Business combination withc
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- After the business combination on the basis of full-goodwill approach, what amount of stockholders' equity will be reported? a. P355,000 b. P397,000 c. P419,500 d. P495,000If 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 acquisitionCase 2: Non-Controlling Interest measured at fair valueInahan Co. elects the option to measure the non-controlling interest at fair value. However, no independent consultant were engaged. Inahan paid P 1,500,000.00 cash and P 750,000.00 land with fair value of P 1,000,000.00 as consideration for the 75% interest in Bunso, Inc. 1.How much is the transaction costs incurred during the business combination?a. 65,000.00b. 125,000.00c. 190,000.00d. 250,000.00 2.How much is the Consideration Transferred by Inahan for its interest in Bunso?a. 750,000.00b. 2,250,000.00c. 2,500,000.00d. 3,250,000.00 3.How much is the Non-Controlling Interest in the acquiree?a. 0.00b. 600,000.00c. 652,500.00d. 833,333.33
- D6) ABD was acquired by CAP when net assets of the former were £x. In line with group policy, the property was revalued by £y at the time of acquisition. CAP paid £z buying 80% of ABD. Calculate the non-controlling (minority) interestsNag Co. acquired 100% voting rights in Sag Co. by contract alone. No consideration was transferred on the arrangement. Sag's net identifiable assets have a fair value of P1,800,000. Nag measured the NCI at 'proportionate share. How much is the goodwill?Case 2: Non-Controlling Interest measured at fair valueInahan Co. elects the option to measure the non-controlling interest at fair value. However, no independent consultant were engaged. Inahan paid P 1,500,000.00 cash and P 750,000.00 land with fair value of P 1,000,000.00 as consideration for the 75% interest in Bunso, Inc 1.How much is the previously held equity interest in the acquiree?a. 0.00b. 600,000.00c. 652,500.00d. 833,333.33 2.How much is the fair value of the net identifiable assets acquired?a. 4,560,000.00b. 2,610,000.00c. 3,110,000.00d. 2,810,000.00 3.How much is the goodwill (gain on bargain purchase) on the business combination? a. 490,000.00b. 542,500.00c. 723,333.33d. 750,000.00
- 12. What would be the effect profit or loss if the accumulated other comprehensive income represents revaluation gain (rather than translation gain) and Lim Co. retains significant influence over Teg Co. after the sale? C. d. (Adapte a. 175,000 b. 200,000 c. 225,000 d. 275,000 15. Jo Jol 13. Sun Co. accounts for its 8% interest in the 100,000 outstanding shares of Day Co. as held for trading securities. The investment has a carrying amount of P800,000 on Jan. 1, 20xl. in Investr InvestAfter the business combination on the basis of full-goodwill approach, what amount of non-controlling interest will be reported? a. P42,000 b. P52,500 c. P60,900 d. P64,500If the unrealized profit of sales from parent to a subsidiary is GHC2,000 and NCI in the subsidiary has 30% share interest, what amount of the unrealized profit is chargeable to the group's retained earnings? DA GHC2.000 B. GHC1400 OC GHC600 D. GHCO
- 1. what is the basis for consolidation?2. is goodwill being remeasured to fair value at each reporting period? if false, what is the correct answer?3.a. Before consolidation, entity A's retained is how much? 3.b.he consolidated earning is how much?this is the scenario for #3a and b:entity A acquired 90% interest in ENtity B on January 1, 20x1 when entity B's net assets had a fair value of 100. On December 31, 20x2, Entity B's net assets increased to 200 after adjustments for acquisition date fair values, net of depreciation.Case 3: Non-Controlling Interest measured at proportionate share in net assetsInahan Co. elects the option to measure the non-controlling interest at the non-controlling interest’s proportionate share of Bunso, Inc.’s net identifiable assets. Inahan paid P 1,500,000.00 cash and P 750,000.00 land with fair value of P 1,000,000.00 as consideration for the 75% interest in Bunso, Inc. 1.How much is the transaction costs incurred during the business combination?a. 65,000.00b. 125,000.00c. 190,000.00d. 250,000.00 2.How much is the Consideration Transferred by Inahan for its interest in Bunso?a. 750,000.00b. 2,250,000.00c. 2,500,000.00d. 3,250,000.00 3.How much is the Non-Controlling Interest in the acquiree?a. 0.00b. 600,000.00c. 652,500.00d. 833,333.33AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acq uisition of interest. Their condensed Statement of Financial Position before the combination show: ВBB Cогр. 88,000 420,000 1,119,600 1,040,000 260,000 171,600 AAA Inc. Cash Accounts Receivable, net Inventory Property Plant and Equipment Patent Accounts Payable Mortgage Payable Capital Stock, par P100 Share Premium Retained Earnings 88,000 500,000 1,700,000 4,654,000 1,000,000 1,704,000 2,600,000 390,000 1,248,000 1,300,000 390,000 1,066,000 As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant and equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA. purchases BBB's net asset for P4,000,000. Compute for the consolidated asset after acquisition.
