Reference no: EM133105117
Question - Galaxy Corporation acquired 80% of the outstanding shares of United Company on June 1, 2022 for P3,517,500. United Company's stockholder's equity components at the end of this year are as follows: Ordinary shares, P100 par, P1,500,000, Share premium P675,000 and Retained Earnings P1,335,000. Non-controlling interest is measured at fair value and the fair value is P705,000. The assets of United were fairly valued, except for inventories, which are overstated by P66,000 and equipment, which was understated by P90,000 Remaining useful life of equipment is 4 years.
Stockholder's equity of Galaxy on January 1, 2022 is composed of Ordinary shares P4,500,000, Share premium P1,050,000, Retained Earnings P3,150,000. Goodwill, if any, should be written down by P85,350 at year-end. Net Income for the first year of parent is P450,000 and the net income of subsidiary from the date of acquisition is P255,000. Dividends declared at the end of the year amounted to P120,000 and P90,000. During the year, there was no issuance of new ordinary shares.
Required -
1. How much is the non-controlling interest in net assets on December 31, 2022?
a. P763,455
b. P871,005
c. P731,505
d. P745,455
2. What is the amount of consolidated shareholder's equity?
a. P9,853,575
b. P9,122,070
c. P8,773,575
d. P9,867,525
|
Understand foreign direct investment
: The purpose of this assignment is to enhance the learner's ability to understand foreign direct investment undertaken by a firm and its implications to the host
|
|
What is current design of your job
: What is the current design of your job? Assume that the opportunity arose for you to utilize the idiosyncratic deals (i-deals) in redesigning your job.
|
|
Goal setting on interpersonal and organizational
: What is the impact of goal setting on interpersonal and organizational? Explain how goal setting and conscious culture research supports your position.
|
|
Compute the standard rate per direct labor hour
: The basic direct labor rate is $11.48 per hour. Payroll taxes are 12% of the basic direct labor rate, Compute the standard rate per direct labor hour
|
|
What is the amount of consolidated shareholder equity
: Stockholder's equity of Galaxy on January 1, 2022 is composed of Ordinary shares P4,500,000, What is the amount of consolidated shareholder equity
|
|
Which represent the revenue recognized
: DXC uses the percentage of completion method to recognize revenue. Which of the following represent the revenue recognized in 2013, 2014, and 2015
|
|
Liability of professionals and insurance policy coverage
: Analyze the major connections between liability of professionals, insurance policy coverage, and settlement of claims due to health care liability issues
|
|
How much is the year one operating cash flow
: Stuart's marginal federal-plus-state tax rate is 25%, and its WACC is 12%. How much is the year 1 operating cash flow
|
|
Primary purpose of business
: The primary purpose of business is to solve people's problems. The primary responsibility of senior leaders is to create and maintain an environment of meaning
|