December 31: a) How much goodwill will be recognized in consolidation? $ b) How much is the minority interest in consolidation? $. c) How much of Sod's equity is included in consolidation? $_
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- On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding ordinary shares of Minnie Mouse Inc. for P5,000,000. Minnie Mouse’s assets and liabilities approximate their fair except for inventory which carrying amount was undervalued by P500,000; machinery is undervalued by P300,000. The remaining useful life of the machinery is 5-years. Minnie Mouse’s net assets has a book value of P10,000,000.On December 31, 2020, Minnie Mouse reported net income of P2,000,000 and declared and paid dividends of P800,000. On December 31, 2021, Minnie Mouse reported net income of P4,500,000 and declared and paid dividends of P1,600,000.How much is the carrying amount of Investment in Associate in 2021? 6,194,000 4,490,000 6,230,000 5,342,000On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding ordinary shares of Minnie Mouse Inc. for P5,000,000. Minnie Mouse’s assets and liabilities approximate their fair except for inventory which carrying amount was undervalued by P500,000; machinery is undervalued by P300,000. The remaining useful life of the machinery is 5-years. Minnie Mouse’s net assets has a book value of P10,000,000.On December 31, 2020, Minnie Mouse reported net income of P2,000,000 and declared and paid dividends of P800,000. On December 31, 2021, Minnie Mouse reported net income of P4,500,000 and declared and paid dividends of P1,600,000.How much is the carrying amount of Investment in Associate in 2020? 5,342,000 5,378,000 4,658,000 5,200,000 How much is the Share in Profit account of Mickey Mouse for the year ended December 2020? 582,000 618,000 258,000 222,000On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding ordinary shares of Minnie Mouse Inc. for P5,000,000. Minnie Mouse’s assets and liabilities approximate their fair except for inventory which carrying amount was undervalued by P500,000; machinery is undervalued by P300,000. The remaining useful life of the machinery is 5-years. Minnie Mouse’s net assets has a book value of P10,000,000. On December 31, 2020, Minnie Mouse reported net income of P2,000,000 and declared and paid dividends of P800,000. On December 31, 2021, Minnie Mouse reported net income of P4,500,000 and declared and paid dividends of P1,600,000.How much is the implied goodwill from acquisition?
- On January 1, 2020, Mickey Mouse Co. acquired 30,000 ordinary shares out of the 100,000 outstanding ordinary shares of Minnie Mouse Inc. for P5,000,000. Minnie Mouse’s assets and liabilities approximate their fair except for inventory which carrying amount was undervalued by P500,000; machinery is undervalued by P300,000. The remaining useful life of the machinery is 5-years. Minnie Mouse’s net assets has a book value of P10,000,000.On December 31, 2020, Minnie Mouse reported net income of P2,000,000 and declared and paid dividends of P800,000. On December 31, 2021, Minnie Mouse reported net income of P4,500,000 and declared and paid dividends of P1,600,000.How much is the carrying amount of Investment in Associate in 2021? What amount of dividend revenue should be reported for the current year?Scott Company paid $2.800,000 to acquire all of the common stock of Dawn Corporation on January 1, 2023. Dawn's mported eanings for 2023 totaled $512.000 and it $160,000 in dividends during the year. The amortization of allocations related to the investment was $28.000. Scott's net income not including the investment, was $3.310.000 and it paid dividends of $950,000. What is the amount of consolidated net income for the year 2023? O $3,150.000 O $3.282.000 O $3.310.000 O $3,794,000 O $3.822.000On January 1, 2018, P Company purchased 6,000 shares of the 7,500 outstanding shares of S Company by paying P700,000. On that date, S Company had P300,000 capital stock and P500,000 of retained earnings. The excess cost over book value was attributable to the building with a remaining life of 25 years. All other assets and liabilities of S Company had book value approximated their fair market value. The fair value of NCI on this date was P175,000. P Company's retained earnings as of January 1, 2018 was P550,000. The 2018 and 2019 net income and dividends were as follows: Net income Dividends 2018 P340,000 150,000 2019 P440,000 250,000 2018 2019 P Company S Company P100,000 50,000 P150,000 100,000 On April 1, 2018, S Company sold equipment with a book value of P30,000 to P Company for P60,000. The equipment is expected to have a remaining useful life of five years from the date of sale. On August 31, 2018, P Company sold machinery with a book value of P40,000 to S Company for P85,000.…
