Suppose that Fattal company acquires exact of Company Pfizer Co. for $1,500,000 at the company reports $2,150,000 earnings for th $550,000 in cash dividends at the end of the 1. Using the cost method, what is the investm investment account balance respectively for O A) $121,000; $1,500,000 O B) $473,000; $1,852,000
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- ukm0jUnAg/formResponse?pl-1 Required Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer company reports $1,200,000 earnings for the year in its net income and pays $550,000 in cash dividends at the end of the year 2020. 1. Using the cost method, what is the investment income and the balance sheet investment account balance respectively for AXE company? O A) $137,500, $3,000,000 B) $300,000; $3,162,500 C) $137,500; $2,300,000 D) None of the above.osidiary for 2021? b. P6,000 P5,000 d. P6,100 с. 3. Phantom Corp. has a 70% interest in the outstanding shares of Shalom Co. On January 1, 2022, Shalom Co. sold to Phantom a machinery for P360,000. The machinery was acquired by Shalom four years ago at P500,000, estimated life of 10 years. In 2022, Phantom and Shalom reported net income of P500,000 (cost method) and P200,000, respectively. amounted to P50,000. Dividends declared and paid by Shalom in 2022 Determine the consolidated net income for 2022. a. P525,000 b. P611,000 c. P615,000 d. P570,000 ntrolling interest in net income in 2022?Proble.n 16-15 (PHILCPA Adapted) Heste Company invested in shares of another entity. Number of shares Cost 2018 2019 20,000 40,000 2,000,000 3,500,000 In 2020, the entity received 60,000 rights to purchase one share at P80. Five rights are required to purchase the share. At issue date, rights had a market value of P5 each. The entity used rights to purchase 10,000 additional shares of the investee and allowed the rights not exercised to lapse. What amount was debited to investment account for the purchase of the additional new shares? 1,100,000 b. 1,050,000 a.: 800,000 900,000 C, d.
- O Quiz: BSA 3203 BBF - Midterm O x A ue.instructure.com/courses/24511/quizzes/128777/take/questions/2083785 =S O Problem 5 On January 1, 2021, Pe Inc. purchased Ra Corp. for P1,500,000 for 100% ownership of its common stocks. An P80,000 excess was identified in the purchase price, which was attributable to an equipment with a net book value of P400,000 and remaining useful life of 8 years as of date. On December 31, 2022, the equipment identified at acquisition date that was attributed to the excess was sold to an unrelated party for P400,00O. How much gain from the sale of equipment must be reported in the consolidated income statement of Pe and Ra? 11:52 AM O Type here to search 33°C Light rain A ENG 29/03/20226. ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2019. The following are data available at Dec 1, 2020: Cost per share P3.00 Transaction cost per share (upon acquisition) P1 Most recent transaction price per share P2 Transaction cost per share (current) P.50 If ABC classified these shares as investment in stocks-FVOCI, how much is the adjustment for the change in fair value? FVPL 2,000 FVOCI 1,000 FVOCI 1,500 FVOCI 2,000M13 A B D 1 2 E17.16 (LO 2, 3) (Fair Value and Equity Method Compared) Jaycie Phelps Inc. acquired 20% of 3 the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price 4 was $1,200,000 for 50,000 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on 5 June 30 and on December 31, 2021. Kulikowski reported net income of $730,000 for 2021. The fair value 6 of Kulikowski's stock was $27 per share at December 31, 2021. 8 Instructions 9 a. Prepare the journal entries for Jaycie Phelps Inc. for 2020 and 2021, assuming that Phelps cannot 10 exercise significant influence over Kulikowski. 11 b. Prepare the journal entries for Jaycie Phelps Inc. for 2020 and 2021, assuming that Phelps can exer- 12 cise significant influence over Kulikowski. 13 C. At what amount is the investment in securities reported on the balance sheet under each of these methods 14 at December 31, 2021? What is the total net income reported in 2021 under each of…
