Book Value Fair Value Cash 50,000 P 50,000 Accounts receivable 500,000 1,000,000 500,000 Inventory 1,500,000 Patent 250,000 Property, plant and equipment 2,000,000 3,000,000 In addition, the acquired entity had liabilities totaling P2,000,000 at the time of the acquisition. The acquired entity has no other separately identifiable intangible assets.
Q: Book Value P50,000 Market Value P50,000 200,000 600,000 Cash Inventory Plant Assets (net) Cost of…
A: Goodwill on acquisition shows the excess amount paid over the share of net identified assets…
Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition- date fair value on intangible…
A: The question is related to Consolidated Financial Statements. Required Compute for Consolidated…
Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible…
A: The question is related to Consolidated Financial Statements. Required Calculate Consolidated…
Q: uired At the beginning of current year, Mighty P7,000,000.. significant influence over the investee.…
A: Intangible assets seem to be assets that do not have a physical form. Companies that have spent a…
Q: 1. The Judi Company purchased another entity for P8,000,000 cash. A schedule of the fair value of…
A: Goodwill refers to the value of the intangible assets which is linked or associated with the…
Q: Book Value Fair Value 50,000 P 500,000 1,000,000 Cash 50,000 500,000 1,500,000 250,000 3,000,000…
A: Ans. On the acquisition date, assets and Liabilities shall be valued at fair value and not on the…
Q: RGW Industries purchased the net assets of SP Company for P1,300,000. A schedule of the net assets…
A: In the case of the acquisition of companies, the value of the cost of control (goodwill or capital…
Q: TBB Corp. has the following information regarding three of its assets: Estimated Book Value Cash…
A: Asset impairment can be defined as those assets that have a market value which is less than the…
Q: iad an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5- ts books…
A: Given: The financial statement is appeared as follows,
Q: Assume El Dorado Inc. buys a competitor’s assets for $900,000. Of the $900,000 acquisition price,…
A: As per section 197 of intangible assets, the amortization on intangible assets should be applied…
Q: Carrying value of SCo. Identifiable Net Assets $1,160,000 Fair Value S Co. Identifiable Net Assets…
A: Solution: Carrying value in 2011 = 1160000 Fair value in 2011 = 1190000 Hence fair value is higher…
Q: a. Inventory $140,000 b. Land $60,000 c. Buildings and Equipment $550,000 d. Fair value of…
A: The Consolidated Balances will take in account the revaluation on inventory which will go through…
Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible…
A: The question is related to Consolidated Financial Statements. Required Calculate Consolidated…
Q: GOODWILL Problem #1: Determining Goodwill Slam Corp. purchased Dot.com Corp for $190,000 in an all…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Topic: Intangible Assets (Goodwill) Guinevere Company is planning to sell the business to new…
A: Goodwill means the reputation of the company due to any factor like location , product , price ,…
Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…
A: Goodwill is an intangible asset of a company which exists due to the company’s customer base, brand…
Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition- date fair value on intangible…
A: The question is related to Consolidated Financial Statements. Required Calculate Consolidated…
Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…
A: Consolidation is the merger of two or more entities where one large company acquire share capital of…
Q: 5. ABC Company purchased Tara Company for P8, 000,000 cash. Tara Company had total liabilities of…
A: A merger or acquisition can help a company achieve rapid development in a short period of time.…
Q: How much should be recorded as the purchase price of the individual PPE items: 5. The old equipment…
A: Since the exchange will not impact the future cash flows, the exchange does not have any commercial…
Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible…
A: The inter-sales transaction between group entities should be eliminated to present a clear picture…
Q: #1 Jones Co. in a lump-sum purchase, bank note for $2,000,000 and used cas COS ASSET Land $300,…
A: Under lumpsum sale, all the assets and liabilities are transferred for one single consideration…
Q: Exchange of Assets Ashton Company exchanged a nonmonetary asset with cost of $30,000 and accumulated…
