Nag 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?
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Nag 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
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- M Inc. acquired 100% voting rights in K Co. by contract alone. No consideration was transferred on the arrangement. K’s net identifiable assets have fair value of Php1,800,000. M Inc. measures the NCI at proportionate share. How much is the goodwill?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: Compute for the goodwillIf 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
- Acquirer Limited purchased 75 per cent of Subby Limited for $45 000. The fair value of identifiable assets was $95 000, and the fair value of liabilities and contingent liabilities amounted to $47 000. According to AASB 10, what would be the amount of 'goodwill allocated to non-controlling interests of Subby Limited'?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-800,000Cloud Co. acquired an investment in Sky Co., a joint venture, for P100,000, incurring transaction costs of P1,000. Cloud Co. determined that it has joint control over Sky. Cloud Co. uses the PFRS for SMES and elects the cost model for its investments in joint ventures. The investment's fair values were P102,000, P110,000 and P90,000 on December 31, 20x1, 20x2 and 20x3, respectively. Costs to sell were estimated at P4,000 throughout. Cloud Co. recognizes in its profit or loss which of the following amounts? gain (loss) 20x1 20x2 20x3 a. 0 b. (1,000) с. (3,000) d. (3,000) 8,000 8,000 3,000 (20,000) (20,000) (15,000)
- 1. When goodwill is acquired by an investor in an associate, the amortization of goodwill is: A. spread evenly across the useful life of the investment; B. not permitted; C. included in the determination of the investor’s share of the associate’s profit or loss; D. included in the revaluation of the investment. 2. Ginowan Limited acquired a percentage of shares in Juliano Limited for P18 000. Gunawan Limited has no other investments. At the date on which it became an associate, Juliano Limited had the following equity: Share capital P50 000 Retained earnings P40 000 At the end of the financial year following the investment, Juliano Limited generated a profit of P6 000. After applying the equity method of accounting, Gunawan Limited will have the following carrying amount for the investment: A. P19 200 B. P18 000 C. P16 800 D. P9 200.On 1 November 2020, Bermuda Ltd acquired all the assets and fiabilities (other than cash) of Triangle Ltd. The details on the assets and liabilities of Triangle Ltd were as follows: Carrying Fair Value Amount Cash 30,000 30,000 Equipment 120,000 140,000 Accounts Receivable 25,000 25,000 Furniture 35,000 25,000 Accounts Payable 10,000 10,000 Income tax 19,000 19,000 Payable Annual Leave 14,000 14,000 Payable In addition to the above items Triangle Ltd had an internally generated brand name with a fair value of $75,000 that was not recognised in its accounts. The consideration Bermuda Ltd paid to Triangle Ltd was $80,000 cash and 20,000 shares. The fair value of each Bermuda Ltd share is $10. Bermuda Ltd paid $20,000 in acquisition to ic 30%Hobbes Corporation’s purchase of stock of Tiger Company gave Hobbes voting control over Tiger. A portion of the amount Hobbes paid reflects the fact that Tiger's inventories have a market value in excess of their book value.How should this portion of the cost be accounted for by Hobbes Corporation? Select one: a. Reported as goodwill on the balance sheet of Hobbes Corporation b. Amortized against investment revenue over the remaining useful life of the investment c. Included in the carrying value of the investment until disposition of the stock d. Added to the inventory cost on Hobbes's consolidated balance sheet
- How does joint control differ from control as applied on consolidation? Oceania Limited acquired 100% of the share capital of Broadwater Limited. Broadwater had total shareholder's equity of $500 000. The book values of Broadwater Limited's assets were: buildings $300 000, machinery $180 000. The fair values of these assets were: buildings $360 000, machinery $200 000. The tax rate is 30%. The fair value of the identifiable net assets is: a. $580 000 b. $420 000 c. $556 000 d. $444 444What 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?A and B are merged. A is the acquiring firm, B is the acquired firm. The recorded value of B’s assets is 300.000.000 TL, liabilities of B is 140.000.000 TL. A paid 200.000.000 TL to merge with B. How much is the goodwill? Select one: 160.000 240.000 40.000 440.000.