What is the percentage of profit on cost

Assignment Help Accounting Basics
Reference no: EM133110533

Question - ABC Co. owns a branch. At the end of the month, the balance of the Allowance on overvaluation is P95,000. The branch reported the following: beg. inventories - P15,000; ending inventories - P100,000; shipments from Home Office P555,000; Sales - P800,000; Expenses - P200,000. What is the percentage of profit on cost that the Home office uses to bill the branch?

If ABC Co purchases the net assets of XYZ Co by issuing 50,000 shares of their P20 par value ordinary shares with a fair value of P30 per share and paying professional fees to arrange the acquisition amounting to P20,000; legal fees of P30,000; costs for maintaining the acquisition of the department, P30,000; cost of registering the securities, P25,000 and cost of issuing the securities, P15,000. Parent also determines contingent consideration to be paid in the future amounting to P100,000 on the date of acquisition but could go as high as P150,000. From the data, determine the total amount of share premium to be reported by ABC Co after the acquisition.

Reference no: EM133110533

Questions Cloud

Expected dividend and capital gains yields : Suppose Bon Temps is expected to experience zero growth during the first 3 years and then resume its steady-state growth of 4% in the fourth year.
What is the average value of marginal rate of substitution : What is the relationship between the average value of the marginal rate of substitution and the marginal rate of substitution of the median individual
What is the dividend yield : What is the dividend yield if the annual dividend amount is $0.75 and the stock price per share is $30?
What is an annuity : If we were to graph the returns of a stock against the returns of the S&P 500 Index, and the points did not follow a very ordered pattern, what could we say abo
What is the percentage of profit on cost : Sales - P800,000; Expenses - P200,000. What is the percentage of profit on cost that the Home office uses to bill the branch
Explain what a dividend declaration date : Explain what a dividend's declaration date, date of record, and ex-dividend date are.
What is the default risk premium : Koy Corporation's 5-year bonds yield 8.00%, and 5-year T-bonds yield 5.15%. The real risk-free rate is r* = 3.0%, the inflation premium for 5-year bonds is IP =
What is the amount of goodwill to be reported : Y Co. has unimpaired goodwill in the amount of P10,000. What is the amount of goodwill to be reported in the consolidated Statement of Financial Position
Suspension of dividends : By breaking its promise, had the bank acted unethically? What implications did the suspension of dividends have on the Group's valuation?

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.

  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!

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