Professional Documents
Culture Documents
CHAPTER 15
15-1: d
15-2: a
15-3: c
15-1: d
15-2: a
15-3: c
13-1: c
13-2: a
51
Plant assets – Pall Company (at book value) P 220,000
Plant assets – Mall Company (at fair value) 180,000
CHAPTER 15
15-1: d
15-2: a
15-3: c
15-1: d
15-2: a
15-3: c
13-1: c
13-2: a
52
Plant assets – Pall Company (at book value) P 220,000
Plant assets – Mall Company (at fair value) 180,000
CHAPTER 15
15-1: d
15-2: a
15-3: c
15-1: d
15-2: a
15-3: c
13-1: c
13-2: a
53
COMPUTATIONAL
13-1: c
13-2: a
13-3: b
13-4: a
MULTIPLE CHOICES - COMPUTATIONAL
15-1: d
15-2: a
15-3: c
13-1: c
13-2: a
54
At billed price (P30,000 + P180,000) P210,000
At cost (P210,000 / 120%) MULTIPLE CHOICES -
COMPUTATIONAL
13-1: c
13-2: a
13-3: b
13-4: a
MULTIPLE CHOICES - COMPUTATIONAL
15-1: d
15-2: a
15-3: c
MULTIPLE CHOICES - COMPUTATIONAL
20-1: b
55
Amortization of patents (S$ 4,000 x P28.20) 112,800
Rent expense (S$ 10,000 x P28.20) 282,000
Total P564,000
Average rate (P28.20) is used to translate all expenses since this is a reasonable
estimation.
20-2: b
20-3: d
Average rate for the year is used in translating depreciation expense because this is more
reasonable estimation than the rate when the related asset was acquired (P4.80).
Forex
ed (P4.80).
19-5: a.
CHAPTER 20
56
20-1: b
20-2: b
20-3: d
15-1: d
15-2: a
15-4: a
15-5: a
57
Price paid P350,000
Non-controlling interest (P350,000/80%) x 20% 87,500
Total 437,500
Less fair value of net assets excluding goodwill 330,000
Goodwill P107,500
15-6: a
Inventory (
15-6: a
15-1: d
15-2: a
15-4: a
15-5: a
58
MULTIPLE CHOICES - COMPUTATIONAL
15-1: d
15-2: a
13-1: c
13-2: a
13-3: b
13-4: a
MULTIPLE CHOICES - COMPUTATIONAL
15-1: d
15-2: a
59
Price paid P 450,000
Non-controlling interest (P450,000/90%) x 10% 50,000
Total 500,000
Less fair value of net assets acquired (P360,000 – P40,000) 320,000
Goodwill P 180,000
15-3: c
13-1: c
13-2: a
13-1: c
13-2: a
13-3: b
13-4: a
MULTIPLE CHOICES - COMPUTATIONAL
15-1: d
60
15-2: a
15-3: c
13-1: c
13-2: a
13-1: c
13-2: a
13-3: b
13-4: a
MULTIPLE CHOICES - COMPUTATIONAL
15-1: d
61
Less fair value of net assets acquired (P6,100 – P2,800) 3,300,000
Goodwill P 700,000
15-2: a
15-3: c
13-1: c
13-2: a
13-1: c
13-2: a
13-3: b
13-4: a
MULTIPLE CHOICES - COMPUTATIONAL
15-1: d
62
Price paid P4,000,000
Less fair value of net assets acquired (P6,100 – P2,800) 3,300,000
Goodwill P 700,000
15-2: a
15-3: c
13-1: c
13-2: a
CHAPTER 15
15-1: d Average rate for the year is used in translating depreciation expense because
this is more reasonable estimation than the rate when the related asset was acquired
(P4.80).
63
19-5: a.
CHAPTER 20
20-1: b
20-2: b
19-5: a.
64
Balance sheet ($10,000 x P 58.8235) 588,235
Forex loss (increase) P ( 32,680)
CHAPTER 20
20-1: b
20-2: b
19-5: a.
65
CHAPTER 20
20-1: b
20-2: b
19-5: a.
