Reference no: EM133188190
Question - On January 1, 2022, Coach Sarah acquired 30,000 out of 100,000 outstanding ordinary shares of Popsters for P90,000 or 30% interest. For the six months ended June 30, 2022, Popsters reported net income of P40,000.
On July 1, 2022, Coach Sarah acquired additional 60,000 ordinary shares of Popsters or 60% interest at a price of P4 per share or total cost of P240,000. Coach Sarah paid P20,000 acquisition related costs and P10,000 indirect costs of business combination. The acquisition price per share of the additional shares clearly reflected the fair value of the existing interest of Coach Sarah in Popsters.
It is the policy of Coach Sarah to initially measure the noncontrolling interest using the proportionate method. The fair value of the noncontrolling interest in net assets of the acquiree is reliably measured at P50,000. At the acquisition date, the net assets of Popsters were reported at P400,000. An asset of Popsters was overvalued by P50,000 while one liability was overvalued by P30,000.
Required - What is the gain on remeasurement of the existing Investment in Popsters as a result of step acquisition?
|
Explain the application of forecasting methods
: Explain the Application of Forecasting Methods and Explain How Forecasting Methods Could be Used in Life and Business Situations
|
|
What is the history of the legislation
: I am in need of help answering these questions for a paper I'm writing. I am writing about the legislation/policy Bill AB-2256, The purpose of this bill is to a
|
|
Communicating in a workplace environment
: Which style works best when communicating in a workplace environment? How can the style effect how well the audience is influenced?
|
|
Sources change depending on the market
: This case concerns the marketing efforts to build Red Bull's brand equity, a product first discovered in Thailand and launched in Austria in 1987. The case disc
|
|
What is the gain on remeasurement of the existing investment
: For the six months ended June 30, 2022, Popsters reported net income of P40,000. What is the gain on remeasurement of the existing Investment
|
|
Recommendations for team development
: If your team members are not as productive as usual, lack initiative or motivation, are dissatisfied and at odds with each other, it's time for a tune-up. Just
|
|
Disruptive technology successful
: Research and identify a successful disruptive technology that has been launched in the last 5 years. Choose none of the ABCD disruptive technologies (artificia
|
|
Influence company xyz decision
: Think about the cultural differences and similarities between both countries. Discuss how that would influence Company XYZ's decision to expand to that country.
|
|
Prepare the journal entry for the purchase on december
: The computer is expected to have a 5-year life and a $63,000 salvage value. Prepare the journal entry for the purchase on December 31, 2020
|