A: Book value of asset given = Cost - Accumulated depreciation = $30000 - $16000 = $14000
Q: A Ltd purchases the B Ltd for the following consideration of: Cash : $150 000 Land: carrying…
A: Solution: Fair value of net asset of B Ltd = ($390,000 + $95,000 - $70,000) - $195,000 =$200,000
Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible…
A: As per the consolidated financial statement, the transactions between the intra-group entity are…
Q: Lake Incorporated purchased all of the stock of Huron Company, paying $950,000 cash. Lake also…
A: Goodwill: Goodwill is a non-physical intangible asset which is generated when a company is acquired…
Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible…
A: The question is related to Consolidated Financial Statements. Required Consolidated Cost of Goods…
Q: 2. ABC Company purchased an entity for P6,500,000 cash at the beginning of the current year. The…
A: Goodwill on Acquisition: In most cases, the value of goodwill is established during an acquisition,…
Q: ABC Co. engaged your services to compute the goodwill and purchase price for the acquisition of XYZ…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Iris Company purchased another entity for P8,000,000 cash. The assets and liabilities of the acquire…
A: Calculation of fair value of net identifiable assets : Particulars Amount Cash P1,000,000…
Q: Loop Pole Co., acquired all the assets and current liabilities of North Pole Co.,. The North Pole…
A: Capital reserve (Goodwill) = Total assets excluding goodwill - Total liabilities
Q: A purchased B, paying $850,000 cash. The books values and fair values of acquired assets and…
A: The goodwill is calculated as difference between purchase price and excess of fair value of assets…
Q: 8. CARNATION Company purchased an entity for P6,000,000 cash on 2 poi January 31. The book value and…
A: Goodwill is the amount paid over the fair value of the net asset acquired.
Q: Marino Company had the following balance sheet On January 1, 2019: 1. Compute the…
A: Goodwill is an intangible asset that arises from the purchase of one company by another. Goodwill is…
Q: Sontag Corporation’s net assets have fair values as described below. Fair Value Current assets…
A: Gain on Acquisition: Acquiring a company whose fair value exceeds the price paid for it is known as…
Q: Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for…
A: Goodwill: It is an intangible asset that does not exist in physical form but has value in the…
Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible…
A: Parent company: It is the company that has a controlling interest in the subsidiary. It has full…
Q: Dirt Corporation schedule of depreciable assets at December 31, 20X7 was as follows: Accum.…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: Company X purchased Company Y for $4,000,000. The net assets of the company purchased were valued at…
A: Company X purchased company Y for $ 4,000,000. However the net assets of the company were 3,800,000.…
Q: Topic: Intangible Assets (Goodwill) Guinevere Company is planning to sell the business to new…
A: Goodwill means the reputation of the company due to any factor like location , product , price ,…
Q: ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible…
A: Consolidated assets are determined by adding the assets of parent and subsidiary company and some…
Q: A Ltd purchases the B Ltd for the following consideration of: Cash : $150 000 Land: carrying amount…
A: Goodwill = Purchase consideration paid + Fair value of non controlling interest - Fair value of net…
1. Question: What is the
CARNATION Company purchased an entity for ₱6,000,000 cash on January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition follow:
Step by step
Solved in 2 steps
- Topic: Non-Current Assets Held for Sale and Discontinued Operations 11. Which of the following shall be recognized by the entity in its 20x4 financial statements? a. Property, plant and equipment for P400,000 b. Property, plant and equipment for P1,000,000 c. Noncurrent asset held for sale for P950,000 d. Noncurrent asset held for sale for P1,000,000 18. Requirement: Provide the journal entry on December 31, 20x4.6. 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-800,000Do a to h with proper explanation 1. Assume the following data apply shortly after Python Co. acquires Snakes Co.: P Co. (000s) 450 S Co. (000s) Assets 200 Liabilities 250 125 CS 75 35 APIC/OCC 75 30 RE 50 10 P asset s have a fair value = 435k; S' identifiable assets have a P acquires 80% of S's outstanding voting S' assets include pre-acquisition fair value = 300k. stock for $160k cash. Goodwill of 20k, and P's assets (and S' liabilities) reflect a Loan P has made to S for 10k. The DOA consolidated Balance Sheet should show (hint:: your B/S should balance: a+b-c=d+e+f+g) : a. identifiable assets b. Goodwill (algebraic) liabilities C. d. Common Stock e. АPIC/ОСС f. RE g. Noncontrolling interest h. Differential
