Justin Company purchased a plant facility consisting of land and building from Joshua Company in exchange for 200,000 shares of Justin's share capital. On the acquisition date, Justin's shares had a closing market price of P65 on a stock exchange while its par value is P50. The plant facility was carried in Joshua's books at P3,000,000 for the land and P8,000,000 for the building at the exchange date. Current assessed values for the land and building, respectively are P4,500,000 and 7,000,000. How much should the Land be recorded in the books? (Answer should be two decimal places, no comma or peso sign) *
Q: Karlyn Company had the following property acquisitions during the current year: • Acquired a tract…
A:
Q: On January 2, 2018, Randy Corporation acquired a track of land that is to be sold in the ordinary…
A: GIVEN On January 2, 2018, Randy Corporation acquired a track of land that is to be sold in the…
Q: During 2020, the Tidel Company completed the following transactions related to its property, plant,…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for…
A:
Q: On June 30, 2021, ZAYN Co. acquired 75,000 of LIAM Co.'s 100,000 outstanding shares with par value…
A: Non-controlling interest refers to ownership of less than 50% of a company's stock which having less…
Q: Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1,…
A: Financial statements: Financial statements are condensed summary of transactions communicated in the…
Q: Prateroon's asset has a book value of P10,460,00 and a fair market value of P11,500,000 and the book…
A: Settlement in the form of cash: Estimated settlement value x Percentage of probability = P 200,000 x…
Q: Justin Company purchased a plant facility consisting of land and building from Joshua Company in…
A: Following is the answer to the given question
Q: Sullivan Corp. exchanged one of their buildings (Building 24), which, on the date of exchange, has…
A: Given that, Data of Building "24" original cost of $2,800,000 accumulated depreciation of $1,300,000…
Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…
A: Fair value of net identifiable assets = Fair value of identifiable assets - Fair value of…
Q: On January 1, 2020, Tam acquired 15% of outstanding common stocks of Tum at a price of P120,000 and…
A: On 01.01.2020, Tam acquired Tum outstanding common stocks = 15% Price = P120000 Cost of acquisition…
Q: Choose the correct. Dosmann, Inc., bought all outstanding shares of Lizzi Corporation on January 1,…
A: The explanation for the given options: a) The additional $110,000 payment is a reduction in…
Q: On February 1, 2018, the Xilon Corporation issued 50,000 shares of its nopar common stock in…
A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…
Q: Assume that the acquisition took place on January 1. What figures would appear in a consolidated…
A: Preparation of consolidated income statement are as follows:
Q: What is the capitalized cost of the acquired PPE if ABC Corp. made the following property…
A: At the time of acquiring fixed assets, purchase price paid along with all other costs which are…
Q: On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…
Q: Clegane Company had the following acquisitions of intangible assets in 2022: Franchise On…
A: Intangible Assets The Accounting of intangible assets is some what complicated in the Accounting…
Q: On January 1, 2022, De Lorean Company acquired 10,000 ordinary shares of Marty Company for P10 per…
A: As per International Financial Reporting Standard 9, the financial assets are measured at Fair…
Q: Pederson Company acquires the net assets of Shelby Company by issuing 100,000 of its $1 par value…
A: Calculation of net identifiable assets is as follows: Resultant table: Calculation of value of…
Q: On October 1, Takei, Inc. exchanged 8,000 shares of its ₱25 par value ordinary share for a parcel of…
A: Carrying value of land=No. of shares×Fair value per share
Q: On January 5, 2020, ABC Co. exchanged 8,000 shares of its P25 par value ordinary shares for a parcel…
A: The land and building held as investments are held to earn rent and increase in value but land and…
Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…
A: Working note: Computation of fair value of the previously acquired 15% common stock of K Company:…
Q: Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January…
A: Acquisition accounting is a set of formal guidelines which defines how assets liabilities,NCI and…
Q: Lexington Garden Supply pays $280,000 for a group purchase of land, building, and equipment. At the…
A: The question is related to Property, Plant and Equipment. The details of lump sum group purchase is…
Q: Palm Resorts acquired its 70 percent interest in Sun City on January 1, 2017, for $41,750,000. The…
A: Goodwill refers to the amount of intangible assets that arise from the acquisition and purchase of…
Q: Erica Company had the following property acquisitions during the current year: 1. Acquired a tract…
A: Since yo have posted the question with multiple subpart, we will solve the first three subpart for…
Q: Justin Company purchased a plant facility consisting of land and buildingfrom Joshua Company in…
A: According to GAAP principles, assets should be recorded at the fair value at the time of purchased.…
Q: Paula Company had the following property acquisitions during the current year: Acquired a tract of…
A: Acquistion of long term asset If Long term asset is acquired in exchange of non cash items, Fair…
Q: Empress Corporation had the following property acquisitions during the year 2018 October 1, 2018 ,…
A: The value of land is measured at the fair value of consideration transferred, the entity purchases…
Q: Acquired a tract of land with an existing building in exchange for 50,000 ordinary shares of P100…
A: The answer has been mentioned below.
