7. Phil Co. acquires a controlling interest in Sill Co. for P600,000' in the open market. The P100 par ordinary share capital of Sill Co. at the time of acquisition is P625,000 and its Retained Eamings mounts to P250,000. Sill Co. shares are selling at P120 per share in the open market. 5000h The goodwill/ gain on bargain purchase arising from acquisition assuming NCI is measure at fair value is: a P100,000 - goodwill b. P100,000 – gain on bargain purchase c. P125,000 – goodwill d. P125,000– gain on bargain purchase Toral sh- wasv 100 Com si = Gook 8. The interest acquired by Phil Co. over Sill Co. is: (refer to #7) c. 80% d. 70% a 100 % b. 90% 9. The NCI if Phil opted to measure it at fair value is: (refer to #7) a P175,000 b. P50,000 c. P125,000 d. PI50,000

7. Phil Co. acquires a controlling interest in Sill Co. for P600,000' in the open market. The P100 par ordinary share capital of Sill Co. at the time of acquisition is P625,000 and its Retained Eamings mounts to P250,000. Sill Co. shares are selling at P120 per share in the open market. 5000h The goodwill/ gain on bargain purchase arising from acquisition assuming NCI is measure at fair value is: a P100,000 - goodwill b. P100,000 – gain on bargain purchase c. P125,000 – goodwill d. P125,000– gain on bargain purchase Toral sh- wasv 100 Com si = Gook 8. The interest acquired by Phil Co. over Sill Co. is: (refer to #7) c. 80% d. 70% a 100 % b. 90% 9. The NCI if Phil opted to measure it at fair value is: (refer to #7) a P175,000 b. P50,000 c. P125,000 d. PI50,000

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

1. Nicole Company acquires 75% of Carl John Company (CJC) for P6,000,000. The carrying and fair values of CJC’s net assets at the time of acquisition are P4,500,000 and P4,900,000, respectively.Required:a. Determine the goodwill or gain on bargain purchase from the above acquisition if the non-controlling interest (NCI) is to be valued on a proportionate basis. b. Determine the goodwill or gain on bargain purchase from the above acquisition if the NCI is to be valued on a fair value basis.2. The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the…
Company X acquired 100% of the voting shares of Company Y for $137,500 on 1/1/2022. The fair value of the net assets of Company Y at the date of acquisition was $150,000. This is an example of a(n): Select one: O O FELIC a. revaluation adjustment b. bargain purchase c. extraordinary loss d. positive differential id
1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date? 2. What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?
2. Banana Company purchases 80 percent of Mango. At the date of acquisition, Mango has revenue of P250,000 and expenses of P170,000. What amount of pre-acquisition earnings will be created on the consolidated income statement at the acquisition date? 3. Delta Corporation acquires 70 percent of Bravo Company’s stock. What amount of non-controlling interest is recognized on the acquisition date balance sheet if Telephone has the following account balances? Book Value Market Value Cash P10,000 P10,000 Inventory 80,000 80,000 Plant Assets (net) 350,000 350,000 Cost of Goods Sold 130,000 Depreciation Expense 20,000 Liabilities (110,000) (110,000) Common Stock (30,000) Retained…
4. A Co. acquired 60% of the outstanding ordinary shares of B Co. on January 2, 2022. A Co. acquired it at book value which is the same as its fair value at the date of acquisition. Statements of Comprehensive Income of A Co. & B Co. for 2022 are as follows: А Со. P218,750 131,250 P87,500 26,250 P61,250 В Со. P87,500 52,500 P35,000 13,125 P21,875 - 0 - P21,875 Net Sales Cost of Sales Gross Profit Operating Expenses Operating Income Dividend Revenue 14,000 P75,250 Net Income B Co. made sales to A Co. of P28,000 in 2021 and P42,000 in 2022. A Co. reported inventory on December 31, 2021 amounting to P17,500 of which 20% comes from B Co. and inventory on December 31,2022 amounting to P21,000 of which 30% comes B Co. A Co. uses 30% mark-up on cost and B Co. uses 25% mark-up on cost for their selling prices. A Co. & B Co. declared and paid dividends in 2022 amounting to P21,000 and P17,500, respectively. On January 1, 2022, B Co. has ordinary shares of P80,000; Share Premium of P30,000 and…
1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date?
Petro Ltd acquired 60% of Carlos Ltd's 500,000 R1 equity shares on 1st January 2019 for a consideration of R5 cash per share. At the date of acquisition, net assets and liabilities in Carlos Ltd were valued at R1,600,000 and the fair value of the non-controlling interest was R800,000. Required: 1. 2. Method 3. Determine the acquisition date. Calculate goodwill or gain on bargain purchase if any using Proportionate of Net Assets Calculate goodwill or gain on bargain purchase if any using Fair Value Method
Petro Ltd acquired 60% of Carlos Ltd’s 500,000 R1 equity shares on 1st January 2019 for a consideration of R5 cash per share. At the date of acquisition, net assets and liabilities in Carlos Ltd were valued at R1,600,000 and the fair value of the non-controlling interest was R800,000.Required:1. Determine the acquisition date.2. Calculate goodwill or gain on bargain purchase if any using Proportionate of Net Assets Method3. Calculate goodwill or gain on bargain purchase if any using Fair Value Method
If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par valueshares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash andpaying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respective.REQUIREMENTS: Goodwill and Consolidated Total Assets at the date of acquisition
hf. Darnell Ltd. acquired 60 percent of Tisha Co. The acquisition calls for Darnell to issue an additional 100 shares to Tisha in one year if Tisha meets a predetermined sales goal. This contingent consideration a. should be reported only in the notes to the financial statement. b. should be valued at its fair value as of the acquisition date. c. should be valued at fair value as of the acquisition date and revalued at the year-end. d. should not be reported unless the goal is met.
Company X acquires 100 percent of the voting shares of Company Y for $275,000 on December 31, 2008. The fair value of the net assets of Company X at the date of acquisition was $300,000. This is an example of a(n): Select one: a. extraordinary loss b. revaluation adjustment c. bargain purchase d. positive differential
Que Two Petro Ltd acquired 60% of Carlos Ltd’s 500,000 R1 equity shares on 1st January 2019 for a consideration of R5 cash per share. At the date of acquisition, net assets and liabilities in Carlos Ltd were valued at R1,600,000 and the fair value of the non-controlling interest was R800,000. Required: 1. Determine the acquisition date. 2. Calculate goodwill or gain on bargain purchase if any using Proportionate of Net Assets Method 3. Calculate goodwill or gain on bargain purchase if any using Fair Value Method