Reference no: EM133047435
Q1. On January 1, 20X4, JVE Corp. paid $1,000,000 cash to acquire 35% of the common shares of PG Corp. At the time of acquisition, the carrying amount of PG's common shares was $900,000, and its retained earnings were $1,500,000. The fair values of the identifiable net assets (INA) approximated their carrying values except for the following:
The fair value of machinery was estimated to be $400,000; the net book value was $450,000.
Other information follows:
-The remaining useful life of machinery at the date of acquisition was five years, and the estimated residual value was $0. Both companies depreciate their equipment on a straight-line basis.
-PG's net income for the years ended December 31, 20X4, and December 31, 20X5, was $125,000 and $135,000, respectively.
-On September 1, 20X4, PG declared and paid $75,000 of dividends on its common shares; no other dividends have been declared since.
-The investment in the associate was not impaired.
-On January 1, 20X6, JVE reduced its ownership stake in PG to 25%. The cash proceeds realized from the sale of the shares was $330,000.
What is the amount of gain to be reported on the partial disposal of PG's common shares on January 1, 20X6?
a) $16,286
b) $23,786
c) $25,786
d) $37,714
|
Trade lower benefits for higher wages
: Is it likely that employers will trade lower benefits for higher wages?
|
|
Practices and regulations within corporate accounting
: Understanding accounting concepts, principles and theories and Be able to demonstrate specific policies, practices and regulations within corporate accounting
|
|
Design and implementation of gis technology
: "Design and Implementation of GIS Technology" within any fictional or real agency, as School, University, Environmental Agency,
|
|
What are financial-hr and marketing issues
: What are Financial, HR and Marketing Issues in the below case study.
|
|
What is amount of gain to be reported on partial disposal
: The fair value of machinery was estimated to be $400,000; What is amount of gain to be reported on partial disposal
|
|
Effect of globalization on organizational ethics
: What is the importance of ethics and social and corporate responsibility in today's companies and how could their image be affected if they are not aligned with
|
|
Talk about which emotions were the easiest to portray
: a) Talk about which emotions were the easiest to portray and guess. Why might this be?
|
|
Internship reflection requirement urgent
: How did this internship help prepare you for future endeavors, both academically and in the workplace? What surprised you about this internship?
|
|
Elements of transformational leadership
: Jim Jones was the American founder of the People's Temple Church, which later became a cult-like movement. Although the group began with more mainstream belief,
|