P300,000, how many shares were to be issued? * Red Corporation will isue…

A: Shares issued for goodwill=GoodwillMarket value per share

Q: Book Value P60,000 Market Value P60,000 Cash 130,000 580,000 200,000 40,000 (250,000) (10,000)…

A: Non controlling interest also known minority interest means where share holder own less then 50 % of…

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Q: P Company paid $5,000,000 (cash) for an 80% interest in S Company on 7/1/07. The book values and…

A: Goodwill is referred to as an intangible asset that is related to the purchase of one company by…

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A: The non controlling interest is the share of minority holding dhares less than 50%.

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Q: Determine the non-controlling interest in net income in the year 20x6.

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Q: The Non-controlling interest in Net Income for 20x1:

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Q: 8. Nail Bite Co. acquired land with fair value of $4,000,000 in exchange for Nail Bite's 10,000…

A: Gain on the exchange can be calculated by deducting the market value of share from the fair value of…

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A: Correct option is b) 15,000

Q: Assume H Ltd purchased 80% of the equity shares of S Ltd at a price of Rs 90,000 two years ago when…

A: Formula: Profits attributable to H Ltd = Total Accumulated profit balance x ownership owned…

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A: Non-controlling interest - It is an ownership position where shareholder owns less than 50% of…

Q: Book Value Market Value P60,000 Cash P60,000 130,000 Inventory Plant Assets (net) 210,000 630,000…

A: Share of NCI in Identifiable net asset on the date of acquisition:     Amount (P) Cash…

Q: 01) Jack acquired 80% of the voting equity shares of Jill. Jill had the following equity at the date…

A: When one company buys another, the intangible asset known as goodwill is acquired. It denotes a…

Q: Ordinary shares $1 Retained eamings 1,000,000 800,000 1 800 000

A: The intangible traits and competitive advantages that make a firm more valuable than the sum of its…

Q: Summer acquired 70% of the ordinary shares of Winter for €200,000 on 31 December 20X3 when the net…

A: Formula: Goodwill = Purchase price - book value

Q: Delta Corporation acquires 70 percent of Bravo Company’s stock.  What amount of non-controlling…

A: Introduction Non-Controlling interest: If the parent company does not own 100% stakes in subsidiary…

Q: Question 2 On January 1, 2020, Party Corporation acquired 70 percent of Selfie Company's common…

A: Since this is a multi-part question, we are going to solve only first three for you. To get the…

Q: PAR plc acquired 75% of voting rights of SUB plc on 30th of June, 20X2 when SUB's retained earnings…

A: NCI stands for non controlling interest, it is also called minority interest. NCI occurs when…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.