User Account

All Pages

What is the carrying amount of the investment in associate

Assignment Help Accounting Basics
Reference no: EM132791823

At the beginning of current year, Croatia Company acquired 20% of the outstanding ordinary shares of an investee for P7,000,000. This investment gave Croatia Company the ability to exercise significant influence over the investee. The carrying amount of the acquired net assets was P6,000,000.The excess of cost over carrying amount was attributed to an identifiable intangible asset which was undervalued on investee statement of financial position and which had a remaining useful life of 10 years. The investee reported net income of P1,800,000 for the current year and paid cash dividend of P600,000 on the ordinary shares.

Problem 1: What is the carrying amount of the investment in associate at year-end?

Reference no: EM132791823

Questions Cloud

Calculate morley loss or gain on redemption : Calculate Morley's loss or gain on redemption. On January 1, 2016, Morley Electronics issued bonds with a par value of $1,350,000 at 95
Advocacy and community practice proposal : Describe how to apply professional use of self and leadership skills through the use of the technology standards to address and advance social and economic
What amount be reported as investment for Czech Company : At the beginning of current year, Czech Company purchased 10% of Prague Company. What amount should be reported as investment in associate at year-end?
Describe how they apply social work technology standards : Describe how they apply social work technology standards with the use of social media or online communication tools to address economic, environmental
What is the carrying amount of the investment in associate : What is the carrying amount of the investment in associate at year-end? At the beginning of current year, Croatia Company acquired 20% of outstanding ordinary.
What amount of gain on sale of investment be recognized : During the year, the entity received 50,000 shares rights from the investee. What amount of gain on sale of investment should be recognized in the current year?
What total cost should be recorded for the new shares : What total cost should be recorded for the new shares that are acquired by exercising the rights? Bern Company owned 50,000 ordinary shares held for trading.
What amount should be reported as gain on sale of investment : Romania Company acquired 40,000 ordinary shares on October 1, What amount should be reported as gain on sale of investment in the current year?
What amount was debited to investment in equity securities : Malta Company issued right to subscribe to share capital, What amount was debited to Investment in equity securities when all the share rights were exercised?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd