Compute the total noncontrolling interest to be reported in theconsolidated balance sheet assuming the:(1)(2)(1)(2)parent company concept.economic unit concept.Parent company conceptEconomic unit conceptTotal Noncontrolling Interest Sheridan Company acquired an 80% interest in the commonstock of Pharoah Company for $1,541,700 on July 1, 2022.Pharoah Company's stockholders' equity on that date consistedof:Common stockOther contributed capitalRetained earnings$804,100404,900334,600Compute the total noncontrolling interest to be reported in theconsolidated balance sheet assuming the:

In parent company concept, non controlling interest will be calculated on net assets of the company…

Compute the total noncontrolling interest to be reported in the consolidated balance sheet assuming the: (1) (2) (1) (2) parent company concept. economic unit concept. Parent company concept Economic unit concept Total Noncontrolling Interest

Compute the total noncontrolling interest to be reported in the consolidated balance sheet assuming the: (1) (2) (1) (2) parent company concept. economic unit concept. Parent company concept Economic unit concept Total Noncontrolling Interest

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
1. On January 1, 2021 Dona Company purchased 10% of another entity's outstanding ordinary shares for P6,000,000. The investment classified as nonmarketable equity security and accounted for under the cost method. The following data pertain to investee's operations for 2021 and 2022: 2021 2022 Net income 3,000,000 4,000,000 Dividend paid none 9,000,000 What amount should Dona Company report as dividend income in its 2022 income statement?
On January 1, 2024, Coronado Company purchased 8,208 shares of Whispering Company's common stock for $124,000. Immediately after the stock acquisition, the statements of financial position of Coronado and Whispering appeared as follows: Assets Cash Accounts receivable Inventory Investment in Whispering Company Plant assets Accumulated depreciation-plant assets Total Liabilities and Owners' Equity Current liabilities Mortgage notes payable Common stock, $10 par value Other contributed capital Retained earnings Total (a2) Coronado $38,250 57,310 42,270 124,000 144,750 (56,310) $350,270 : Whispering $17,170 28,620 25,000 107,510 (19,510) $158,790 $17,080 40,190 111,980 $ 126,260 54,760 $350,270 Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. Parent Share $ $26,620 $ 102,600 16,790 12,780…
The Ludel Company acquired the net assets of the Girl Conrad Company on January 1, 2018, and made the following entry to record the purchases:Current assets P100,000Equipment 150,000Land 50,000Buildings 300,000Goodwill 100,000Liabilities 80,000Common stock, P1 par 100,000Paid-in capital in excess of par 520,0001. Assuming that additional shares on January 1, 2020 would be issued on that date to compensate for any fall in the value of Ludel common stock below P16 per share. The settlement would be to cure the deficiency by issuing added shares based on their fair value on January 1, 2020. The fair price of the shares on January 1, 2020 was P10.What is the additional number of shares issued on January 1, 2020 to compensate for any fall in the value of the stock? a. 60,000b. 100,000c. 10,000d. 160,000 2. The Jonnie Company owns 75% of the Junior Company. On December 31, 2020, the last day of the accounting period, Junior sold to Jonnie a non-current asset for P200,000. The asset…
On January, 2020, P Company acquired 90% of S Company in exchange for 5,400 shares of P10 par common stock having a market value of P120,600. P and S condensed balance sheet where as follows: Requirements: Compute the following:1. Partial goodwill on Jan. 1, 20202. Non-controlling interest (in net assets) on Jan. 1, 20203. Consolidated Retained Earnings, Jan. 1, 20204. Equity Holders of Parent - Retained Earnings, Jan. 1, 20205. In addition to the information, assuming that on Dec. 31, 2020, the following results were given: Dividends Paid Net IncomeP Company P 15,000 P 30,200S Company 4,000 9,400 Using cost method to record results of operations, compute the Investment balance on Dec. 31, 20206. Dividend income for 2020 using cost method.7. Non-controlling interest in Net Income on Dec. 31, 2020.8. Non-controlling interest on Dec. 31, 2020.9. Profit for the period attributable to Equity Holders of Parent on Dec. 31, 2020.10. Consolidated/Group Net Income on Dec. 31, 2020.11.…