CHAPTER 20
20-1: b
66
Amortization of patents (S$ 4,000 x P28.20) 112,800
Rent expense (S$ 10,000 x P28.20) 282,000
Total P564,000
Average rate (P28.20) is used to translate all expenses since this is a reasonable
estimation.
20-2: b
19-5: a.
CHAPTER 20
20-1: b
20-2: b
67
Machinery [(24,000 Ringgit ÷ 10) x P10.42] P 25,008
15-2: a
15-3: c
CHAPTER 15
15-1: d
15-2: a
15-3: c
68
CHAPTER 15
15-1: d
15-2: a
CHAPTER 15
15-1: d
15-2: a
15-3: c
69
CHAPTER 15
15-1: d
15-2: a
CHAPTER 15
15-1: d
15-2: a
15-3: c
70
CHAPTER 15
15-1: d
15-2: a
CHAPTER 15
15-1: d
15-2: a
15-3: c
71
CHAPTER 15
15-1: d
15-2: a
CHAPTER 15
15-1: d
15-2: a
15-3: c
72
CHAPTER 15
15-1: d
15-2: a
CHAPTER 15
15-1: d
15-2: a
15-3: c
73
CHAPTER 15
15-1: d
15-2: a
CHAPTER 15
15-1: d
15-2: a
15-3: c
74
CHAPTER 15
15-7: a
15-8: a
15-9: d
Therefore:
Total assets (P800,000 + P300,000 + P60,000) P1,160,000
Total liabilities (P250,000 + P155,000 + P160,000 + P5,000) 570,000
15-11: d
15-15: b
75
Price paid P260,000
NCI [(P260,000/80%) x 20%] 65,000
Total 325,000
Less fair value of net acquired (P450,000 – P210,000) 240,000
Goodwill P 85,000
15-17: b
15-20: a
Cash and cash equivalent (P70,000 + P90,000) P 160,000
Inventory (P100,000 + P60,000) 160,000
Property and equipment (P500,000 + P300,000) 800,000
Goodwill 85,000
Total assets P1,205,000
15-21: a:
Fair value per share:
New acquisition (P630,000/7,000 shares) P90
Fair value of previously owned shares (1,000* shares x P90) P 90,000 (10%)
Acquisition of new shares 630,000 (70%)
Total price paid for 80% interest P 720,000
Non-controlling interest (P720,000/80%) x 20% P 180,000
* P200,000 / P20 x 10% = 1,000 shares
15-22: c
Fair value of previously owned interest (10%) P 90,000
Price paid for new additional interest (70%) 630,000
Non-controlling interest 180,000
Total 900,000
Less fair value of net assets acquired (P910,000 – P130,000) 780,000
Goodwill P120,000
76
15-23: a The amount reported is equal to Primo’s retained earnings of P567,000
15-25: b
Cash P 40,000
Accounts receivable 20,000
Inventories (see 15-25) 140,000
Equipment (800,000 - 500,000) 300,000
Accounts payable (40,000)
Fair value of net assets P460,000
15-27: d
Goodwill P 10,000
Fair value of net assets acquired (15-25) 460,000
Total 470,000
NCI (163,000)
Price paid by Primo P 307,000
15-28: b
Parent NCI
Total 65% 35%
Company implied value P470,000 P307,000 P163,000
Less fair value of net assets 460,000 299,000 161,000
Goodwill P 10,000 P 8,000 P 2,000
15-29: b
Non-controlling interest should be valued at the higher amount between the following:
15-30: c
77
Inventory 400,000
Equipment 500,000
Current liabilities ( 250,000) 670,000
Gain on acquisition P(24,000)
Proof:
NCI does not share a gain on the acquisition. IFRS 3 (2008) provides that the gain is
attributed to the acquirer only.
PROBLEMS
Problem 15-1
78
Goodwill 210,000
Investment in Solo company stock 270,000
Non-controlling interest 30,000
To allocate excess
Problem 15-2
79
date of acquisition.
