Reference no: EM132794368
Question - NORMAN Company - On January 1, 2020, NORMAN Company acquired a 10% interest in an investee for 3,500,000. The investment was accounted for as a passive investment and therefore accounted for using cost method. On January 1, 2021, the entity acquired a further 15% interest in the investee for 7,500,000. On such date, the carrying amount of the net assets of the investee was 40,000,000 and the fair value of the 10% interest was 4,700,000. The fair value of the net assets of the investee is equal to the carrying amount except for an equipment whose fair value exceeds carrying amount by 4,000,000. The equipment has a remaining life of 5 years. Also, the investee has outstanding 15% cumulative preference shares with P10 par value totaling to P10,000,000. The preferred dividends were not paid during 2020 and 2021.
The investee reported net income of 10,000,000 for 2021 and paid cash dividend of 5,000,000 on December 31, 2021.
Question 1: What amount of gain on re-measurement to equity should be recognized for 2021, if any?
Question 2: What is the implied goodwill arising from the acquisition?
Question 3: What is the total investment income to be reported by NORMAN during 2021?
Question 4: What is the carrying amount of the investment in associate on December 31, 2021?
|
Determine the amount that runner should report
: The Runner Company had receivables of $400,000, Determine the amount that Runner should report on its balance sheet at December 31, 20X2
|
|
Determine the total cost of financing the shortfall
: Determine the total cost of financing the shortfall over March and April.
|
|
Determine the total credit collections
: Determine the total credit collections that the company will make in December, that is, the total amount collected from past credit sales, in December.
|
|
Discuss problem related to geometric symbols
: Just about every temple, church, place of worship, and most religious art in general is symmetrical. Some art is composed of geometric designs.
|
|
What is the implied goodwill arising from the acquisition
: On January 1, 2020, NORMAN Company acquired a 10% interest in an investee for 3,500,000. What is the implied goodwill arising from the acquisition
|
|
What sticky retained earnings as of december would be
: What Sticky's retained earnings as of December 31, 2011, would be? Sticky Corporation reduced the projected life of its patent
|
|
Why did the given change occur
: In the 1870s and 1880s most Canadians saw Louis Riel as a rebel, a traitor, and even a murderer. By the 1970s and 1980s most Canadians viewed Riel favourably.
|
|
Determine the projected ending balance of cash on hand
: On January 1, Easton Company had cash on hand of $110,000. Determine the projected ending balance of cash on hand for January.
|
|
Compare european imperialism to current globalism
: Compare European imperialism to current globalism. How has each changed society, both in industrialized nations and developing nations?
|