Papilon Corporation acquired 90,000 shares of the 100,000
outstanding no-par ordinary share capital of Silicon Company...
Papilon Corporation acquired 90,000 shares of the 100,000
outstanding no-par ordinary share capital of Silicon Company for a
price of P1,200,000 on January 1, 2011 at the time when Silicon
Company had book and fair values as shown below. Papilon
Corporation also paid P96,000 direct acquisition costs in the form
of legal fees to outside consultants.
Ordinary Share Capital
P480,000
Accumulated Profits
600,000
Total net assets at book value
P1,080,000
Add: Differences between current fair value and book value
Inventories...
7.
On January 1, Year 5, FLA Company issued 6,300 ordinary shares
to purchase 9,000 ordinary...
7.
On January 1, Year 5, FLA Company issued 6,300 ordinary shares
to purchase 9,000 ordinary shares of MES Company. Prior to the
acquisition, FLA had 180,000 and MES had 10,000 ordinary shares
outstanding, which were trading at $5 and $3 per share,
respectively. The following information has been assembled for
these two companies just prior to the acquisition:
FLA Company
MES Company
Carrying
Amount
Fair Value
Carrying
Amount
Fair Value
Plant assets
$
60,000
$
70,000
$
20,000...
The statement of financial position of Soorkee Company as of
December 1, 2011 had book and...
The statement of financial position of Soorkee Company as of
December 1, 2011 had book and fair market values as shown
below:
Book Value
Fair Value
Current Assets
P240 000
P280,000
Land
20,000
100,000
Building and Equipment (net)
400,000
270,000
Patents
10,000
30,000
Total Assets
P670,000
P680,000
Liabilities
P250,000
P250,000
Ordinary Share Capital
100,000
Accumulated Profits
320,000
430,000
Total Liabilities and Shareholders’ equity
P670,000
P680,000
On December 1, 2011, Pulaskee Company purchased all of Soorkee
Company’s share for P600,000.
Required:...
On August 1, Year 5, A Company acquired 70 Percent of the common
shares of C...
On August 1, Year 5, A Company acquired 70 Percent of the common
shares of C Company for $700,000. On that date, the fair value of
C’s identifiable net assets was $600,000 and the book value of its
shareholders’ equity was $500,000
Assume that fair value enterprise method will be used for
valuation of subsidiary. What amount of non-controlling interest
should be reported on the balance sheet on the date of
acquisition?
$0
$150,000
$180,000
$300,000
Assume that Identifiable net...
On August 1, Year 5, A Company acquired 70 Percent of the common
shares of C...
On August 1, Year 5, A Company acquired 70 Percent of the common
shares of C Company for $700,000. On that date, the fair value of
C’s identifiable net assets was $600,000 and the book value of its
shareholders’ equity was $500,000
Assume that fair value enterprise method will be used for
valuation of subsidiary. What amount of non-controlling interest
should be reported on the balance sheet on the date of
acquisition?
$0
$150,000
$180,000
$300,000
Assume that Identifiable net...
The following are selected account balances from Cheela Company
and Jarjar Corporation as of December 31,...
The following are selected account balances from Cheela Company
and Jarjar Corporation as of December 31, 2018:
Cheela
Jarjar
Revenues
P 980,000
P 560,000
Expenses
560,000
420,000
Dividend Income
84,000
Dividends Paid
112,000
84,000
Accumulated profits, 1/1/18
840,000
280,000
Current Assets
560,000
700,000
Building (net)
1,260,000
560,000
Equipment (net)
840,000
1,400,000
Investment in Jarjar Corp.
?
Liabilities
700,000
1,932,000
Ordinary Shares
840,000
(P20 par)
280,000
(P10 par)
Share Premium
210,000
112,000
On January 1, 2018, Cheela acquired all of...
Princeton Company acquired 75 percent of the common
stock of Sheffield Corporation on December 31, 2011....
Princeton Company acquired 75 percent of the common
stock of Sheffield Corporation on December 31, 2011. On the date of
acquisition, Princeton held land with a book value of $150,000 and
a fair value of $300,000; Sheffield held land with a book value of
$100,000 and fair value of $500,000. What amount would land be
reported in the consolidated balance sheet prepared immediately
after the combination?
a.$650,000
b.$500,000
c.$550,000
d.$375,000
On January 1, 2011, Primer Corporation acquired 80
percent of...
The following are selected account balances from Cheela Company
and Jarjar Corporation as of December 31,...
The following are selected account balances from Cheela Company
and Jarjar Corporation as of December 31, 2018:
Cheela
Jarjar
Revenues
P 980,000
P 560,000
Expenses
560,000
420,000
Dividend Income
84,000
Dividends Paid
112,000
84,000
Accumulated profits, 1/1/18
840,000
280,000
Current Assets
560,000
700,000
Building (net)
1,260,000
560,000
Equipment (net)
840,000
1,400,000
Investment in Jarjar Corp.
?
Liabilities
700,000
1,932,000
Ordinary Shares
840,000
(P20 par)
280,000
(P10 par)
Share Premium
210,000
112,000
On January 1, 2018, Cheela acquired all of...
Prepare a consolidated workpapers and journal enteries for the
following scenarios: Include calculations
Parent Corporation acquired...
Prepare a consolidated workpapers and journal enteries for the
following scenarios: Include calculations
Parent Corporation acquired a 70 percent interest in Subsidiary
Corporation’s outstanding voting common stock on January 1, 2011,
for $735,000 cash. The stockholders’ equity of Subsidiary on this
date consisted of $750,000 capital stock and $150,000 retained
earnings. The difference between the fair value of Subsidiary and
the underlying equity acquired in Subsidiary was assigned $7,500 to
Subsidiary’s undervalued inventory, $21,000 to undervalued
buildings, $31,500 to undervalued...
On January 1, 2011, Petron Corporation acquires the net assets
of the Shell Corporation for P625,000...
On January 1, 2011, Petron Corporation acquires the net assets
of the Shell Corporation for P625,000 cash. Prior to the business
combination, Shell Corporation has the following statement of
financial position:
Shell Corporation
Statement of Financial Position
January 1, 2011
Assets
Liabilities and Equity
Current assets:
Current Liabilities
P 62,500
Accounts Receivable
P150,000
Shareholders’ equity:
Inventories
125,000
P275,000
Ordinary Share
Property, Plant, and
Capital, P10
par
P250,000
Equipment
350,000
Accumulated Profits
312,500
562,500
Total...