Reference no: EM132981420
Question - On January 1, 2020, Suko Company purchased 30% of the outstanding ordinary shares of Kat Company for P7,500,000 when the carrying amount of the net assets of Kat Company equaled P18,000,000. Equipment with remaining useful life of 5 years had a fair value that was P3,750,000 in excess of their carrying amount. The remaining difference between the purchase price and the carrying amount of the underlying equity cannot be attributed to any identifiable asset. Accordingly, the remaining difference is allocated to Goodwill.
During 2020, Kat Company reported net income of P6,000,000 and paid cash dividend of P1,500,000.
1. What is the implied goodwill from the acquisition?
a. P975,000 c. P1,125,000
b. P2,100,000 d. P1,425,000
2. What is the amount of investment income for 2020?
a. P1,380,000 c. P2,025,000
b. P1,575,000 d. P1,800,000
3. What is the carrying amount of the investment in associate on December 31, 2020?
a. P8,100,000 c. P8,850,000
b. P8,625,000 d. P7,500,000
What can go wrong if resources are not effectively managed
: What can go wrong if resources are not effectively managed? What do you consider to be the most important resource in these types of projects?
|
Calculate the total expense to be recognized
: On January 7, purchased the net asset of another entity for P540,000. Calculate the total expense to be recognized
|
Evaluation of the security guard training program
: In 2010 John Brown was wrestled to the ground by security guards at a grocery store in Toronto. He was handcuffed and kept face-down on the ground where he died
|
How much money would the second partner receive
: The first partner contributed $100,000 in beginning capital, and the second contributed $50,000. How much money would the second partner receive
|
What is the amount of investment income
: Equipment with remaining useful life of 5 years had a fair value that was P3,750,000 in excess of their carrying amount. What is the amount of investment income
|
Describe the type of international hrm approach
: Nelly's Fried Chicken, with restaurants around the world, serves a standardized menu of chicken dishes made with the same recipes.
|
Why is hr considered as a strategic partner
: Why is HR considered as a strategic partner within modern organizations? Give examples and references to support your opinion.
|
Discuss the discipline of critical introduction
: Explain the discipline of Critical Introduction, and tell why is it important to discuss critical introductory matters of the Bible. Please give well thought-ou
|
What percentage of variable cost per unit does entity sell
: Net income reported in the contribution margin income statement is P2,790,000. At what percentage of all variable cost per unit does entity sell their chairs
|