If the fair value of a subsidiary's land was $100,000 and its book value was $90,000 when the parent acquired its 100 percent interest for cash, at what amount would the land be included in the consolidated balance sheet immediately after the acquisition? Would your answer be different if the parent had acquired an 80 percent interest? Use IFRS not GAAP.

If the fair value of a subsidiary's land was $100,000 and its book value was $90,000 when the parent acquired its 100 percent interest for cash, at what amount would the land be included in the consolidated balance sheet immediately after the acquisition? Would your answer be different if the parent had acquired an 80 percent interest? Use IFRS not GAAP.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 9DQ

See similar textbooks

Similar questions

Choose the letter of the correct answer: 1. What amount of allocated excess/purchase differential amortization is recognized in the consolidated financial statements subsequent to the subsidiary’s acquisition? A. The noncontrolling interest percentage ownership in the subsidiary B. 100 percent of the purchase differential amortization C. Allocated excess/purchase differentials are not amortized D. The parent percentage ownership in the subsidiary 2. What amount of allocated excess/purchase differential amortization is recognized in the consolidated financial statements subsequent to the subsidiary’s acquisition? A. Allocated excess/purchase differentials are not amortized B. The parent percentage ownership in the subsidiary C. The noncontrolling interest percentage ownership in the subsidiary D. 100 percent of the purchase differential amortization
TRUE OR FALSE: Indicate whether the statements are true or false. 1. Assuming the parent acquired 100 percent of the subsidiary’s stock and there are no purchase differentials, the investment income recorded by the parent in the current period will equal the subsidiary’s current net income recognized subsequent to the acquisition date. 2.
How much is the goodwill/gain on acquisition on the books of ABC? Using the same information but the fair value of the non-controlling interest is 112,750, how much is the goodwill/gain on acquisition? Using the same information, assuming the consideration paid includes control premium of 37,000 how much is the goodwill/gain on acquisition?
What is the non-controlling interest arising from the consolidation if it is to be computed using the full (fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000?
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
After 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. P64,500
1. From the data below, determine the goodwill/gain on acquisition? 2. From the data below, determine the total assets of Play Corporation after the acquisition? 3. From the data below, determine the total liabilities of Play Corporation after the acquisition?
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-800,000
Which of the following statements regarding the acquisition method of accounting for business combinations is/are correct? (i) It is applied only when the acquirer purchases 100% of the share capital of the acquiree (ii) It requires calculating goodwill (iii) It is applied at every balance sheet date subsequent to the date of acquisition
1. At the date of an acquisition which resulted to either goodwill or gain on bargain purchase, the acquisition method: A. Consolidates the subsidiary's assets and liabilities at book value. B. Consolidates the subisdiary's assets at fair value and libailities at book value. C. Consolidates the subsidiary's assets at book value and liabilities at fair value. D. Consolidates the subsidiary's assets and liabilities at fair value. 2. The consideration transferred in a business combination will most likely include which of the following? A. The transaction price in an arrangement that is primarily for the benefit of the acquirer or the combined entity. B. A contingent liability with an acquisition-date fair value but imposes an improbable outflow that the acquirer assumes in a business combination. C. The "off-market" value of a reacquired right. D. The acquisition-date fair value of a contingent consideration that is dependent upon the occurrence of a possible, but not probable,…
When an entity sells a non-current asset at a profit to another entity within the same group, which of the following adjustments is necessary on consolidation? Select one: a. Dr Asset, DR Gain on sale b. Dr Gain on sale, CR Asset c. Dr Gain on sale, CR Cash d. Dr Asset, CR Cash
Statement I: During the measurement period, the acquirer shall prospectively adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of acquisition date.Statement II: Controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to a parent. a. True, True b. False, False c. False, True d. True, False