- Herbert, Inc., acquired all of Rambis Company's outstanding stock on January 1, 2020, for $622,000 in cash. Annual excess amortization of $11,300 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $465,000, an Rambis reported a $211,000 balance. Herbert reported internal net income of $43,500 in 2020 and $56,900 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $22,100 in 2020 and $35,500 in 2021 and declared $5,000 in dividends each year. a. Assume that Herbert's internal net income figures above do not include any income from the subsidiary. • If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2021? • What would be the amount of consolidated retained earnings on December 31, 2021, if the parent had applied either the initial value or partial equity method for internal accounting purposes? b. Under each of the following situations, what is…Ruiz Company puchased 30 per cent of Sim Company’s outstanding common stock for $3,000,000 and uses the equity method of accounting. Sim Company reported net income of $ 640,000 for 2018. On 2018 December 31, Sim Company paid a cash dividend of $200,000. In 2019, Sim Company incurred a net loss of $ 65,000. Prepare entries to reflect these events on Ruiz Company’s books.On January 1, 2021, Knight Corporation purchases all the outstanding shares of Craig Company for $950,000. It has been decided that Craig Company will use push-down accounting principles to account for this transaction. The current balance sheet is stated at historical cost. The following balance sheet is prepared for Craig Company on January 1, 2021: (see attachment)Knight Corporation receives the following appraisals for Craig Company’s assets and liabilities: Cash . . . . . . . . . . . . . . . . . . . . . . $ 80,000 Accounts receivable . . . . . . . . . . 260,000 Prepaid expenses . . . . . . . . . . . . 20,000 Land. . . . . . . . . . . . . . . . . . . . . . . 250,000 Building (net) . . . . . . . . . . . . . . . . 700,000 Current liabilities . . . . . . . . . . . . . 90,000 Bonds payable . . . . . . . . . . . . . . 280,000 Deferred tax liability . . . . . . . . . . 40,000 1. Record the investment. 2. Prepare the value analysis schedule and the determination and distribution of…
- Foxx Corporation acquired all of Greenburg Company's outstanding stock on January 1, 2019. for $586,000 cash. Greenburg's accounting records showed net assets on that date of $440,000, although equipment with a 10-year remaining life was undervalued on the records by $56,500. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2019 of $105,000 and $137,500 in 2020. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2021, follow. Credit balances are indicated by parentheses. Revenues Cost of goods sold Depreciation expense Investment income Foxx $(1,164, 000) 145, 500 358, e00 (20,000) $ (680, 500) Greenburg $ (620, 000) 155, e00 440, 000 Net income (25, 000) Retained earnings, 1/1/21 Net income $(1,160, 000) (689, 500) 120, e00 $ (342, 500) (25, 000) 20,000 $ (347, 500) Dividends declared Retained earnings, 12/31/21 $(1,720,500) Current assets 373, e00 586, 000 1,882,…Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $592,000 in cash. Annual excess amortization of $15,700 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $408,000, and Rambis reported a $205,000 balance. Herbert reported internal net income of $45,000 in 2020 and $58,700 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $25,900 in 2020 and $39,600 in 2021 and declared $5,000 in dividends each year. a. Assume that Herbert’s internal net income figures above do not include any income from the subsidiary. If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2021? What would be the amount of consolidated retained earnings on December 31, 2021, if the parent had applied either the initial value or partial equity method for internal accounting purposes? b. Under each of the following situations, what is…On January 01, 2021, Batman Corp. acquired 75% of the outstanding stock of Superman Co. for P1,380,000 cash. The book value of Superman Co's net assets was P1,200,000. Batman Corp. determined that the inventory and plant assets (remaining life of 5 years) of Superman Co. were understated by P100,000 and P300,000, respectively. Superman Co's net income for the year ended December 31, 2021 was P500,000. During the year 2021, Batman Corp. received P240,000 cash dividends from Superman Co. The fair value of NCI was determined at P445,000. Loss on impairment of goodwill was P25,000. Net income of B Corp. under the cost method amounted to P1,000,000. B Corp. is using the fair value method in measuring NCI. How much is the Investment Balance on December 31, 2021 on the books of Batman Corp. under the equity method? a.1,395,000 b.1,375,000 c.1,615,000 d.1,380,000