What amount should Carsen record as investment in associate for the year ended December 31, 2019?
Q: Slip Heel Ltd manufactures two types of shoes in its factory. A typical monthly budget is as follows...
A: Total wages = Payment for unproductive time + Payment for operative time Unavoidable non - producti...
Q: Which of the following is not a benefit of budgeting? It is a basis for performance evaluation. It a...
A: Budgeting is a process of preparing a plan to estimate the expenses and income of an organisation ov...
Q: Amy Dyken, controller at Whispering Pharmaceutical Industries, a public company, is currently prepar...
A: Convertible Bond: A convertible bond, convertible note, or convertible obligation is a kind of bond ...
Q: Depreciation and Rate of Return Burrell Company purchased a machine for $47,000 on January 2, 2019. ...
A: Solution Depreciation represents the reduction in the value of asset and indicate how much of asset ...
Q: When Danny withdrew from John, Daniel, Harry, and Danny LLP, he was paid P80,000, although his capit...
A:
Q: The company is desirous of comparing serval financial transactions and possible outcomes to assist i...
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued i...
Q: Meade Market purchased produce from Bedner's Farm on credit for $3,000. Meade was charged $200 in tr...
A: Total cost of produce inventory = Purchase costs - Purchase return - purchase discount + Transportat...
Q: A company uses an overhead absorption rate of £6·50 per labour hour, based on 40,000 budgeted labour...
A: Absorbed Overheads = Overhead Absorption Rate x Actual Labor Hours
Q: 2. The following information has been assembled to assist in preparing a cash budget for the quarter...
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. % ar...
Q: Eberle Ltd. uses direct labour cost as a basis for computing its predetermined overhead rate. In com...
A: Predetermined Overhead rate when calculated based on labor cost is determined as :- O/H rate = Est...
Q: At the beginning of the month raw materials inventory was £30,000, during the month £257,000 of raw ...
A: GIVEN At the beginning of the month raw materials inventory was £30,000, during the month £257,000...
Q: A company reports the following: Sales $1,460,000 Average accounts receivable (net) 100,000 Determi...
A: a. Accounts receivable turnover = Net sales / average accounts receivable Accounts receivable turnov...
Q: Y Corp. had Net Receipts of 1,000,000.0o. The actual entertainment, amusement and recreation expense...
A: The entertainment, amusement and recreation expenses are the expenses which are incurred in the cour...
Q: A deferred tax liability or asset that is related to an asset or liability shall be classified in th...
A: The answer for the question on deferred tax liability or asset is discussed hereunder : What is defe...
Q: Illustration - "expected value" method An entity sells goods with a warranty under which customers a...
A: Expected value is computed by each of the possible outcome (i.e. amount of repair costs) by the like...
Q: Last Year, Omegle Company produced 25,000 juicers and sold 26,500 juicers for P60 each. The actual v...
A: The ending inventory in the financial statement is based on the product cost. So selling expenses ar...
Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue pr...
A: The question is related to the True and Flase.
Q: ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year...
A: Consolidated financial statements are a set of financial statements prepared for a group company inc...
Q: Under a noncontributory plan, only the employee makes contributions to the retirement benefit plan. ...
A: Under a non contributory pension or defined benefits plan, only an employer contributes and no contr...
Q: In 2022, Amber Wilson, owner of Canyon Canoe Company, started a new company that will be operated as...
A: Shareholders Equity Stockholders Equity which is comprises of preference and common stock and the de...
Q: Entries for bond (held-to-maturity) investments Gillooly Co. purchased $81,000 of 8%, 12-year Lumpki...
A: a. Entry on purchase of bond on May 11 plus 40 days of accrued interest. Date Account title and e...
Q: During the measurement period, which of the following may affect the amount of goodwill from busines...
A: Measurement period is the period after the acquisition date in which acquirer can adjust the provisi...
Q: The factors used to compute depreciation expense are an asset's: O Cost, residual value, and service...
A: Depreciation expense is the amount which shows the decrease in the value of asset over its useful li...
Q: S.A.Q 1.5 ACTIVITY 4: Freight Kim Taehyung paid for P3,000 freight for the goods he purchased from H...
A: FOB shipping point FOB shipping point means that the ownership is transferred to the buyer when the ...
Q: Bursey Company uses a standard cost system. Manufacturing overhead is applied to units of product on...
A: The predefined overhead rate is determined at the start of each fiscal year and is computed as the e...
Q: Required information [The following information applies to the questions displayed below.] Trey Mons...
A: Under FIFO Method, using perpetual inventory system, value of inventory is calculated at the end of ...