INVESTMENT IN ASSOCIATE 1. On January 1, 2021 Dona Company purchased 10% of another entity’s outstanding ordinary shares for P6,000,000. The investment classified as nonmarketable equity security and accounted for under the cost method. The following data pertain to investee’s operations for 2021 and 2022:2021 2022Net income 3,000,000 4,000,000Dividend paid none 9,000,000 What amount should Dona Company report as dividend income in its 2022 income statement?
Taylor Company acquired the assets and assumed the liabilities of Swift Inc. on June 30, 2022. The consideration transferred by the acquirer were as follows: Cash amounting to P2,000,000. Issued 10,000 ordinary shares at P10 par with a market price of Issued 5 year interest bearing bonds payable with a face value of P3,000,000 with a nominal rate of 10% and effective interest of 12%. (use two decimal places for the present value factor) Acquisition related costs incurred were as follows: Legal fees amounting to P120,000, 70% of which is not yet Share issue costs paid amounted to P15,000. Bond Issue costs paid amounting to P120,000. The Balance Sheet of the two entities before acquisition were as follows: Taylor Company Swift Inc. Total Assets 16,500,000 5,235,000 Total Liabilities 2,500,000 500,000 Ordinary Shares 5,000,000 1,250,000 Share premium 1,500,000 750,000 Retained Earnings 6/30/22 7,500,000 2,735,000 It was…
On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Considerationincludes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equityof S Company is as follows: P. Company S CompanyOrdinary Share Capital 3,300,000 1,450,000Accumulated Profits 5,450,000 2,800,000Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assetsof S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years),P600,000. All other assets and liabilities are fairly valued.S Company sold an equipment to P Company for P200,000 carried in S’s book at P120,000 on July 1, 2022;remaining life is 4 years. Towards the end of the year, P sold to S merchandise costing P150,000 at 40%gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventoryfrom S…
On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Considerationincludes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equityof S Company is as follows:P. Company S CompanyOrdinary Share Capital 3,300,000 1,450,000Accumulated Profits 5,450,000 2,800,000Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assetsof S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years),P600,000. All other assets and liabilities are fairly valued.S Company sold an equipment to P Company for P200,000 carried in S’s book at P120,000 on July 1, 2022;remaining life is 4 years. Towards the end of the year, P sold to S merchandise costing P150,000 at 40%gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventoryfrom S amounting to P250,000 which includes mark-up of 20% based on cost. P sold to…
Sailor Berhad acquired all the shares in Mon Berhad on 31 December 2022 for a cost of RM900,000. The statement of financial poistion of both companies for the year ended 31 December 20221 were as follows: Non-current assets Investment in Mon Berhad at cost Current assets Ordinary share Retained earnings Current liabilities Sailor Berhad RM'000 1,600 900 380 2,880 1,000 1,580 300 2,880 Mon Berhad RM'000 750 300 1,050 500 300 250 1,050 Required: Explain by way of calculation on how to prepare the consolidated statement of financial position for the group as at 31 December 2022.
On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Consideration includes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equity of P and S Company are as follows: P Company S Company Ordinary Share Capital 3,300,000 1,450,000 Accumulated Profits 5,450,000 2,800,000 Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years), P600,000. All other assets and liabilities are fairly valued. Towards the end of the year, P sold to S merchandise costing P150,000 at 40% gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventory from S amounting to P250,000 which includes mark-up of 20% based on cost. P sold to outsider 30% of these inventories during 2022. Goodwill is impaired by P225,000. P…
On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Consideration includes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equity of P and S Company are as follows: P Company S Company Ordinary Share Capital 3,300,000 1,450,000 Accumulated Profits 5,450,000 2,800,000 Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years), P600,000. All other assets and liabilities are fairly valued. Towards the end of the year, P sold to S merchandise costing P150,000 at 40% gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventory from S amounting to P250,000 which includes mark-up of 20% based on cost. P sold to outsider 30% of these inventories during 2022. Goodwill is impaired by P225,000. P…