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- A and B are merged. A is the acquiring firm, B is the acquired firm. The recorded value of B’s assets is 300.000.000 TL, liabilities of B is 140.000.000 TL. A paid 200.000.000 TL to merge with B. How much is the goodwill? Select one: 160.000 240.000 40.000 440.000.5. Use the following information for the next three (3) questions: On July 1, 2021 Captain Universe Company declared as property dividends 10,000 shares held as investment in associate with carrying amount of P4,000,000. Cost of disposal is immaterial. Information on fair values is shown below: Date Fair Value July 1, 2021 P3,200,000 December 31, 2021 4,400,000 February 1, 2022 3,800,000 Questions: The entries on July 1, 2021 include all of the following except Group of answer choices A debit to retained earnings for P3,200,000 A debit to impairment loss for P800,000 A debit to non current asset held for disposal to owners for P4,000,000 A credit to property dividends payable for P3,200,000Do a to h with proper explanation 1. Assume the following data apply shortly after Python Co. acquires Snakes Co.: P Co. (000s) 450 S Co. (000s) Assets 200 Liabilities 250 125 CS 75 35 APIC/OCC 75 30 RE 50 10 P asset s have a fair value = 435k; S' identifiable assets have a P acquires 80% of S's outstanding voting S' assets include pre-acquisition fair value = 300k. stock for $160k cash. Goodwill of 20k, and P's assets (and S' liabilities) reflect a Loan P has made to S for 10k. The DOA consolidated Balance Sheet should show (hint:: your B/S should balance: a+b-c=d+e+f+g) : a. identifiable assets b. Goodwill (algebraic) liabilities C. d. Common Stock e. АPIC/ОСС f. RE g. Noncontrolling interest h. Differential
- XYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 b. P900,000 c. P90,000 d. P0 2. Assuming the fair value of the land is not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a. P810,000 b. P900,000 c. P90,000 d. P0 3. Assuming both the fair value of the land and the shares are not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a.P810,000 b. P900,000 c.P90,000 d. POXYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 P900,000 b. c. P90,000 d. P0 2. Assuming the fair value of the land is not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a.P810,000 B.P900,000 C.P90,000 d. P0 3. Assuming both the fair value of the land and the shares are not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land.* a.P810,000 b.P900,000 c.P90,000 d.POIf ABC Co. sold everything it owned and paid off all the company owed, the amount left over would represent ABC's ______. Question 42 options: A) revenue B) owners' equity C) liabilities D) goodwill E) assets
- N3. Preparing the [I] consolidation entries for sale of land Assume that during 2015 a wholly owned subsidiary sells land that originally cost $540,000 to its parent for a sale price of $600,000. The parent holds the land until it sells the land to an unaffiliated company on December 31, 2019. The parent uses the equity method of pre-consolidation bookkeeping.LO 3-3a 19. Assume that Chapman Company acquired Abernethy's common stock for $490,000 in cash. As of January 1, 2020, Abernethy's land had a fair value of $90,000, its buildings were valued at $160,000, and its equipment was appraised at $180,000. Chapman uses the equity method for this investment. Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021.9. KUNG AKO NA LANG SANA Company acquired land and building with fair value of P3,500,000 by issuing 30,500 shares with par value of P15 per share and quoted price of P75 per share. What is the initial cost of the land? A. 457,500 B. C. 1,800,000 D. 3,500,000 2,287,500 10. MR. Co. a VAT-registered business, acquired a piece of equipment for P84,000 on account. The purchase is inclusive of 12% VAT. The credit term for this transaction is 1/10, n30, but MR. Co. did not avail of the discount. MR. Co. also incurred P45,250 cost of training the personnel who will be operating the equipment and installation cost of P10,250. After one month, MR. Co. decided to redeploy the equipment to another location. MR. Co. incurred P10,500 in the relocation and reinstallation. The cost of the equipment is D. 94,910 A. 74,160 B. 119,410 C. 84,410
- 6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the transaction, the acquire had P800,000 of liabilities The assets of the acquiree at fair value were $1,900,000 for current assets and P1,600,000 for noncurrent assets. What is the amount of gain on bargain purchase? a. P 700,000 b. P-700,000 c. P 800,000 d. P-800,0002. Parent Company buys Sub Company. Sub Company has the following book and fair market values for their accounts as of the purchase. Balance Sheet of Sub Company Book Values Fair Values Assets Current assets $150 $150 Property, plant, and equipment (net) Copyright (net) 200 300 50 600 Sales contracts 350 Total Assets $400 $1,400 Liabilities Accounts payable $100 $100 Stockholders' Equity Common stock-$5 par value Additional paid-in capital Retained earnings Total Liabilities and Stockholders' Equity 50 50 200 $400 (1) Parent Company pays $400 cash and 50 shares of $10 par common stock, selling for $20 per share as of the business combination. Prepares a journal entry for this takeover for Parent Company. Sub Company dissolves after this event.If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: REQUIREMENTS:A. GoodwillB. Consolidated Total Assets at the date of acquisitionC. Consolidated Total Liabilities at the date of acquisitionD. Consolidated Equity at the date of acquisition
