est, Inc. holds 100 % of the common stock of Coast Company, an investment acquired for $680,000. Immediately following the combination, West's net assets have a book value of $1,150,000 and a fair value of $1,390,000. The book value and the fair value of Coast's net assets on the date of combination are $400,000 and $550,000, respectively. Immediately following the combination, a consolidated balance sheet is prepared Based on the information given above, goodwill will be reported in the consolidated balance sheet in the amount of: Select one: a. 150,000 b. 240,000 c. 130,000 d. 270,000

Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…

A: a.Fair Value of Consideration Given 1.Purchase consideration paid in cash-20,00,000 2.To be paid in…

Q: Bale Co. acquired Silo Inc. on December 31, 2021, in an acquisition business combination…

A: Consolidated net income for 2021 = Net Income - Direct Combination Costs - Indirect Costs

Q: Prince Corporation holds 75 percent of the common stock of Sword Distributors Inc., purchased on…

A: Journal entry refer to recording of transactions into the day book of the company and it is vital…

Q: Man merged with San Corporation in a business combination in which San issued 30,000 shares of its…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1, for P280,000. RR’s…

A: All assets, liabilities, equity, income, expenses, and cash flows of the parent business and its…

Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…

A: SOLUTION GOODWILL IS AN INTANGIBLE ASSETS THAT ACCOUNTS EXCESS PURCHASE PRICE OF ANOTHER COMPANY.

Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…

A: Goodwill = consideration  paid - fair value of net assets

Q: Pina corp holds 100 percent of the common stock of Tina corp, an investment acquired for P520,000.…

A: Consolidated balance sheet will be prepared by the entity when it was having subsidiaries or many…

Q: West, Inc. holds 100 percent of the common stock of Coast Company, an investment acquired for…

A: When one company purchases shares in another company, then first company is known as parent company…

Q: On January 1, 2021, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction…

A: 1.

Q: West, Inc. holds 80% of the common stock of Coast Company, an investment acquired for $680,000.…

A: At the time of acquisition of shares or business of another company, if net assets value is less…

Q: Mattoon, Inc., owns 80 percent of Effingham Company. For the current year, this combined entity…

A:

Q: On January 1, 2020, Pail Corporation acquired 80 percent of Sand Company's common stock for $540,000…

A: A consolidated balance sheet is a financial statement that shows the financial positions of a parent…

Q: n January 1, 2018, PNB and Allied Bank entered into a contract of merger wherein PNB will issue…

A: Solution Concept There is a goodwill in business combination when , purchase price is greater than…

Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…

A: Solution:- 1)Preparation of journal entry to record the assets acquired and the liabilities assumed…

Q: ublic Corporation acquired 90 percent of Station Company’s voting common stock on January 1, 20X1,…

A: Step 1 Journal is the part of book keeping.

Q: On January 1, 20X1, Par Inc acquires 85.77% of Sub Corp for $211,625 in cash. Immediately before the…

A: 1. Fair value method 2. net assets method

Q: On January 1, 2018, Johnsonville Enterprises, Inc., acquired 80 percent of Stayer Company’s…

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a…

Q: Sheman Corporation exchanged its common stock, worth P500,000 for all of the net assets of Darna…

A: In  case one company overtake the assets and liabilities of another company , then accounting for…

Q: Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1,…

A: In the given question, we are provided with the data of a public corporation. The corporation has…

Q: On January 1, 2017, Greenly Corporation acquired all of Lindy Company's common stock for $935,000.…

A: Push down accounting:- Push down accounting is referred to as a book-keeping method of accounting.…

Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…

A: Goodwill is the amount of consideration paid over and above the acquisition cost of the business.…

Q: Tree, Inc., has held a 10 percent interest in the stock of Limb Company for several years. Because…

A: As per relevant standard if an entity makes an investment then which is less than 20% then such…

Q: Subsidiary Company was merged with Parent Corporation on December 31, 2021. In the business…

A: Retained earnings immediately after the combination is P4,035,000. Explanation:

Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…

A: SOLUTION FAIR VALUE OF ASSET IS THE AMOUNT PAID IN A TRANSACTION BETWEEN PARTICIPANTS IF IT SOLD IN…

Q: Price Company issued 8,740 shares of its $20 par value common stock for the net assets of Sims…

A: In case of business combination purchased consideration for issue of stock shall be taken at fair…

Q: OHIO CORP. exchanged its common stock worth P280,000 for all of the net assets of OHELLO INC. in a…

A: Ans. In this case, the acquirer is OHIO CORP. and acquiree is OHELLO Inc..  In business combination,…

Q: Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value.…

A: The question is based on the concept of Financial Accounting.

Q: On January 1, 2021, Cameron Inc. bought 10% of the outstanding common stock of Lake Construction…

A: SOLUTION WORKING NOTE- PARTICULARS INVESTEE NET ASSETS OWNERSHIP INTEREST  NET ASSET PURCHASED…

Q: Following are separate income statements for Austin, Inc., and its 80 percent–owned subsidiary, Rio…

A:

Q: Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1,…

A: Consolidated financial statements are those statements that are prepared to present the assets,…

Q: In the consolidated statement of financial position of Yogi and its subsidiary Bear at 31 December…

A: Goodwill is an intangible asset shown in consolidated statement of financial position i.e. balance…

Q: ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January…

A: The company ABC has purchased all of XYZ Inc’s Common Shares for P40,000 in cash. The acquisition…

Q: Washburn Company owns 75 percent of Metcalf Company’s outstanding common stock. During the current…

A: Consolidation of financial statements is a process of reporting the holding and subsidiary…

Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…

A: 1. Date Account Titles and Explanation Debit Credit 1 Jan Cash 92,000     Receivables 208,250…

Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: What is the amount of consolidated comprehensive income reported for 20x9? What is the amount of…

A:

Q: On January 1, 2018, Johnsonville Enterprises, Inc., acquired 80 percent of Stayer Company’s…

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a…

Q: Pete Corporation and Sol Company agreed to combine their businesses, with Pete Corporation as the…

A:

Q: At the beginning of the current year, an entity acquired 40% of the outstanding ordinary shares of…

A: Investment income is the earnings of the company made from the holding of shares in another company.

Q: On January 1, 20x8, Bristol Company acquired 80 percent of Animation Company's common stock for…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: West, Inc. holds 100% of the common stock of Coast Company, an investment acquired for $680,000.…

A: In case of consolidation, the net assets at book value of the holding company and the subsidiary…

Q: Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In…

A: Goodwill impairment loss=Carrying value of goodwill-Impaired fair value of goodwill

Q: Compute the balance of Buildings and Equipment, net to be reported in the consolidated balance sheet…

A: While preparing consolidated balance sheet, all the assets and liabilities of both companies would…

Q: Compute the balance of Inventory to be reported in the consolidated balance sheet immediately after…

A: RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1 thus RR Records Inc. is…

Q: What is the amount of total assets of PNB on January 1, 2018 after the merger?

A: The answer for the multiple choice question and relevant working are presented hereunder : As of…

Q: Rivendell Corporation and Foster Company merged as of January 1, 2019. To effect the merger,…

A:

Q: Arryn, Inc., owns 95 percent of Stark Corporation’s voting stock. The acquisition price exceeded…

A: Calculate the total operating income.

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.