Q: 1. Answer the following questions for Steve. 2. Explain the corporate characteristic termed “no m
A: A corporation is a legal entity that is separated from its owners and has the same rights and respon...
Q: Quarterly income tax payments made by a non-resident citizen taxpaye nay be claimed as O neither a n...
A: Tax credit means amount can be substrate from total payable tax and offset overall liabilities.
Q: Sheffield Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning De...
A: The financial statement which shows the assets, liabilities and shareholder's equity of the particul...
Q: Which of the following audit engagements is least likely to be performed by internal auditors solely...
A: Which of the following audit engagements is least likely to be performed by internal auditors solely...
Q: QT, Inc., and Elppa Computers, Inc., compete with each other in the personal computer market. QT ass...
A: Average inventory = Beginning inventory + Ending inventory 2 QT = ...
Q: Cost formula Information on Entity A's inventory of Product A is as fóllows: Units Total Cost P 58,6...
A: Solution: Under FIFO method of inventory costing, units purchased first is considered as sold first....
Q: On January 1, 2024, Lanny, Inc. purchased a copyright for $410,000 cash. The copyright is expected t...
A: Formula: Depreciation expense = ( Asset cost - Salvage value ) / Useful life
Q: Determine the activity rates for each activVity. Fabrication %4 per direct labor hour Assembly %$4 p...
A: Activity based costing uses different activity based on which the costs has been incurred. The activ...
Q: Match the type of cost shown in the left column with the corresponding description shown in the righ...
A: 1. Irrelevant Cost - (B) A cost that is not pertinent to a particular decision. 2. Future Outlay ...
Q: STARS Company reported net income for the current year 2021 before taxes is P4,288,000. The followin...
A: Tax payable: The amount of tax required to be paid by the taxpayer every year is called tax payable....
Q: Although he has enough to start the business now as a partnership, he believes cash flow may be an i...
A: corporation is such a form of business that is started requireds rules and regulation to be followed...
Q: A man is considering investing P500, 000 to open a semi-automatic auto-washing business in a city of...
A:
Q: Year Cost Market Value Unrealized Gain / (Loss) 2020 GKKB P25,250 P23,350...
A: Jounral Entry Here provide the journal entries which are made the investment in the different compan...
Q: The December 31, 2021 adjusted trial balance section of Premier Construction's work sheet is below A...
A: Closing Entries - Closing entries are required to close the temporary accounts after making financi...
Q: Accounts receivable Accounts payable Buildings $ 18,000 Long-term notes payable 11,000 Office suppli...
A: Formula: Current ratio = Current Assets / Current liabilities.
Q: Question 3 The Framework's purpose is to assist the IASB in developing and revising IFRSS that are b...
A: The conceptual framework for financial reporting by IASB provides objectives, characteristics, and g...
Q: ABC Company has several subsidiaries that are included in its consolidated financial statements. In ...
A: Inter Company Balances Debit Credit Current Receivable due from Main Co $ 32,000 No...
Q: ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year...
A: Carrying amount of bonds with XYZ = P1075000 75% x 1075000 =P806250
Q: 1. Compute the overall effect of these transactions on the store's reported income for 20X5. 2. Why ...
A: Adjustment entries are those entries which are made by the accountant or the accounts officer at the...
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to productio...
A: Solution... Standard rate = $17 per hour Actual rate = $18 per hour Standard hours = 24,000 un...
Q: Accounting Problem 9. A taxpayer deducted P500 interest expense in 2017 but failed to pay the same d...
A: Tax liability: Tax liability is the amount of levy imposed on the incomes of the taxpayers in accord...
Q: The costs most relevant to be used in decision making are: a. sunk costs O b. current costs O c. est...
A: Cost: It implies to the expense that is incurred on the manufacturing of a product or rendering serv...
Q: What is the correct cash balance for the company? O $7,150. O $7,650. O $7,250. O $5,150.
A: Please see Step 2 for required information.
Q: Novak Company’s net income for 2020 is $594,000, and 91,000 shares of common stock were issued and o...
A: Diluted Earning Per Share: If all convertible securities were converted, the company's profits per s...