Q: Weavile Company acquires 25% of Rhyperior Company's common stock for P380,000 cash and carries the…
A: SOLUTION- TOTAL FAIR VALUE ON ACQUISITION DATE = PURCHASE OF 25% SHARE + PURCHASE OF 55% SHARE +…
Q: Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2019, Parker, Inc., a U.S.-based firm, acquired 100 percent of Suffolk PLC located in…
A: As per International accounting standard 21, translating the trial balance or balance sheet of the…
Q: Goodman Company exchanges an asset with The Pryce Corporation. Details of the exchange are as…
A: In case of barter which has commercial substance, PPE has to be recorded at fair value of the asset…
Q: Adora Inc. acquired one hundred percent of Alvah Co. on January 1, 2018, at a price in excess of the…
A: Solution Equipment is a non-current or long term asset account which report the cost of Equipment.…
Q: On January 1, 2018, Brooks Corporation exchanged $1,183,000 fair-value consideration for all of the…
A: A)
Q: On December 1, Young Corporation exchanged 5,000 shares of its P25 par value common stock held in…
A: Common stock is a security that represents ownership in a company. Managers are appointed by common…
Q: Justin Company purchased a plant facility consisting of land and building from Joshua Company in…
A: Acquisition:- When one company acquires the shares of another company by paying purchasing…
Q: UP CAF Company acquired a property for speculation purposes with the intention of selling it at a…
A: Investment property should be recognized in the books of accounts at amount which is spent to…
Q: On January 1, 20X1, XYZ, Inc. purchased 70% of Set Corporation for $469,000. On that date the book…
A: Income from subsidiary in net income: Purchased 70 % of set corporation. Net income of $ 100000
Q: What is the capitalized cost of the acquired PPE if ABC Corp. made the following property…
A: A capitalized cost is an expense incurred on the purchase of the fixed assets. The fixed asset…
Q: On January 15, 2022, 5,000 share with par value of P 100 per share of MANE Company were issued in…
A: When assets are acquired in exchange for shares, the assets are recorded at the fair value of the…
Q: Senpai Company acquires 15% of Kohai Company's common stock for P600,000 cash and carries the…
A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…
Q: a) Prepare all required journal entries in good form on the books of both Bracebridge Incorporated…
A: The first question is answered for you. Please resubmit specifying the question number you want…
Q: Jasper Company acquired 80% of Fey Company at the beginning of the current year. Jasper paid…
A:
Q: On December 1, Young Corporation exchanged 5,000 shares of its P25 par value common stock held in…
A: When an assets is purchased in exchange of shares then such asset is recorded at the market value of…
Q: Giant acquired all of Small’s common stock on January 1, 2017, in exchange for cash of $770,000. On…
A: Consolidated financial statements are a set of financial statements prepared for a group company…
Q: Ocean, Inc. acquired 15% of River Co. on January 1, 2022 for $94,500 and appropriately accounted for…
A: The acquisition of another company's stock can be done by the company for two reasons: investment or…
Q: Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, on January 1,…
A:
Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…
A: Goodwill refers to the form of an intangible asset that reflects the overall reputation of the…
Step by step
Solved in 3 steps
- What is the capitalized cost of the acquired PPE if ABC Corp. madethe following property acquisitions on Jan. 1, 2021: a. Acquired a piece of land in exchange for its shares. The shareshave a total fair value of P5,000,000 while the fair value of theland is P5,100,000. b. Purchased a machinery on installment. The cash price isP800,000 while the installment price is P1,000,000. It requireda down payment of P200,000 and the balance payable everyJan. 1 for 4 years, starting in the year 2022.Karlyn Company had the following property acquisitions during the current year:• Acquired a tract of land with an existing building in exchange for 50,000 ordinary shares of P100 par value with a market price of P120 per share on the date of acquisition. The last property tax bill indicated assessed value of P2,800,000 for the land and P1,200,000 for the building. However, the land has a fair value of P5,500,000 and the building has no determinable fair value. Shortly after acquisition, the building was razed at a cost of P100,000 in anticipation of a new building construction.• Received land from a major shareholder as an inducement to locate a plant in the city. No payment was required but Karlyn Company paid P50,000 for legal expenses for land transfer. The land is fairly valued at P2,000,000.What is the total increase in land as a result of the acquisitionWhat is the capitalized cost of the acquired PPE if ABC Corp. madethe following property acquisitions on Jan. 1, 2021:a. Acquired a piece of land in exchange for its shares. The shareshave a total fair value of P5,000,000 while the fair value of theland is P5,100,000.b. Purchased a machinery on installment. The cash price isP800,000 while the installment price is P1,000,000. It requireda down payment of P200,000 and the balance payable everyJan. 1 for 4 years, starting in the year 2022. 1. What is the amount of Capitalized Cost?
