To have an income from acquisition of P400,000, the number of shares to be issued by LL should be?
Q: Dlaz Company owns a machine that cost $126,300 and has accumulated depreciation of $94,400. Prepare ...
A: Gain (loss) on sale of Machinery = Sales value - Net book value of the Machinery where, Net book val...
Q: find out value of account receivable from following Cash $ 48,000 account payable $ 33,000 office eq...
A: Formula: Accounting equation: Assets = Liabilities + Owners equity
Q: Henrich is a single taxpayer. In 2021, his taxable income is $454,000. What is his income tax and ne...
A: Calculation of taxable income Particulars Amount Gross taxable income 454000 Less: Standard d...
Q: Rean gets a job with a starting monthly salary of 20,000.She is promised by her employer to receive ...
A: Rean’s monthly salary in first year will be $ 20,000 per month. Since she gets monthly increases of ...
Q: A company’s year-end balance in accounts receivable is $2,600,000. The allowance for uncollectible a...
A: Accounts written off = Beginning balance of allowance for uncollectible accounts + bad debt expense ...
Q: The following is a partial trial balance for the Green Star Corporation as of December 31, 2021: Acc...
A: Req-1: Single Step Income Statement GREEN STAR CORPORATION Income Statement For th...
Q: Chapter (9) Practices Q1: On January 1, 2003 Baghdad Company purchased a machine for ID 22000. The c...
A: Depreciation expenditure is the fraction of a corporation's fixed asset expenditure that is deprecia...
Q: t the end of November 2016, Caribbean Productions Ltd had 700 units of product BMR400 in store. For ...
A: Contribution margin per unit is the excess of the sales price per unit over variable cost per unit.
Q: on January 1, 2022. The equipment has an estimated useful life Daniel Company purchased an equipment...
A: Depreciation is the method of assigning the cost of an tangible asset over its useful life. The more...
Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of S950,000. ...
A: Depreciation is the amount which is shown in the income statement as expense. It is the decrease in ...
Q: Emily, who is single, sustains an NOL of $10,080 in 2021. The loss is carried forward to 2022. For 2...
A: calculation of adjusted gross income and taxable income and other requirement are as follows
Q: The balance in the supplies account on June 1 was $5230, supplies purchased during June were $3480, ...
A: In general, supplies are considered a current asset until they are used. When resources are exhauste...
Q: Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At...
A: Consolidation Accounting It is the method to combine financial results of subsidiary companies into...
Q: Purchase of Goods. Paid in Cash 100,000.00 Sale of Goods. Received in cash 150,000.00 Paid Utilities...
A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash...
Q: BE14-2 The Colson Company issued €300,000 of 10% bonds on January 1, 2015. The bonds are due January...
A: Bonds are financial instruments in which an investor lends money to a company or government for a ce...
Q: The Variable Cost of Goods Sold in the Marin Company totals P325,000. Fixed selling and administrati...
A: In this question we are asked to find out the sales and this is of revenue nature question. Sales ...
Q: axed at 25%. Amount Pre-tax Cost Bonds P 3,000,000 1,000,000 4,000,000 8% Preferred Shares 10% Drdin...
A: Weighted average cost of capital is cost of capital considering the weights of different sources of ...
Q: Large Company $ $ $ Net sales 379,420 Cost of sales 163,100 Gross profit Selling, general, and admin...
A: Profit margin measures how much money a firm or business activity produces by dividing income by rev...
Q: old son paid during the same 12-month period totaled $1,800. For the current year, O had net income ...
A: As per the provisions of the medical expense can be claimed if it is paid by the tax payer or his sp...
Q: The expected total capital budget for the year is? 2. Assuming the company has 200,000 ordinary sha...
A: Dividend per share is the dividend amount which has been paid by the company to the one per share wh...
Q: create a cash flow statement The DRT COMPANY presented the following in order to aid the accountant...
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: What is the total non-controlling interest in net income of subsidiary (NCINI5) on Dec 31, 20x5?
A: As per our protocol, we provide the solution to the one question only but as you have asked two mult...
Q: The HEYBM CORPORATION presented the following in order to aid the accountant in preparing the CFS (D...
A: Solution Concept There are two methods of preparing cash flow statement , direct and indirect method...
