Super Ltd acquired 65% of Car Ltd for a cost of $650,000, when the equity of Car Ltd consisted of: Share Capital  $100,000 General Reserve $8,000 Retained Earnings $20,000     All the identifiable assets and liabilities of Car Ltd were recorded at fair value except for the following:   Carrying Amount Fair Value Vehicles (cost $550,000) $450,000 $500,000 Patent $70,000 $90,000     Prepare the journal entries for the pre-acquisition stage (i.e., Stage 1) of recording the Non-Controlling Interest (NCI) using the partial goodwill method

Q: t of Stylus Corporation’s stock on January 2, 20X3, for $85,400 cash. Summarized balance sheet data…

A: A consolidated balance sheet refers to the form of a financial document that is prepared in order to…

Q: Heavy Rocks Company acquires 100% of the stock of Simple Machinery Co. on January 1, 2XX0, for…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: P Markets Co. purchased 60% of S Ltd’s ordinary share capital on 1 January 20X4 for $540,000. The…

A: Net assets refer to the value of assets after all the liabilities. It is computed by subtracting the…

Q: What amount should be recorded as goodwill on the date of the purchase?

A: Goodwill on the date of acquisition = Purchase consideration - Fair value of assets acquired.

Q: Power Corporation acquired 70 percent of Silk Corporation’s common stock on December 31, 20x2.…

A: Goodwill is a fixed asset of the company which is created due to customer base, reputation, employee…

Q: Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for…

A: Consolidated statement is a financial statements of an entity with subsidiary or multiple…

Q: On January 1, 20X0, Pepper Corporation issued 10,000 of its $15 par value shares to acquire 45…

A: Journal Entry is the primary step to record the transaction in the books of accounts. The amount…

Q: Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for…

A: Consolidation entry is recorded by the holding company to consolidate the accounts of its subsidiary…

Q: ired 90% of the Equity Shares of Star. Star retained profits at the date of acquisition were $ 2,…

A: Consolidation - Accounting's consolidation procedure combines the mother branch's finances with…

Q: King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the…

A: An obligation to pay taxes that is accrued during one fiscal year but is not paid until later…

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: Parma Ltd purchased a parcel of assets and liabilities comprising a business directly from Pauls Pty…

A: Journal entries to record the acquisition by Parma Ltd is as under:

Q: Flowerworks Corporation purchases a vehicle for $32,800 to deliver flowers to the surrounding…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: On 1st January 2016, Soft Ltd acquired 70% of share capital of Hard Ltd for $8,175,000. Equity of…

A: Book value of net assets=Share capital +General reserve+retained earnings

Q: On 1/1/21 Playtel Corporation acquired all of the stock of Sydney Corporation for $800,000 cash. The…

A: 1. Particulars   Amount Book value of net assets   $800,000 Common stock 60000   Paid in…

Q: (ii) Oracle Plc owned100% of the equity share capital of Red Plc, a wholly owned subsidiary. The…

A: An impairment test is done on the asset to assess the worth of the assets at the end of a period.…

Q: Lake Incorporated purchased all of the outstanding stock of Huron Company paying $951,000 cash. Lake…

A: The objective of the question is to calculate the amount of goodwill that Lake Incorporated would…

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…

Q: hat amount of total assets will be reported?

A: Step 1 Total assets to be reporting in consolidated financial statements is holding‘s assets+…

Q: Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: ABC Corporation acquired 80 percent of XYZ Corporation on August 1 for P500,000. On that date, XYZ…

A: NCI AS ON DATE OF ACQUISITION ( USING FAIR VALUE METHOD) = 500000/ 80% * 20% = P125,000   ALTERNATE…

Q: Ganda Ko acquired all the assets and assumed all the liabilities of Ganda Korin for a total…

A: To determine the total effect of the acquisition on the retained earnings and contributed capital of…

Q: Apply equity method of accounting to:   (a)Calculate the amount of goodwill at the date of…

A: Journal entries are defined as the recording of the monetary business transactions into the books of…

Q: Required: (a) Prepare a schedule of changes to the acquisition differential for the four year period…

A: Consolidated Net Income : After deducting all costs, taxes, and other charges, a company's…

Q: Prepare the journal entry to record the acquisition expenses

A: Legal fees $50,000 Accounting fees  $30,000 Travel expenses  $10,000 Legal fees…

Q: Company P ac on the acquisiti Assets Cash Inventory Land Building (ne Total The market valu What is…

A: Cashflow is prepared to track how well company is generating cash, paying its debt obligations and…

Q: Calculate and enter the amount of goodwill

A: Given in the question: The carrying amounts is equal identifiable assets is equal to the fair value…

Q: On 1st January 2016, Soft Ltd acquired 70% of share capital of Hard Ltd for $8,175,000. Equity of…

A: Fair Value Adjustment  1. The value of the marine equipment taken over: = Cost of the marine…

Q: On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd for a cash…

A: Equity method of accounting:- This method is used when one company invests in another company and…

Q: repare all necessary eliminating entries at 12/31/X3. Hint - there are 4.

A: Goodwill $85,500 Detailed  explanation Fair Value of Net Assets = 400,000 (Capital Stock) +…

Q: Example: Cost of acquisition n

A: Cost of acquistion is the cost of acquiring assets of the company .  As…

Q: statements of financial position of the companies immediately after the acquisition were as follows-…

A: Total Assets of Hendrix Ltd           = 3,65,000 Less : Liabilities for aquisition      = (1,15,000)…

Q: Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $170,000. Share…

A: Given Information:Share capital (Terry Limited): $100,000Reserves (Terry Limited):…

Q: Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for…

A: Acquisition of Company: - Acquisition of Company refers to when one company purchases or acquires…

Q: Proton Company acquired all of the outstanding ordinary shares of an acquiree paying P7,400,000…

A: Ans. Goodwill is the amount excess paid for acquiring the net assets of the company acquired.

Q: 8. CARNATION Company purchased an entity for P6,000,000 cash on 2 poi January 31. The book value and…

A: Goodwill is the amount paid over the fair value of the net asset acquired.

Q: On 1 July 20X8 Berardo Ltd acquired 25% of the ordinary issued share capital of Ricky Ltd for $375…

A: A goodwill is its reputation for predicted future earnings that are higher than the average rate of…

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.