- SB Corp. is offered 200,000 shares of EX Corp. ordinary shares in exchange for its net assets at August 30, 2020. The acquirer shares had a market value of P11 per share on that date. The balance sheet of the two companies at the date of acquisition follow: SB CORP EX CORP Total assets 1,097,500 1,733,250 Liabilities 1,097,500 383,250 Ordinary shares, par P1 800,000 25,000 Retained earnings (deficit) (15,000) 1,325,000 Total liabilities and stockholders’ equity 1,097,500 1,733,250 The goodwill (income from acquisition) resulting from the business combination would be#13 YOO-YOO Company purchased 200 of the 1000 outstanding shares of WEBUL Company's common stock for $710000 on January 2, 2021. In 2021, WEBUL Company declared dividends of $155000 and reported earnings for the year of $510000.If YOO-YOO Company used the fair value method of accounting for its investment in WEBUL Company, its Equity Investments (WEBUL) account on December 31, 2021, should be $812000. $710000. $679000. $781000.On June 30, 2019, Cassiopeia purchased the following shares at a total cost of P3,600,000: Aquila Grus Indus Number of shares 50,000 100,000 200,000 Total fair value 450,000 1,350,000 1,800,000 At the end of the year, the fair values of the shares are as follows: Aquila Grus Indus P12 16 6 On June 30, 2020, Cassiopeia sold half of its holdings in Indus at P7.50 per share. Prepare the journal entries in the books of Cassiopeia given the following independent assumptions: 1. SEPARATE JOURNAL ENTRIES for shares classified as Financial Asset at Fair Value through Profit or Loss (P/L) & Fair Value through Other Comprehensive Income (OCI
- The Ludel Company acquired the net assets of the Girl Conrad Company on January 1, 2018, and made the following entry to record the purchases:Current assets P100,000Equipment 150,000Land 50,000Buildings 300,000Goodwill 100,000Liabilities 80,000Common stock, P1 par 100,000Paid-in capital in excess of par 520,0001. Assuming that additional shares on January 1, 2020 would be issued on that date to compensate for any fall in the value of Ludel common stock below P16 per share. The settlement would be to cure the deficiency by issuing added shares based on their fair value on January 1, 2020. The fair price of the shares on January 1, 2020 was P10.What is the additional number of shares issued on January 1, 2020 to compensate for any fall in the value of the stock? a. 60,000b. 100,000c. 10,000d. 160,000 2. The Jonnie Company owns 75% of the Junior Company. On December 31, 2020, the last day of the accounting period, Junior sold to Jonnie a non-current asset for P200,000. The asset…Compute for the NCI on June 30, 2023 On June 30, 2021, ABC Co. acquired 75,000 of DEF Co.'s 100,000 outstanding shares with par value per share of P1 for P4 per share. At this time, DEF's shares have a quoted price of P3.50 per share and DEF's retained earnings is P80,000. Additional information: • DEF's total assets include land classified as investment property at a cost of P180,000. The land's fair values are P200,000 on acquisition date and P320,000 on June 30, 2023. DEF uses the cost model for its investment properties. However, the group uses the fair value model. • On acquisition date, DEF's building classified as property, plant, and equipment had a fair value of P30,000 in excess of its carrying amount. The building's remaining useful life is 5 years. The group uses the straight-line method of depreciation. • The current accounts on June 30, 2023 include intercompany receivables and payables of P10,000. • An impairment test on June 30, 2023 concluded that goodwill is impaired…Q2. Sky Ltd acquired all the issued shares of Jupiter Ltd on 1 January 2019. The following transactions occurred between the two entities: On 1 June 2020, Sky Ltd sold inventory to Jupiter Ltd for $12 000; By 30 June 2020, Jupiter Ltd had sold 20% of this inventory to other entities for $3000. The other 80% was all sold to external entities by 30 June 2021 for $13 000. During the 2020–21 period, Jupiter Ltd sold inventory to Sky Ltd for $6000 at cost plus 20% markup. Of this inventory, 20% remained on hand in Sky Ltd at 30 June 2021. The tax rate is 30%. Required: A).Prepare the consolidation worksheet entries for Sky Ltd at 30 June 2021 concerning the intragroup inventory transfers. B).Compute the cost of goods sold to be reported in the consolidated income statement for 2021 relating to this intra-group sale.
