Reference no: EM132974471
Question - On January 1, 2020, Hirap Company purchased 40% of the outstanding ordinary shares of Mo Company, paying P19,200,000 when the carrying amount of the net assets of Mo Company equaled P37,500,000. The difference was attributed to equipment which had a carrying amount of P9,000,000 and a fair market value of P15,000,000 and to building which had a carrying amount of P7,500,000 and a fair value of P12,000,000. The remaining useful life of the equipment and building was 4 years and 12 years, respectively.
During 2020, Mo Company reported net income of P15,000,000 and paid cash dividend of P7,500,000.
1. What is the excess of cost over the carrying amount of the net assets acquired?
a. P9,000,000 c. P15,000,000
b. P 0 d. P4,200,000
2. What is the amount of investment income for 2020?
a. P5,400,000 c. P6,000,000
b. P5,250,000 d. P3,000,000
3. What is the carrying amount of the investment in associate on December 31, 2020?
a. P21,450,000 c. P19,200,000
b. P22,200,000 d. P24,450,000
|
How much salary expense is incurred or recorded by company
: Week is paid to her at the end of the first week in January 2020. How much salary expense is incurred (recorded) by the company in 2020?
|
|
What are the net operating cash flows in years
: The Campbell Company is considering adding a robotic paint sprayer to its production line. What are the net operating cash flows in Years 1, 2, and 3
|
|
Find what is amount of department store cost of goods sold
: The department store uses accrual-basis accounting. Based on the preceding information,What is the amount of the department store's cost of goods sold in 2020?
|
|
How are benchmarks used in setting a preliminary judgement
: How are benchmarks used in setting a preliminary judgement about materiality? How will these benchmarks differ based on the client's industry
|
|
What is the excess of cost over the carrying amount
: During 2020, Mo Company reported net income of P15,000,000 and paid cash dividend of P7,500,000. What is the excess of cost over the carrying amount
|
|
What was the end of the year balance in finished goods
: What was the end of the year balance in finished goods? Pauline's Printers Inc. creates custom print work such as wedding invitations, graduation announcements
|
|
Prepare and operating statement for the month ending
: Calculate ALL variances and prepare and operating statement for the month ending 31 January 2021
|
|
What increase in selling price would need to occur to cover
: Fixed costs are $450,000. What increase in selling price would need to occur to cover the 15% increase in fixed costs but still earn 500,000 after tax
|
|
Find how much better is second contract for martinez hardy
: To sweeten the deal, the president of player personnel for the Seals has now offered a $26,630,000, five-year contract. How much better is the second contract?
|