- Company X purchased Company Y for $4,000,000. The net assets of the company purchased were valued at $3,800,000. What asset will be on Company X's balance sheet for $200,000? Goodwill Amortization Not enough info EquipmentUse the following data to determine the total dollar amount of assets to be classified as current assets. Cash and cash equivalents Accounts receivable Inventory Prepaid insurance Stock investments Land Buildings Less: Accumulated depreciation Marigold Corp. Balance Sheet December 31, 2022 $226000 $67000 86500 149000 83000 193000 199500 (53500) 172500 Accounts payable Salaries and wages payable Bonds payable Total liabilities Common stock Retained earnings $126000 11100 161500 $298600 $309400 475500How much should be recorded as the purchase price of theindividual PPE items: 5. The old equipment has an original cost of P1,500,000,accumulated depreciation of P600,000, and fair value ofP1,000,000. The new equipment obtained throughexchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity.
- If the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be * accounted for as goodwill. allocated to gain on acquisition allocated to reduce current and long- lived assets. O allocated to reduce long-lived assets. RCo iccuod 6 000 shares of itsThe general ledger of Proton Corporation as of December 31, 2022, includes the following accounts: Copyrights P 30,000 Deposits with advertising agency (will be used to promote goodwill) 27,000 Bond sinking fund 70,000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 390,000 Trademarks 120,000 In the preparation of Proton's statement of financial position as of December 31, 2022, what should be reported as total intangible assets? O P567,000 O P537,000 O P510,000 O P540,0005. How should accounting fees for acquisition be treated? A. Expensed in the period of acquisition B. Capitalized as part of acquisition cost C. Deferred and amortized D. Deferred until the company is disposed of or wound-up 6.The excess of the price paid over the fair value of the net identifiable assets acquired should be recognized as A. Goodwill to be amortized periodically for 20 yearS. B. Expenses immediately C. Goodwill not subject to amortization but subject to impairment D. Goodwill to be amortized for 40 years 7.Under PFRS 3 (Business Combinations) A. Both direct and indirect costs are to be capitalized B. Both direct and indirect costs are to be expensed C. Direct costs are to be capitalized and indirect costs are to be expensed D. Indirect costs are to be capitalized and direct costs are to be expensed
- 2. What amount of unrealized holding gain should be PROBLEMS Problem 23-1 (IAA) Simple Company reported the following information in relation to land: * The entity purchased land on January 1, 2021 for P500,000 cash. On December 31, 2021, the land has a current replacement cost of P600.000. * On December 31, 2022, the land has a current replacement cost of P750,000. The entity sold the land for P1,000,000 cash on December 31, 2023. On this date, the current replacement cost of the land is P800,000. - What amount of unrealized holding gain should be reported in 2021? a. 600,000 b. 500,000 C. 100,000 d. 0. reported in 2022? a. 250,000 150,000 c. 100,000 d. 0. reported in 2023? a. 300,000 b. 250,000 50,000 d. C. in 2023? a. 500,000 b. 250,000 C. 200,000 d. 150,000 711Below is the information relative to an exchange of assets by Bramble Corporation. The exchange lacks commercial substance. Old Equipment Book Value Fair Value Cash Paid Case I $456000 $522000 $81500 Case II $304000 $272500 $42900 Which of the following would be correct for Bramble to record in Case I? Record Equipment at: Record a gain (loss) of: $456000 $(31500) $537500 $0 $603500 $66000 $537500 $66000Show the solution in good accounting form Coronation company purchased an entity for 6,000,000 cash on January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition of follow: Question: What is the good arising from the acquisition? A. 4,450,000 B. 700,000 C. 2,450,000 D. 2,700,000