X co, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends. Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years, but equipment 5 years 3- there is no impairment for goodwill during 2020 if inventory balance on date of acquisition in parent co 50,000 & in subsidiary co 60,000 what is amount of inventory in consolidated balance sheet in 1/1/2020 Select one: a. 84,000 b. 130,000 C. 110,000 d. 136,000

X co, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends. Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years, but equipment 5 years 3- there is no impairment for goodwill during 2020 if inventory balance on date of acquisition in parent co 50,000 & in subsidiary co 60,000 what is amount of inventory in consolidated balance sheet in 1/1/2020 Select one: a. 84,000 b. 130,000 C. 110,000 d. 136,000

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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Concept explainers

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.

Question

X co, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the
y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y
co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land
its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 )
but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for
31/12/2020 and paid $ 60,000 dividends.
Other information
1- the y inventory completely sold during 2020
2- the building useful life was 7 years ,
but
equipment 5 years
3- there is no impairment for goodwill during 2020
if inventory balance on date of acquisition in parent co 50,000 & in subsidiary co 60,000 what is
amount of inventory in consolidated balance sheet in 1/1/2020
Select one:
a. 84,000
b. 130,000
C. 110,000
d. 136,000
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X co, purchased 75% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the Y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of Y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 What is the amount of NCI in net assets in 1/1/2020 Select one: a. 100,000 b. 55,000 c. 80,000 d. 75,000
on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the Y net assets was $ 140,000 ,in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000 , declared dividend $30,000 , X using equity methods what is non- controlling interest balance on 1/1/2019 Select one: a. 37,500 b. 10,000 c. 47,500 d. 50,000
on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the Y net assets was $ 140,000 , in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000 , declared dividend $30,000 , X using equity methods what is non- controlling interest balance on 1/1/2019 Select one: a. 37,500 b. 47,500 c. 50,000 d. 10,000 Next page ere to search hp 近

Giant Ltd acquired 80 percent share capital of Expert Ltd. On 1 July 2018 for a cost of $1,600,000. Asat the date of acquisition, all assets and liabilities of Expert Ltd were fairly valued except land thathas a carrying value of $150,000 less than the fair value. The recorded balance of equity of Expert Ltd asat 1 July 2018 were as:Share capital $800,000Retained earnings $200,000General Reserve $400,000Total $1,400,000Additional information: The management of Giant Ltd values non-controlling interest at the proportionate share of ExpertLtd identifiable net assets. Expert Ltd has a profit after tax of $200,000 for the year ended 30 June 2019. During the financial year to 30 June 2019, Expert Ltd sold inventory to Giant Ltd for a price of$120,000. The inventory costs Expert Ltd $60,000 to produce. 25 percent of the inventory is stillon the hand of Giant Ltd as of 30 June 2019. During the year Expert Ltd paid $60,000 in consultancy fees to Giant Ltd. On 1 July 2018, Expert Ltd sold…
Giant Ltd acquired 80 percent share capital of Expert Ltd. On 1 July 2018 for a cost of $1,600,000. As at the date of acquisition, all assets and liabilities of Expert Ltd were fairly valued except a land that has a carrying value $150,000 less than the fair value. The recorded balance of equity of Expert Ltd as at 1 July 2018 were as: Share capital Retained earnings $800,000 $200,000 $400,000 51,400,000 General Reserve Total Additional information: HCLMES INNTITUTE The management of Glant Ltd values non-controlling interest at the proportionate share of Expert Ltd identifiable net assets. Expert Ltd has a profit after tax of 5200,000 for the year ended 30 June 2019. During the financial year to 30 June 2019, Expert Ltd sold inventory to Giant Ltd for a price of $120,000. The inventory costs Expert Ltd $60,000 to produce. 25 percent of the inventory are still on the hand of Giant Ltd as at 30 June 2019. • During the year Expert Ltd paid S60,000 in consultancy fees to Giant Ltd. On 1…