Puncho Company is acquiring the net assets of Semos Company in exchange for common stock valued at $900,000. The Semos identifiable net assets have book and fair values of $400,000 and $800,000, respectively. Compare accounting for the acquisition (including assignment of the price paid) by Puncho with accounting for the sale by Semos.

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired the net assets of CARDO CO and SYANO CO PROMDI CO issues  CARDO CO = 30000…

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: On August 1, 20x1, German Corp. acquired all the identifiable assets and assumed the liabilities of…

A: As per IFRS 3 Acquisition-related costs incurred by the acquiring company to effect the business…

Q: Justin Company purchased a plant facility consisting of land and building from Joshua Company in…

A: Following is the answer to the given question

Q: On January 1, 2021, Parent Co. acquired the identifiable net asset of Subsidiary, Inc.. On this…

A: Formula: Amount charged to Profit or loss = Legal fees + Due diligence cost + General and…

Q: Acquirer Company purchased the net asset of Acquiree Company by paying cash of P800,000 and issuing…

A: Particulars Amount Amount Fair value of the consideration given up           Cash $800,000…

Q: Justin Company purchased a plant facility consisting of land and building from Joshua Company in…

A: Book value is the price you initially paid for the property. Its resale value may have gone up or…

Q: Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on…

A: A consolidation worksheet is a spreadsheet that is used to create annual financial reports for a…

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: Protrade Corporation acquired 70 percent of the outstanding voting stock of Seacraft Company on…

A: Consolidated financial statements is prepared when the company acquires 50% or more the voting…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: Goodwill is an intangible asset that is related to the takeover of one company by another. In fact,…

Q: On January 1, 2025, Lili Company acquired the identifiable net assets of Jen Inc. On this date, the…

A: According to IFRS 3, Acquisition related cost incurred by the acquiring company to effect the…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired the net assets of CARDO CO and SYANO CO Purchase consideration of CARDO CO =…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition is the cost at which one business firm or any individual acquires another…

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: Use the following to answer questions 8 through 10: On May 1, 2021, Jazzie Co. agreed to sell the…

A: SOLUTION-   WORKING NOTE- GAIN ON ASSET  SALE =  ($80 MILLION - $ 48 MILLION)…

Q: On January 1, 2021, Parent Co. acquired the identifiable net asset of Subsidiary, Inc.. On this…

A: The equity of the subsidiary represents its net assets (share capital plus all reserves). It's worth…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition means total expenses incurred by entity to purchase new entity or assets. Here…

Q: Suppose that Purchasing Company acquires 90% of Selling Company by issuing stock valued at $800,00O.…

A: Formula Used:

Q: On September 1, 20Y8, Vernon Corporation acquired Barlow Enterprises for a cash payment of…

A: Purchase Consideration   2,300,000 Less: Net Assets of Barlow Enterprises   1,500,000 Goodwill…

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp's common stock for P160,000 cash. The…

A: Pfizer Corp acquired 80% share in Vax Corp.   So  now as per law Pfizer…

Q: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired net assets of CARDO CO. and SYANO CO. Purchase consideration of CARDO CO. =…

Q: Justin Company purchased a plant facility consisting of land and buildingfrom Joshua Company in…

A: According to GAAP principles, assets should be recorded at the fair value at the time of purchased.…

Q: purchases 80% of the outstanding shares of S Company for P9,000,000. The carrying value of S…

A: Goodwill - It is an intangible asset. The value of an organisation or a company's good deeds, brand…

Q: S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and…

A: Consolidated financial statements are the summarized financial statements of an organization…

Q: Par Inc purchased all of the outstanding common shares of Sub Corp for cash of $68,951 on Jan 1,…

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

Q: Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on…

A: The financial statements of a group of entities that are presented as if they were a single economic…

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: If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will…

A: PROMDI CO. acquired net assets of CARDO CO. and SYANO CO. Purchase consideration of CARDO CO. =…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Fair value of net identifiable assets =  P133,000 + P900,000 - P10,000  = P1,023,000

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition is a concept that includes all the costs at the time of purchase. It is net…

Q: On January 17, Lina's Co. Paid $1,600,000 for all the issued and outstanding common stock of Ralph…

A: Goodwill means the reputation of the company due to any factor like location , product , price ,…

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A: Introduction: Goodwill is recognized when the purchase price is more than the total fair value of…

Q: Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on…

A: COGS stands for Cost of Goods Sold which are located in Trading A/c.In simple words it is the price…

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A: Consolidation is the process combining the parent’s financial statements with their subsidiary.

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A: In preparation of consolidated financial statements, parents corporations eliminate/discard the…

Q: Justin Company purchased a plant facility consisting of land and building from Joshua Company in…

A: Acquisition:- When one company acquires the shares of another company by paying purchasing…

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: Business combination is a process where one firm acquires the other firm by purchasing most of its…

Q: On January 1, 2021, Parent Co. acquired the identifiable net asset of Subsidiary, Inc. On this date,…

A: At the time of business combination, all the costs related to the acquisition of the acquirer are…

Q: XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid…

A: Cost of acquisition is the total cost incurred (including transaction cost) by a company to overtake…

Q: If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value…

A: Given information, CARDO Co. purchased the Net Assets of SYANO Co. by issuing 5,000 Shares (par…

Q: Jasper Company acquired 80% of Fey Company at the beginning of the current year. Jasper paid…

A:

Q: P Company purchases 80% of the outstanding shares of S Company for P9,000,000. The carrying value of…

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

Q: On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The…

A: It is pertinent to note that for calculation of goodwill fair value of net assets needs to be taken…

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A:

Q: How much is the consolidated profit? On January 2, 2021, ABC Co. acquired 60% interest in DDD Corp.…

A: consolidated profit = consolidated revenue - consolidated expenses - consolidated operating expenses…