Q: Proportional method Eamination method Appreciation (RC-Cost) Cost Replacement Cost Equipment Accumul...
A: The question pertains to revaluation of the asset. IAS 16 pertains to revaluation of asset. The IAS ...
Q: CPL contemplates a change in technology that would reduce fixed costs from P 800,000 to P 700,000. H...
A: Break even sales = Fixed costs / Contribution margin ratio where, Contribution margin ratio = 100% -...
Q: Given the following information in standard costing: Standard 18,200 hours at $6.20 Actual ...
A: Direct labor rate variance is a difference between the actual labor hours at budgeted cost and the a...
Q: Classify the following items that may cause discrepancy between accounting profit and taxable income...
A: 1. Taxable temporary difference because tax will be charged on the insurance premium in future when ...
Q: temporary difference Interest earned on investments in tax-exempt government securities. Interest ...
A: Nondeductible expenses refer to those expenses which a company can subtract from its income in order...
Q: Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical ...
A: Solution The relevant cost are those which cost which increases / decreases the total cost of carryi...
Q: The Caribbean Industrial Producers manufactures two products, “Zinc” and” “Ply”. The following sales...
A:
Q: Which inventory valuation model serves as a middle-of-the-road approach for taxes and income? a.Last...
A: When a corporation values its inventory using FIFO, it reports reduced COGS, which boosts its gross ...
Q: QUESTION 7 Match the statement on the left with the category on the right. v "Everyone is going to c...
A: An audit is when an auditor examines or inspects numerous accounting records, accompanied by a physi...
Q: Murata Enterprises has a long-standing policy of acquiring company equipment by leasing. Early in 2...
A: Lease Payment There are mainly two types of leases are there one is operating lease and another one ...
Q: Vertical Analysis of Balance Sheets Consolidated balance sheets for Winged Manufacturing follow. ...
A: In preparing common size balance sheet for vertical analysis, each item is represented as a percenta...
Q: On January 1, 20x1, ABC Co. sold machinery costing P3,000,000 with accumulated depreciation of P1,10...
A: Lets understand the basics. When asset is sold in exchange of non interest bearing notes then amount...
Q: In 2020 a vat registered real estate dealer sold a residential lot for P1,919,500 to a vendee who in...
A: Under the TRAIN Law this is applied only the property which to sale of real properties not primarily...
Q: Can you help me with this question
A: The question requires entry on March 1 and March 20 March 1 : The day fund was established March 20 ...
Q: Luthan Company uses a plantwide predetermined overhead rate of $22.50 per direct labor-hour. This pr...
A: Formula: Manufacturing overhead cost applied to all jobs = Actual direct labor hours x Predetermined...
Q: JSC Company reported accounts receivable P8,000,000 on December 31, 2020 and allowance for doubtful ...
A: Estimated uncollectible accounts = Accounts receivable x Uncollectible accounts % Doubtful accounts ...
Q: a. Return on investment b. Owners' wealth C. Sales revenue
A: The financial objective of any business is usually growing in the profits and expansion of their bus...
Q: Consider Southeast Home Care, which is a for-profit business. In 2020, its net income was $1,500,000...
A: RE termed as Retained Earnings refers to the balance sheet account presented under section of equity...
Q: 31, 2021, Max Company committed to a plan to discontinue the fair value of the facilities was P1,000...
A: The loss from discontinued operations will include operating loss from operations and unrealized los...
Q: 3. A business is generating an annual income of $100,000 for the next ten years with a salvage value...
A: Answer) Calculation of amount to be paid today Amount to be paid today will be the Present Value of ...
Q: ARIZONA CORP. manufactured 1,000 units during April with a total overhead budget of P12,400. However...
A: Introduction: Fixed overhead is a collection of costs that do not change as a result of changes in a...
Q: When using the Indirect Method of preparing the Statement of Cash Flows, in the operating section, s...
A: Under indirect method , it is one of two accounting treatments used to generate a cash flow stateme...
Q: The film All the Queen's Horses documented a fraud that occurred in the town of Dixon, IL. The film ...
A: The film All the Queen's Horses documented a fraud that occurred in the town of Dixon, 1L. The fim u...
Q: Selected data from Design Corporation for 2016 is as follows: Inventories Beginning $34,000 135,000 ...