On January 1, 2018, Carsen Company purchased 25,000 shares of the 100,000 outstanding shares of Garrison Company for a total of P2,000,000. At the time of purchase, the book value of Garrison Company's equity was P6,000,000. Garrison Company assets having a market value greater than book value at the time of the acquisition were as follows:
|
Book Value |
Market Value |
Remaining Life |
Inventory |
P800,000 |
P1,000,000 |
Less than 1 year |
Equipment |
4,000,000 |
4,500,000 |
5 years |
Land |
200,000 |
700,000 |
Indefinite |
|
0 |
800,000 |
Indefinite |
Garrison Company's net incomes in 2018 and 2019 were P1,400,000 and P1,600,000 respectively. Dividends per share paid by Garrison Company amounted to P4 in 2018 and P5 in 2019. The inventory was sold in 2018 while the land was sold at the end of 2019 at a gain on sale of P50,000.
What amount should Carsen record as investment in associate for the year ended December 31, 2019?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded assets and liabilities of XYZ Corporation on July 1, 2022, immediately before the acquisition are as follows: Cash P 800,000 Inventory 2,400,000 Property and equipment, net 4,800,000 Liabilities 1,800,000 On July 1, 2022 it was determined that the inventory of XYZ had a fair value of P1,900,000, and the property and equipment, net had a fair value of P5,600,000. What is the amount of goodwill (gain on bargain purchase) that will be reported in the books of ABC?On January 1, 2020, West Corporation purchased 80% of the common stocks of Fast Company. Separate balance sheets for the companies at acquisition date are as follows: West Corp Fast Co. FMV Cash P 12,000 P 119,000 Accounts recei vable 72,000 13,000 Inventory 66,000 19,000 29,000 230,000 120,000 140,000 Plant assets, net (remalning life 5 years) Investment In Fast 196.000 Total assets P 615,000 P 271,000 Accounts payable P103,000 71,000 Capital stock 400,000 150,000 Retained earnings 112,000 50,000 Total equities P 615,000 P 271,000 20. Goodwill (income) to be recorded by West Corp. oints 21. Total assets on the consolidated balance sheet nts 22. Non-controlling interest in net assets as of January, 2020On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. What amount shall be assigned to the minority interest on January 1, 2017? Group of answer choices Cannot be determined 66,000 56,250 68,000 PreviousNext
- Putin Company acquired the assets and assumed the liabilities of Joni Company on January 1, 2018, paying OMR 4,500,000 cash. Immediately prior to the acquisition, Joni Company's balance sheet was as follows: BOOK VALUE FAIR VALUE Accounts receivable 240,000 220,000 Inventory 290,000 320,000 Land 960,000 1,508,000 Buildings 1,020,000 1,392,000 Total 2,510,000 3,440,000 Accounts payable 270,000 270,000 Note payable 600,000 600,000 Common stock, $5 par 420,000 Other contributed capital…On January 2, 2020, Sheffield Company acquired 90% of the outstanding common stock of Wildhorse Company for $459,000 cash. Just before the acquisition, the balance sheets of the two companies were as follows: Sheffield Wildhorse Cash $630,000 $180,000 Accounts Receivable (net) 405,000 74,000 Inventory 275,000 130,000 Plant and Equipment (net) 980,000 210,000 Land 205,000 88,000 Total Assets $2,495,000 $682,000 Accounts Payable $248,000 $144,000 Mortgage Payable 150,000 100,000 Common Stock, $2 par value 1,030,000 190,000 Other Contributed Capital 590,000 55,000 Retained Earnings 477,000 193,000 Total Equities $2,495,000 $682,000 The fair values of Wildhorse's assets and liabilities are equal to their book values with the exception of land. Cash Accounts Receivable Inventory Plant and Equipment Land. Total Assets Liabilities Accounts Payable Mortgage Payable Total Liabilities Stockholder's Equity Noncontrolling Interest Common Stock SHEFFIELD COMPANY AND SUBSIDIARY Consolidated Balance…On August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which became a division of Southampton Co. Brighton Company reported the followir statement of financial position at the time of the acquisition: Brighton Company Statement of Financial Position Assets Equity and Liabilities Share capital- Plant assets (ne t) $1,350,000 $1,150,000 ordinary 235,000 Retained earnings Inventory Receivables 1,070,000 587.000 800,000 Accounts payable Cash 422.000 Total assets $2.807.000 Total equity and liabilities $2.807.000 An appraisal indicated that the fair value of the inventory was $372,000 and the fair value of the plant assets was $1,550,000. The agreed purchase price was $3,600,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2.550,000. The recoverable…
