Reference no: EM132963386
Questions -
Q1. On January 1, 20X1, P Company (PC) purchased 80% of the outstanding shares of S Company (SC) at the cost of P700,000. On that date, SC had P300,000 and P500,000 capital stock and retained earnings, respectively. The non-controlling interest (NCI) is measured on a fair-value basis.
For 20X1, PC had a comprehensive income (CI) of P300,000 and paid dividends of P100,000. On the other hand, SC reported a CI of P150,000 and paid dividends of P50,000. All of the assets and liabilities of S Company had book values that approximately equal to their respective market values.
On December 31, 20X1, PC sold a piece of equipment with a book value of P30,000 to SC for P25,000.
The gain on the sale is included in the CI of PC indicated above. The equipment has a 10-year useful life.
It has been used for the past five (5) years before the date of acquisition.
Required -
a. Prepare the journal entries that both companies should make for the year 20X1.
b. Allocate the consolidated comprehensive income at the end of the year.
Q2. On January 2, 20X1, Padre Corporation (PC) purchases 80% of the common stock of Son Company (SC) for P300,000. SC's has P200,000 and P50,000 book value of common stock and retained earnings. The book values of SC identifiable net assets approximate their related fair values. On May 20X1, PC sold merchandise costing P19,600 to SC for P24,500. Out of which, only P5,000 remains unsold by SC at the end of 20X1. PC and Saul use the same mark-up based on cost.
In 20X2, PC sold another merchandise to SC for P30,000. Of the said merchandise, P8,000 remains in the ending inventory of 20X2.
PC has P50,000 and P80,000 comprehensive income from its operations on 20X1 and 20X2, respectively.
On the other hand, SC has P20,000 and P50,000 comprehensive income from its operations for 20X1 and 20X2.
Required -
1. Prepare the necessary entries to be made by both companies for 20X1 and 20X2.
2. Allocate the consolidated comprehensive income to the controlling and non-controlling interest for 20X1 and 20X2.
|
What is the value Barzini will show for the patent
: Barzini Corporation holds a patent which it currently values at $1,500,000. Disregarding any amortization, what is the value Barzini will show for the patent
|
|
Determine how large a Wozac plant to build
: It costs $0.40 per year to operate a unit of capacity. Determine how large a Wozac plant to build to maximize the NPV of the profit
|
|
What are the presenting issues for brad
: Case Studies are an effective way of diagnosing client issues and formulating a treatment plan - How would you proceed with this session and beyond
|
|
SOC201A Mediation and Conflict Management Assignment
: SOC201A Mediation and Conflict Management Assignment Help and Solution, Jansen Newman Institute - Assessment Writing Service
|
|
Allocate the consolidated comprehensive income
: On December 31, 20X1, PC sold a piece of equipment with a book value of P30,000 to SC for P25,000. Allocate the consolidated comprehensive income
|
|
What annual savings can Aqua Systems expect
: Aqua System Inc. expects to have $13,118,886 in credit sales during the coming year. What annual savings can Aqua System expect
|
|
What they should work on to improve company performance
: Compare between the company of your choice and another company to evaluate its strategy. Examples of Canadian companies would be SNC-Lavalin, Canadian Goose
|
|
What will be affected in this shift from using diesel trucks
: How can the demand of this service be met and provided without interruption knowing that the infrastructure is not there yet?
|
|
Prepare a multi-step Income statement for Moon Corporation
: Prepare a multi-step Income statement for Moon Corporation for 2020 using the below data - Advertising expense 250 Wages expense 3,300
|