Advanced Accounting
Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
Question
Book Icon
Chapter 1, Problem 7UTI
To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

To provide: Adjustments in financial statements

Blurred answer
Students have asked these similar questions
UNDOS COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years and no residual value. On January 1, 2015, the entity classified the asset as held for sale. The fair value of the equipment of January 1, 2015 is P3,300,000 and the cost of disposal is P100,000. On December 31, 2015, the fair value of the equipment is P3,800,000 and the cost of disposal is P200,000. On December 31, 2015, the entity believed that the criteria for classification as held for sale can no longer be met. Accordingly, the entity decided not to sell the asset but to continue to use it. What amount should be recognized in profit or loss as a result of the reclassification in 2015?
Avery Company acquires the net assets of Iowa Company on July 1, 2015. The net assets acquired include plant assets that are provisionally estimated to have a fair value of $600,000 with a 10-year usable life and no salvage value. Depreciation is recorded based on months in service. The remaining unallocated amount of the price paid is $300,000, which is recorded as goodwill. At the end of 2015, Avery prepares the following statements (includes Iowa Company for the last six months):In March 2016, the final estimated fair value of the acquired plant assets is $700,000 with no change in the estimate of useful life or salvage value. 1. Prepare any journal entries required inMarch 2016. 2. Prepare the revised balance sheet and income statement for 2015 that will be included in the 2016 comparative statements.
Booster Co purchased a building on 1 January 2010 for P1,250,000. At acquisition, the useful life of the building was 50 years.  Depreciation is calculated on the straight-line basis.  On 1 January 2020, the building was revalued to P1,600,000.  Booster Co has a policy of transferring the excess depreciation on revaluation from the revaluation surplus to retained earnings. Assuming no further revaluations take place, what is the balance on the revaluation surplus at 31 December 2020?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Text book image
SWFT Comprehensive Vol 2020
Accounting
ISBN:9780357391723
Author:Maloney
Publisher:Cengage
Text book image
SWFT Comprehensive Volume 2019
Accounting
ISBN:9780357233306
Author:Maloney
Publisher:Cengage
Text book image
SWFT Individual Income Taxes
Accounting
ISBN:9780357391365
Author:YOUNG
Publisher:Cengage
Text book image
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:9780357110362
Author:Murphy
Publisher:CENGAGE L
Text book image
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:9780357391266
Author:Nellen
Publisher:Cengage