Reference no: EM132979594
Question - On December 4, 20X0, ABC Corporation paid P1,296,000 for 40,000 ordinary shares of XYZ Company. The investment represents a 30% interest in the net assets of XYZ and gave ABC the ability to exercise significant influence over XYZ's operating and financial policy decisions. ABC received dividends of P1 per share on December 4, 20X0, and XYZ reported net income of P640,000 for the year ended December 31, 20X0. The market value of XYZ's ordinary shares at December 31, 20X0, was P32 per share. The book value of XYZ's net assets was P3,200,000, and:
The fair value of XYZ's depreciable assets, with an average remaining useful life of 8 years, exceeded their book value by P320,000.
The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill.
Required - What amount of investment revenue should be reported in ABC's income statement for the year ended December 31, 20X0?
|
What is the project MIRR
: A project has an initial cost of $55,000, expected net cash inflows of $8,000 per year for 7 years, and a cost of capital of 14%. What is the project's MIRR
|
|
Misleading and deceptive conduct
: Has ABC Ltd engaged in "irresponsible lending" and Whether Clause 10 has breached any of the sections in the ASIC Act and ACL
|
|
How transaction risk affects international expansion
: How would use sensitivity and scenario analysis to make your recommendation. Spell out the advantages and disadvantages of each method.
|
|
Different job positions in various departments
: You have named as Human Resource Manager for a company, having 180 employees at different job positions in various departments. Which method you will use for ap
|
|
What amount of investment revenue should be reported
: What amount of investment revenue should be reported in ABC's income statement for the year ended December 31, 20X0
|
|
How does partnership support children
: -Share an example of a partnership that you, as a current or aspiring early education professional, would develop with families and the community.
|
|
Determine amount of cash withheld for future liquidation
: On the first month of liquidation, assets with a book value of P1,400,000 are sold for P1,060,000. Determine amount of cash withheld for future liquidation
|
|
Calculate the after-tax incremental annual cash flow
: Estimation of the incremental annual cash flow from operations. Calculate the after-tax incremental annual cash flow from operations.
|
|
What is the difference between merit raise and merit bonus
: What is the difference between a merit raise and a merit bonus? When would it be appropriate to use each one?
|