A: The calculation is given below
Q: Gene Grams is a 40% owner of a calendar year S corporation during the tax year. His beginning stock ...
A: When a stock is held for more than 12 months, the profit or loss on sale of such stock is long-term ...
Q: a. Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount ...
A: Solution :- Given, Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6.
Q: Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made th...
A: Allowable deduction under IRS is $5,000 each for organizational expenditures and for the start-up co...
The LL Company will issue shares of P10 par value common stock for all the assets and liabilities of the OO Company. LL Company’s common stock has a current market value of P40 per share. The OO Company’s net assets were as follows:
Current Assets 1,280,000
Non-Current Assets 3,520,000
Liabilities 1,600,000
The fair market value of the current assets is P1,600,000 while that of the non-current assets is 6,400,000. All of the liabilities are correctly stated. LL Company issued sufficient shares of stock so that the fair market value of the stock is equal the fair market value of OO Company’s net assets.
To have an income from acquisition of P400,000, the number of shares to be issued by LL should be?
Step by step
Solved in 2 steps
- The LL Company will issue shares of P10 par value common stock for all the assets and liabilities of the OO Company. LL Company’s common stock has a current market value of P40 per share. The OO Company’s net assets were as follows: Current Assets 1,280,000 Non-Current Assets 3,520,000 Liabilities 1,600,000 The fair market value of the current assets is P1,600,000 while that of the non-current assets is 6,400,000. All of the liabilities are correctly stated. LL Company issued sufficient shares of stock so that the fair market value of the stock is equal the fair market value of OO Company’s net assets. Referring to the previous item, To have a goodwill of P800,000, the number of shares to be issued by LL should be? 144,000 178,000160,000 180,000The ABC Company will issue shares of P 20 par value common stock for all the assets and liabilities of XYZ Company. ABC Company’s common stock has a current price of P 40 per share. The fair market value of the current assets of XYZ is P 800,000, while that of the PPE is P 3,200,000. The liabilities are 600,000. To have a gain from acquisition of P200,000 the amount of shares to be issued by ABC Company should be : 75,000 74,000 85,000 80,000On January 1, 2021, PingPing Corp. acquired all the assets and liabilities of Willy Corp. by issuing shares of P10 par value ordinary shares. PingPing Corp. shares has a market value of P40 per share. The statement of financial position of Willy Corp. as of January 1, 2021, is as follows: Current assets – P640,000; Equipment – P1,760,000; Liabilities – P800,000; Common shares (P4 par) – P160,000; Share premium – P640,000; Retained earnings – P800,000. The current assets and equipment have fair values of P800,000 and P3,200,000, respectively. PinPing Corp. issued sufficient number of shares so that the fair market values of the shares issued is equal to the fair market value of Willy Corp.’s net assets. How many ordinary shares should PingPing Corp. must issue to have a gain on bargain purchase of P200,000? *... a. 85,000 shares b. 74,000 shares c. 75,000 shares d. 84,000 shares pls. answer it asap. thank you
- Alex Ltd. Is taken over by Billy Ltd. On the following terms: The assets and liabilities of Alex Ltd, shall be valued at P3,000,000 and P1,000,000. P5,000 shall be paid in cash and the balance of consideration shall be discharged by issue of shares of P10 each at a premium of 50%. Show the Calculation of purchase consideration and state the number of shares issued to the shareholders of Alex Ltd.Teacher Inc. will issue share of P25-par ordinary share for the net assets of Student Co. Teacher Inc. ordinary share has a current market value of P50 per share. The balance sheet accounts of Student Co. are as follows: Current assets 400,000 Ordinary shares 100,000 PPE 900,000 Share premium 320,000 Retained Liabilities 500,000 380,000 earnings Student Co. current assets and PPE are appraised at Pó00,000 and P1.200,000 respectively. Accordingly, Teacher Inc. issued ordinary shares with the total market value equal to that of Student Co. net assets. To recognize a goodwill of P400,000, how many shares were issued?Peace Company issued common shares with a par value of $59,000 and a market value of $159,300 in exchange for 30 percent ownership of Symbol Corporation on January 1, 20X2. Symbol reported the following