User Account

All Pages

How much is the goodwill on the consolidated balance sheet

Assignment Help Financial Accounting
Reference no: EM132765405

Palma Company acquired 80% of outstanding ordinary shares of Shera Company for P1,000,000 at the beginning of 2020. Book value of Shera Company's net assets is P1,000,000. Upon re measurement of acquiree's net assets, it shows that inventory has a fair value higher by P40,000 than its book value and equipment with a fair value and book value of P450,000 and P360,000, with remaining life of five (5) years. Palma measures NCI at fair value. The fair value of NCI at the beg. of 2018 was P250,000. During the year Palma reported net income of P300,000 for the year ended December 31, 2020. Shera Company's net income for 2020 amounts to P120,000.

Goodwill is impaired by P15,000. Shera sold inventory to Palma at 20% gross profit. Inventory amounting to P50,000 remained in the books of Palma.

Question 1: How much is the goodwill on the consolidated balance sheet on December 31, 2020 assuming that the corporations qualify as SMEs?

Reference no: EM132765405

Questions Cloud

Prepare the journal entries to record the sale of building : Prepare the journal entries to record the sale of the building after having used the revaluation model using the proportionate method
What value should asset be carried in financial statements : The replacement cost of an identical asset would be £30,000. At what value should the asset be carried in the financial statements?
What would the total recruiting cost be for digby next year : The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Digby next year
Greater impact for greater good : Does the "greater impact for the greater good" way the United States covers certain incidents present the stark facts, or stand back and give public commentary
How much is the goodwill on the consolidated balance sheet : How much is the goodwill on the consolidated balance sheet on December 31, 2020 assuming that the corporations qualify as SMEs?
Cells reproduce by splitting in half : What do cells need to do between divisions to make sure that they don't just get smaller and smaller?
What amount should june report as liability : During 2020, June Company sold 500,000 boxes of cake mix under a new sales promotional program. What amount should June report as liability
External environment of department of entomology : External Environment of Department of entomology University of Maryland
Determine the amount of goodwill in the consolidated balance : Determine the amount of goodwill in the consolidated balance sheet as of December 31, 2018. Pavilion Corp. acquired 80% interest from Sacco Company on January.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Estimate standard deviation and variance in annual returns

The following table lists the stock prices for Microsoft from 1989 to 1998. The company did not pay any dividends during the period.  Estimate the average annual return you would have made on your investment. Estimate the standard deviation and varia..

  Will the effect on net income of the decline in cost of good

Will the effect on net income of the decline in cost of goods sold be the same for all three companies? Company A-weighted average cost

  Financial statement analysis

Discuss at least 3 points which support your conclusion, and 1 of these points must relate to a competitor's financial performance

  How many shares of common stock does jlf have

How many shares of common stock does JLF have outstanding at December 31, 2011? Prepare a schedule to support your answer.

  What is the net cash inflow from investing activities

Cost $800,000 with accumulated depreciation $500,000 and made a loss of $10,000. What is the net cash inflow (outflow) from investing activities?

  Income statement and the balance sheet

Referring only to the income statement and the balance sheet (exhibits 3 and 4 for 1997 and exhibits 7 and 8 for 2005) estimate

  Prepare a schedule of cost of goods manufactured for company

Prepare a schedule of cost of goods manufactured for the company for the month

  Which failure to record adjusting entry for salaries expense

Which failure to record an adjusting entry for salaries expense would? Cause stockholders' equity to be overstated./ Cause cash to be understated.

  Journalize the entries to record second semiannual interest

Journalize the entries to record the Second semiannual interest payment. The bond discount is combined with the semiannual interest payment.

  Considering taking early retirement offered by her employer

Bertha is considering taking an early retirement offered by her employer. She would receive $3,000 per month, indexed for inflation. However, she would no longer be able to use the company’s health facilities, and she would be required to pay her hos..

  Prepare schedule showing the changes in capital

Razul and Amy decided to start a partnership. Prepare schedule showing the changes in capital and ending capital balances after the admission of Sheila.

  Create a multiple-step income statement

Loss on operations of the wholesale division (net of tax) 90,000. Dividends declared on common stock 250,000. Create a multiple-step income statement and a retained earnings statement

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd