Reference no: EM133185527

Question 1 - On January 1, 2022, JPIA Corporation has a subsidiary in Hong Kong. The subsidiary's December 31, 2022 Trial Balance, in Hong Kong Dollar (HK$), is as follows:

	DEBIT	CREDIT
Cash	18,000
Accounts receivable (net)	30,000
Inventory	37,500
Plant & equipment	150,000
Accumulated Depreciation		15,000
Accounts payable		18,000
Bonds payable		75,000
Ordinary Share		90,000
Sales		225,000
Cost of Sales	105,000
Depreciation expenses	15,000
Operating expenses	45,000
Dividends paid	22,500
	423,000	423,000

Additional Information: Purchases of inventory goods were made evenly during the year. The dividends were declared and paid on November 1. The ordinary shares were issued on January 1, 2022. The functional currency of the subsidiary is the Hong Kong dollar. Exchange rates were as follows:

	HK$	PHP
January 1	1.00	5.30
March 1	1.00	5.40
November 1	1.00	5.50
December 31	1.00	5.00
Average rate - 2022	1.00	5.40

Cumulative translation adjustment loss (debit) is?

Question 2 - On January 1, 2020, Julius Company acquired 40% interest in Ella Company for P4,800,000. Julius already had 25% interest which had been acquired for P1,600,000. The fair value of the identifiable net assets of Ella Co. was P8,800,000. How much is the goodwill recognized by Julius as a result of business combination?

Question 3 - On January 07, 2022, Ian Co., acquired 35% interest in Mark Co., for P4,300,000. Ian already held a 20% interest which had been acquired for P1,600,000 which was valued at P1,800,000 at January 07, 2022. The fair value of the identifiable net assets of Mark Co., was P8,400,000. The fair value of NCI is P4,050,000. How much goodwill is to be recorded on the separate books of Ian Co.?