balances on that date: Assets Cash Accounts Receivable Inventory (FIFO basis) Land Buildings & Equipment SYMBOL CORPORATION Balance Sheet January 1, 20X2 Book Value Fair Value $ 57,000 86,000 137,000 $ 57,000 86,000 167,000 59,000 74,000 505,000 328,000 (245,000) 33,000 Less: Accumulated Depreciation Patent Total Assets Liabilities & Equities Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities $ 599,000 $ 745,000 $ 22,000 192,000 137,000 11,000 237,000 $ 599,000 $ 22,000 192,000 The estimated economic life of the patents held by Symbol is 4 years. The buildings and equipment are expected to last 6 more years on average. Symbol paid dividends of $15,000 during 20X2 and reported net income of $87,000 for the year. Required:…
- Fiona Company issued 21,500 ordinary shares with par value of P85 in exchange for land with a fair market value of 920,000 and a building with fair market value of P1,087,500. What is the amount to be debited for Share Premium-Ordinary?On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltdissued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of EldoradoLtd. The costs of issuing the shares by Quick Buck Ltd cost $1,600.At this date the statement of financial position of Eldorado Ltd was as follows: c Carrying amount Fair valueMachinery $40,000 $67,000Fixtures & fittings 60,000 68,000Vehicles 35,000 35,000 Current assets 10,000 12,000Current liabilities (16,000) (18,000)Total net assets…Virma Corporation sold to a subscriber 500 shares of its P30 par value common stock at P32 per share receiving a 30% down payment. In recording this transaction, A. Ordinary share will be credited in the amount of P15,000 B. Ordinary share will be credited in the amount of P16,000 C. Subscribed share capital will be credited in the amount of P15,000 D. Share premium will be credited in the amount of P4,500 Leon Corporation sold 500 shares of its P40 par value preferred stock for cash at P50 per share. In recording this transaction, there would be a A. Credit to preference share capital for P25,000 B. Credit to preference share capital for P20,000 C. Credit to subscribed preference share capital for P20,000 D. Credit to share capital in excess of stated value for P5,000 Luningning Corporation sold for cash 400 shares of preferred stock with a par value of P50 per share at P56 per share. Also, 600 shares of common stock with no…
- The company issued for P1,200,000 cash, 4,000 shares of P200 par value Preference share and 1,000 shares of P100 ordinary share. The preference and ordinary share have fair values of P220 and P120 per share, respectively on the date of sale. Record the transaction above in journal entry form.On January 1, 20x1, Patrick Corp. acquired the identifiable net assets of Jinky Corp. by paying cash of P1,500,000; issuing 50,000 ordinary shares with a market value of P60 per share. Patrick paid the broker’s fee of P25,000; cost if SEC registration of shares issued amounting to P2,000 and indirect cost of P5,000. The book values of assets of Patrick and Jinky are P15,200,000 and P2,500,000, respectively, and the book values of liability of Patrick and Jinky are P4,000,000 and P800,000. The book value reflects fair value of assets and liabilities except that the current asset of Patrick is overvalued by P200,000 and non-current asset of Jinky Corp is undervalued by P500,000. Patrick Corp. has estimated P400,000 representing cost of exiting the activity of Jinky Corp such as: cost of terminating employees and the cost of relocating terminated employees of Jinky. The agreement also provides that Patrick Corp shall pay cash on January 10, 20x1, equal 120% of the amount by which…On January 1, 20x1, Patrick Corp. acquired the identifiable net assets of Jinky Corp. by paying cash of P1,500,000; issuing 50,000 ordinary shares with a market value of P60 per share. Patrick paid the broker’s fee of P25,000; cost if SEC registration of shares issued amounting to P2,000 and indirect cost of P5,000. The book values of assets of Patrick and Jinky are P15,200,000 and P2,500,000, respectively, and the book values of liability of Patrick and Jinky are P4,000,000 and P800,000. The book value reflects fair value of assets and liabilities except that the current asset of Patrick is overvalued by P200,000 and non-current asset of Jinky Corp is undervalued by P500,000. Patrick Corp. has estimated P400,000 representing cost of exiting the activity of Jinky Corp such as: cost of terminating employees and the cost of relocating terminated employees of Jinky. The agreement also provides that Patrick Corp shall pay cash on January 10, 20x1, equal 120% of the amount by which…