- Karlyn Company had the following property acquisitions during the current year: • Acquired a tract of land with an existing building in exchange for 50,000 ordinary shares of P100 par value with a market price of P120 per share on the date of acquisition. The last property tax bill indicated assessed value of P2,800,000 for the land and P1,200,000 for the building. However, the land has a fair value of P5,500,000 and the building has no determinable fair value. Shortly after acquisition, the building was razed at a cost of P100,000 in anticipation of a new building construction. • Received land from a major shareholder as an inducement to locate a plant in the city. No payment was required but Karlyn Company paid P50,000 for legal expenses for land transfer. The land is fairly valued at P2,000,000. What is the total increase in land as a result of the acquisition?What is the capitalized cost of the acquired PPE if ABC Corp. madethe following property acquisitions on Jan. 1, 2021:-Acquired a piece of land in exchange for its shares. The shareshave a total fair value of P5,000,000 while the fair value of theland is P5,100,000.-Purchased a machinery on installment. The cash price isP800,000 while the installment price is P1,000,000. It requireda down payment of P200,000 and the balance payable everyJan. 1 for 4 years, starting in the year 2022. Question 1. What is the capitalized cost?Paula Company had the following property acquisitions during the current year: Acquired a tract of land and building in exchange for 50,000 ordinary shares of P100 par value with a market price of P120 per share on the date of acquisition. The last property tax bill indicated an assessed value of P1,200,000 for the land and P2,800,000 for the building. However, the land has a fair value of P2,000,000 and the building has a fair value of P3,500,000. Received land from a major shareholder as an inducement to locate the plant in the city. No payment was required but the entity paid P50,000 for legal expenses for land transfer. The land is fairly valued at P1,000,000. Acquired a welding machine with an invoice price of P3,000,000 subject to a cash discount of 10% which was not taken. The entity incurred cost of P50,000 in removing the old welding machine prior to the installation of the new one. Welding supplies were acquired at a cost of P150,000. What is the total increase in property,…
- Paula Company had the following property acquisitions during the current year: Acquired a tract of land and building in exchange for 50,000 ordinary shares of P100 par value with a market price of P120 per share on the date of acquisition. The last property tax bill indicated assessed value of P1,200,000 for the land and P2,800,000 for the building. However, the land has a fair value of P2,000,000 and the building has fair value of P3,500,000. Received land from a major shareholder as an inducement to locate a plant in the city. No payment was required but the entity paid P50,000 for legal expenses for land transfer. The land is fairly valued at P1,000,000. • Acquired a welding machine with an invoice price of P3,000,000 subject to a cash discount of 10% which was not taken. The entity incurred cost of P50,000 in removing the old welding machine prior to the installation of the new one. Welding supplies were acquired at a cost of P150,000. What is the total increase in property, plant…On January 15, 2022, 5,000 share with par value of P 100 per share of MANE Company were issued in exchange for the land. The land has a fair value of P 800,000 and the market value of the stock is P 150 per share. Prepare the journal entry on January 15, 2022 to record the acquisitionEmpress Corporation had the following property acquisitions during the year 2018 October 1, 2018 , Empress Corporation issued 50,000 shares of the P25 par treasury ordinary share for a parcel of land to be held for a future plant site. The treasury shares were acquired by Empress at a cost of P30 per share Empress' ordinary share had a fair market value of P40 per share on October 1, 2018. Empress received P50,000 from the sale of scrap when an existing structure on the site was razed . On November 30, 2018Empress received land from a major shareholder as an inducement to locate company office in the cityNo payment was required but the entity paid P50,000 for legal expenses for the land transfer. The land is fairly valued at P1,200,000 What is the total increase in land as a result of the acquisitions?
- On 1 July 2020, Big Ltd acquired all the issued share capital of Small Ltd for cash for an amount of $1,050,000. On the date of the acquisition, the statements of the financial position of both entities are as follows: Big Ltd ($) Small Ltd ($) Assets Cash 21,000 10,500 Accounts receivable 315,000 115,500 Land 420,000 210,000 Plant 1,680,000 1,050,000 Investment in Small Ltd 1,050,000 3,486,000 1,386,000 Liabilities Accounts payable 126,000 63,000 Loans payable 840,000 315,000 Shareholders’ equity Share capital 2,100,000 420,000 Retained earnings 420,000 588,000 3,486,000 1,386,000 Required: a.Calculate the goodwill on acquisition assuming all net assets of small Ltd are recorded in fair value. b.Prepare consolidation journal entries. c.Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, on January 1, 2013. On that date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Zeta at the point of the acquisition: Historical Cost Fair Value Cash and Receivabled 80,000 75,000 Inventory 145,000 200,000 Land 75,000 75,000 Plant & Equipment 450,000 350,000 Less: Accumulated Depreciation -170,000 Total Assets 580,000 700,000 Accounts Payable 50,000 50,000 Common Stock 100,000 Additional Paid i n Capital 60,000 Retained Earnings 370,000 Total Liabilities & Equity 580,000 Prepare the entry to record the above transaction.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