On January 1, 2010, P Company acquired the net assets of S Company for $1,580,000 cash. The fair value of S Co. identifiable net assets was $1,310,000 on this date. P Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (S Co.). The information for these subsequent years is as follows: Carrying value of SCo. Identifiable Net Assets $1,160,000 Fair Value S Co. Identifiable Net Assets $1,190,000 Present value of Future Cash Flows $1,390,000 Year 2011 2012 $1,400,000 $1,120,000 $1,210,000 * identifiable net assets do not include goodwill.

On January 1, 2010, P Company acquired the net assets of S Company for $1,580,000 cash. The fair value of S Co. identifiable net assets was $1,310,000 on this date. P Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (S Co.). The information for these subsequent years is as follows: Carrying value of SCo. Identifiable Net Assets $1,160,000 Fair Value S Co. Identifiable Net Assets $1,190,000 Present value of Future Cash Flows $1,390,000 Year 2011 2012 $1,400,000 $1,120,000 $1,210,000 * identifiable net assets do not include goodwill.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

for the year ending december 31 2019, settles inc. eanred an ROI of 8.8%. Sales for the year were 16 million and average asset turnover was 2.1. Average stockholder equity was 2.7 million. a. calculate settles margin and net inccome b. calculate settles return on equity
From the data below is calculate the gearing adjustment required under Current Cost Accounting Method : Opening Closing $ $ Convertible Debentures Bank Overdraft 200 240 120 160 Cash 20 60 Paid-up Share Capital Reserves 300 400 100 160 $ Cost of Sales Adjustment 40 Monetary Working Capital Adjustments 30 Depreciation Adjustment 10 Total of Adjustments 80
DIRECTION: Use the problem in solving the following requirementsInspiration Company had trading and nontrading investments held throughout 2014 and 2015. The nontrading investments are measured at fair value through other comprehensive income. The investments had a cost of P3,000,000 for trading and P3,000,000 for nontrading. The investments had the following fair value at year-end: December 31, 2014 December 31, 2015Trading 4,000,000 3,800,000Nontrading 3,200,000 3,700,000Prepare all journal entries for 2014 and 2015
Instrument Corp. has the following equity investments which were held throughout 2010-2011: Fair Value Cost 12/31/10 12/31/11 FVTOCI $300,000 $400,000 $420,000 FVTPL 300,000 320,000 380,000 What amount of gain or loss would Instrument Corp. report in its income statement for the year ended December 31, 2011 related to Its Investments and what amount is reported in its statement of financial position ended December 31, 2011 for its investments? S Investment gain and S
Use the following information for the next three questions. Instrument Corp. has the following investments which were held throughout 2015-2016: Cost P300,000 300,000 Fair Value 12/31/15 P400,000 320,000 12/31/16 P380,000 360,000 Trading Non-trading What amount of gain or loss would Instrument Corp. report in its income statement for the year ended December 31, 2016 related to its investments? a. P20,000 gain. b. P20,000 loss. c. P140,000 gain. d. P80,000 gain. 5. 6. What amount would be reported as accumulated other comprehensive income related to investments in Instrument Corp.'s statement of financial position at December 31, 2015? a. P40,000 gain. b. P60,000 gain. c. P20,000 gain. d. P120,000 gain.
Below are the ratio results for Abcom for the year 2022. Performance Operating margin -18.66% Asset turnover 0.16 Return on Capital Employed -7.64% Working capital Inventory days 88.88 days Debtor days 46.18 days Trade creditor days 68.11 days Liquidity Current ratio 0.30 Acid test 0.25 Solvency Interest cover -2.56 Shareholder's view Return on equity 7.16% Required; Analyse and interpret the meaning of these results.
Consider the following informationYear Profit Ending book value of assets Ending book value of debt1 $100 $1 030 $7202 $120 $1 060 $7403 $60 $1 000 $800At the end of year t, the company’s book value of assets and debt are $1 000 and $700, respectively. The analyst expects that after year t+3 profit will be $0 and the book values of assets and debts will not change from the prior year. The cost of equity (WACC) is 10 per cent. Calculate the present value of free cash flows for the end of each year.
Abacus Co., provided these data for 2020: Income from continuing operations 4,000,000 800,000 Unrealized gain on financial asset at FVPL Unrealized gain on equity investment at FVOCI 1,000,000 1,200,000 Unrealized loss on debt investment at FVOCI Loss on credit risk a financial liability at FVPL Unrealized gain on futures contract designated as cash flow hedge Net remeasurement gain on a defined benefit plan Translation loss on foreign operation Income from discontinued operations Revaluation surplus 300,000 400,000 600,000 200,000 500,000 2,500,000 How much should be reported as other comprehensive income for 2020?
Cream of Tomato Company has the following data available.Net income = $250,000Sales = $2.5 millionTotal asset turnover = 3Equity multiplier = 2.5Cream of Tomato does not have any preferred stock outstanding. Note that the equitymultiplier is defined as total assets to equity. Calculate the return on assets and return onequity for Cream of Tomato.
Total return on assets at December 2018 was: Equal or below 11% Between 12% and 24% Between 25% and 42% Equal or above 43% Not enough data provided to calculate it
Computational- Show your solution in good form 1. Information regarding Stone Co.'s portfolio of FVOCI securities is as follows: Aggregate cost as of 12/31/03 Unrealized gains as of 12/31/03 Unrealized losses as of 12/31/03 170,000 4,000 26,000 30,000 Net realized gains during 2003 At December 31, 2002, Stone reported an unrealized loss of P1,500 in other comprehensive income to reduce these securities to market. Under the accumulated other comprehensive income in stockholders' equity section of its December 31, 2003 balance sheet, what amount should Stone report?
MVP Co. provided these data for 2020: Income from continuing operations Unrealized gain on financial asset at FVPL Unrealized gain on equity investment at FVOCI Unrealized loss on debt investment at FVOCI Loss on credit risk of a financial liability at FVPL unrealized gain on futures contract designated as cash flow hedge NET remeasurement gain on a defined benefit plan Translation loss on foreign operation Income from discontinued operations Revaluation surplus P4,000,000 800,000 1,000,000 1,200,000 300,000 400,000 600,000 200,000 500,000 2,500,000 How much should be reported as comprehensive income for 2020?