Problem 15-3
80
(1) Common stock – Sotto 100,000
APIC – Sotto 200,000
Retained earnings – Sotto 600,000
Investment in Sotto stock 720,000
Non-controlling interest 180,000
To eliminate equity accounts of Sotto at date of
acquisition.
Problem 15-4
81
Consideration given (20,000 shares x P6) P120,000
Less fair value of net assets:
Current assets P100,000
Property and equipment 85,000
Other assets 40,000
Current liabilities (60,000)
Mortgage payable (25,000) 140,000
Gain on acquisition P(20,000)
Problem 15-5
Computation of goodwill:
Consideration given P250,000
Less fair value of net assets (P290,000 – 60,000) 230,000
Goodwill P 20,000
Problem 15-6
a. Investment in Seed Company 350,000
Cash 350,000
82
To record acquisition of 100% of Seed company stock.
83
Retained earnings
Pill 1,300,000 (2) 30,000 1,330,000
Seed 180,000 (1)180,000
Total 5,500,000 800,000 420,000 420,000 6,050,000
Problem 15-7
84
Additional paid-in capital 360,000 (1)360,000
Retained earnings
Pop 330,000 330,000
Sea (50,000) (1) 50,000
Problem 15-8
85
Cash 300,000 50,000 350,000
Accounts receivable 200,000 100,000 300,000
Inventory 200,000 80,000 (2) 20,000 300,000
Land 100,000 50,000 (2) 10,000 160,000
Building 600,000 400,000 (2) 50,000 950,000
Equipment 800,000 200,000 (2) 60,000 940,000
Investment in S Company 500,000 (2) 30,000 (1)530,000 -
Total 2,700,000 880,000 3,000,000
Credits
Accounts payable 150,000 60,000 210,000
Bonds payable 290,000 (2) 50,000 240,000
Common stock – P Company 1,500,000 1,500,000
Common stock – S Company 100,000 (1)100,000
APIC – S Company 200,000 (1)200,000
Retained earnings – P Co. 1,050,000
Retained earnings – S Co. 230,000 (1)230,000 1,050,000
Total 2,700,000 880,000 640,000 640,000 3,000,000
Problem 15-9
* NCI is measured at its proportionate interest in S Company’s net assets because the assessed
fair value of P80,000 is smaller.
86
Company Company Debit Credit dated
Debits
Cash 300,000 50,000 350,000
Accounts receivable 200,000 100,000 300,000
Inventory 200,000 80,000 (2) 20,000 300,000
Land 100,000 50,000 (2) 10,000 160,000
Building 600,000 400,000 (2) 50,000 950,000
Equipment 800,000 200,000 (2) 60,000 940,000
Investment in S Company 500,000 (1)424,000 -
(2) 76,000
Goodwill (2)100,000 100,000
Total 2,700,000 880,000 3,100,000
Credits
Accounts payable 150,000 60,000 210,000
Bonds payable 290,000 (2) 50,000 240,000
Common stock – P Co. 1,500,000 1,500,000
Common stock – S Co. 100,000 (1)100,000
APIC – S Co. 200,000 (1)200,000
Retained earnings – P Co. 1,050,000 1,050,000
Retained earnings – S Co. 230,000 (1)230,000
Problem 15-10
87
Accounts receivable 200,000 150,000 350,000
Inventory 150,000 130,000 (2) 10,000 290,000
Land 50,000 80,000 (2) 40,000 170,000
Equipment 300,000 200,000 (2) 20,000 480,000
Investment in S Company 542,000 (2)128,000 (1)670,000 -
Long-term investment in MS 100,000 125,000 (2) 15,000 240,000
Total 1,442,000 785,000 1,730,000
Problem 15-11
3. Land 100,000
Building 200,000
Bond discount 40,000
Goodwill 100,000
Deferred taxes 20,000
Retained earnings 840,000
Additional paid in capital 1,300,000
88
4. Common stock 600,000
Additional paid in capital 1,300,000
Investment in Sun Company
1,900,000
Problem 15-12
Supporting computations:
Entry to record the issuance of 300 shares – Books of X Company (legal parent)
89
2. X Company and Subsidiary P Company
Consolidated Statement of Financial Position
December 31, 2013
90