- Anthem Co. acquired 60% of the outstanding shares of Bethel Co. onJanuary 2, 2021. Anthem Co. acquired it at book value which is the sameas its fair value at the date of acquisition. Income Statement of AnthemCo. and Bethel Co. for 2022 are as follows:Anthem Co.Net Sales P875,000Cost of Sales 525,000Gross Profit 350,000Operating Expenses 105,000Operating Income 245,000Dividend Income 56,000Net Income P301,000Bethel Co. made sales to Anthem Co. of P112,000 in 2021 andP168,000 in 2022.Anthem Co. reported inventory on December 31, 2021 amounting toP70,000 of which 20% comes from Bethel Co. and inventory onDecember 31, 2022 amounting to P84,000 of which 30% comes fromBethel Co.Anthem Co. made sales to Bethel Co. of P273,000 in 2021 andP338,000 in 2022.Bethel reported inventory coming from Anthem Co. as of December31, 2021 and December 31, 2022 in the amount of P54,600 andP152,100, respectively.Anthem Co. uses 30% mark-up on cost and Bethel Co. uses 25%mark-up on cost for their selling…Peer, Inc. acquires 75 percent of Sea-breeze Corporation for P600,000 cash on January 1, 2016. The remaining percent of the Sea-breeze shares traded near a total value of 200,000 both before and after the acquisition date. NCI is measured on a full basis .On January 1, 2016, Sea-breeze had the following assets and liabilities: Book Value Fair Value Current Assets P 250,000 P 250,000 Land 100,000 100,000 Building (net) – 5-year-year life 400,000 350,000 Equipment (net) – 8-year life 300,000 400,000 Patent (10-year life) -0- 50,000 Accounts Payable (200,000) (200,000) Bonds Payable – 5-years (150,000) (175,000) Net P 700,000 P 775,000 Common Stock P 650,000 Retained Earnings P 50,000 The companies’ financial statements for the year ending December 31, 2016 using cost method are as follows: Peer Sea-Breeze Revenue P (800,000) P (250,000) Operating expenses…Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2018. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2018, Sea-Breeze had the following assets and liabilities: Book Value Fair Value Current assets $ 150,000 $ 150,000 Land 200,000 200,000 Buildings (net) (6-year remaining life) 300,000 360,000 Equipment (net) (4-year remaining life) 300,000 280,000 Patent (10-year remaining life) 0 100,000 Liabilities (400,000 ) (400,000 ) The companies’ financial statements for the year ending December 31, 2021, follow: Nascent Sea-Breeze Revenues $ (600,000 ) $ (300,000 ) Operating expenses 410,000 210,000 Investment income (42,000 ) 0 Net income $ (232,000 ) $ (90,000 ) Retained earnings, 1/1/21 $ (700,000 ) $ (300,000 ) Net income…
- Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2018. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2018, Sea-Breeze had the following assets and liabilities: Book Value Fair Value Current assets $ 150,000 $ 150,000 Land 200,000 200,000 Buildings (net) (6-year remaining life) 300,000 360,000 Equipment (net) (4-year remaining life) 300,000 280,000 Patent (10-year remaining life) 0 100,000 Liabilities (400,000 ) (400,000 ) The companies’ financial statements for the year ending December 31, 2021, follow: Nascent Sea-Breeze Revenues $ (600,000 ) $ (300,000 ) Operating expenses 410,000 210,000 Investment income (42,000 ) 0 Net income $ (232,000 ) $ (90,000 ) Retained earnings, 1/1/21 $ (700,000 ) $ (300,000 ) Net income…On 1 July 2020 P Ltd purchased 100% of the issued capital of S Ltd for a purchase price of $859,000. At that date the shareholders’ equity of S Ltd disclosed: Share capital $121,000 General reserve $50,000 Retained earnings $260,000 Additional information: At the date of acquisition, all net identifiable assets of Sub Ltd were recorded at fair value Sales by S to P Ltd were $67,000. P Ltd sold inventory of $109,000 to S Ltd on 1 July 2021. The original cost of this inventory to P Ltd was $53,000. S Ltd has 47% of this inventory on hand at 30 June 2022 Company tax rate is 30% Requirements: Provide all consolidation journal entries (including workings) in next part of this question Compute the amount of 'realised profit' of the inventory transaction above in the form of 'cost of goods sold' and enter the amount in the answer space belowPretzel Company purchased a 90% interest in Salt Corporation for $8,100,000 on January 1, 2023. Salt Corporation had $6,200,000 of common stock and $2,100,000 of retained earnings on that date. The following values were determined for Salt Corporation on the date of purchase: Inventory Land Equipment Book Value $220,000 6,200,000 1,920,000 Fair Value $280,000 6,520,000 1,900,000 Required: A. Prepare a computation and allocation schedule for the difference between the implied and book value at the date of acquisition. B. Prepare the January 1, 2023, workpaper entries to (1) eliminate the investment account and (2) allocate the difference between implied and book value.