Reference no: EM132722178
On January 2, 2017, PINKY, INC. acquired a 15% interest in CPS Corp. by paying P8,000,000 for 100,000 ordinary shares. On this date, the net assets of CPS Corp. totaled P40, 000,000. The fair values of CPS Corp 's identifiable assets and liabilities were equal to their book values. Pinky did not have the ability to exercise significant influence over the, operating and financial policies of CPS. Lovely received dividends of P1.40 per share from CPS on October 1.,2017. CPS reported net income of P5,000,000 for the year ended December 31, 2017. Lovely classified the investment as at fair value through other comprehensive income. Market price for the 100.000 shares was P9,000,000 on December 31, 2017.
- Pinky paid P30,000,000 on January 1, 2018, for 300.000 additional CPS ordinary shares, which represents a 25% interest in CPS. The fair value: of CPS Corp 's identifiable assets, net of liabilities, was equal to their book values of P92, 000.000. As a result of this additional acquisition, Pinky has the ability to exercise significant influence over the operating and financial policies of CPS. PInky received a dividend of P2.70 per 49 share on October 5, 2018. CPS reported net income of P6, 000,000 for the year ended December 31, 2018. The investment's fair value on December 31, 2018, is P45,000,000.
Problem a. In the December 31, 2017, statement of financial position, what is the carrying amount of the investment in equity securities?
Problem b. What is the total amount of investment-related income that should be reported in the 2017 income statement?
Problem c. What amount of gain on remeasurement to equity should be reported in the 2018 income statement?
Problem d. What is the goodwill arising from the acquisition of additional 300,000 shares on January 1, 2018?
Problem e. What is the goodwill arising from the acquisition of additional 300,000 shares on January 1, 2018?
|
Do is a good idea to invest in hertz after bankruptcy filing
: Based on today's lecture, do you think it is a good idea to invest in Hertz after the bankruptcy filing? Post your thoughts on discussion board
|
|
Discuss about the differential diagnosis
: You are to do a power point presentation using the following headings below. Present a typical patient with this disease process and how they would present.
|
|
Nuclear waste storage on yucca mountain
: Nuclear Waste Storage on Yucca Mountain - You are requested to debate in your report whether Yucca Mountain should be a repository for nuclear waste
|
|
Organisation of maintaining occupational health
: What arguments could you use to help the Managing Director understand the benefits to the organisation of maintaining occupational health
|
|
What is the carrying amount of investment in equity security
: PINKY, INC., In the December 31, 2017, statement of financial position, what is the carrying amount of the investment in equity securities?
|
|
Why is it important to understand the effect of values
: Why is it important to understand the effect of values, beliefs and behaviour on your professional practice?
|
|
What is the journal entry on feb for sunbathe co
: What is the journal entry on Jan. 15, 20x1? (Sunbathe Co. recognizes interest income only at year-end.). What is the journal entry on Feb. 1, 20x1?
|
|
How tesla using technology to improve product
: 1. How Tesla using technology to improve their product? 2. How Tesla use technology to track customer behavior?
|
|
What is the value of the total payment
: You want to lend $20,0003 %over 18. What is the total interest paid to you at the end of 18 months? What is the value of the total payment?
|