On January 1, 2022,Shot Co. acquired 75% of Good Inc Information on acquisition date: Good tidentifiable...

  

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On January 1, 2022,Shot Co. acquired 75% of Good Inc Information on acquisition date: Good tidentifiable assets have a carrying amount of Php70,000 and fair value Php100,000. The difference is due to the following: CA FV FV Adj. Inventory 25,000 37,000 12,000 Equipment - net 42,000 60,000 18,000 The remaining useful life of the equipment is 6 years. Information on year-end: Statement of Financial Position As of December 31, 2022 ASSETS Cash Accounts receivable Inventory Investments in Bonds (Cost) Investment in Subsidiary (Cost) Equipment, net TOTAL ASSETS LIABILITY AND EQUITY Accounts Payable Bonds Payable Total Liabilities Ordinary Share Capital Share Premium Retained Earnings Total Equity TOTAL LIABILITIES & EQUITY Shot 154,000 62,000 87,000 42,000 82,500 152,000 579,500 119,500 119,500 170,000 65,000 225,000 460,000 579,500 Good 87,000 72,000 50,000 35,000 244,000 49,000 75,000 124,000 40,000 10,000 70,000 120,000 244,000 Statement of Profit or Loss For the year ended December 31, 2022 Sales Cost of goods sold Gross Profit Depreciation Expense Distribution Costs Interest Income Interest Expense Profit for the year Shot 500,000 (300,000) 200,000 (48,000) (18,000) 7,500 141,500 Scenario I - NCI is measured using proportionate share Compute for the balances of the following: Good 230,000 (151,000) 79,000 (7,000) (12,000) The following intercompany transaction occurred in 2022: • On January 1, 2022, Good. purchased 60% of the outstanding bonds of Shot Co. from the open market for Php40,500. XYZ measured the bonds at amortized cost and recognized Php7,500 interest income, including the amortization of the bond discount. • On December 31, 2022 it was determined that goodwill is impaired by Php1,500. g) Consolidated Total Liabilities as of December 31, 2022 h) Consolidated Retained Earnings as of December 31, 2022 i) Non-Controlling Interest as of December 31, 2022 (10,000) 50,000 a) Goodwill b) Good Retained Earnings - January 1, 2022 c) Gain on extinguishment of Debt for the year ended December 31, 2022 d) Good Adjusted Profit for distribution for the year ended December 31, 2022 e) Consolidated Profit on December 31, 2022 f) Consolidated Total Asset as of December 31, 2022 Scenario II - NCI is measured using FV method. FV of NCI amounted to Php27,500. Compute for the balances of the following: a) Goodwill b) Good Adjusted Profit for distribution for the year ended December 31, 2022 c) Consolidated Profit on December 31, 2022 d) Consolidated Total Asset as of December 31, 2022 e) Consolidated Retained Earnings as of December 31, 2022 f) Non-Controlling Interest as of December 31, 2022 On January 1, 2022,Shot Co. acquired 75% of Good Inc Information on acquisition date: Good tidentifiable assets have a carrying amount of Php70,000 and fair value Php100,000. The difference is due to the following: CA FV FV Adj. Inventory 25,000 37,000 12,000 Equipment - net 42,000 60,000 18,000 The remaining useful life of the equipment is 6 years. Information on year-end: Statement of Financial Position As of December 31, 2022 ASSETS Cash Accounts receivable Inventory Investments in Bonds (Cost) Investment in Subsidiary (Cost) Equipment, net TOTAL ASSETS LIABILITY AND EQUITY Accounts Payable Bonds Payable Total Liabilities Ordinary Share Capital Share Premium Retained Earnings Total Equity TOTAL LIABILITIES & EQUITY Shot 154,000 62,000 87,000 42,000 82,500 152,000 579,500 119,500 119,500 170,000 65,000 225,000 460,000 579,500 Good 87,000 72,000 50,000 35,000 244,000 49,000 75,000 124,000 40,000 10,000 70,000 120,000 244,000 Statement of Profit or Loss For the year ended December 31, 2022 Sales Cost of goods sold Gross Profit Depreciation Expense Distribution Costs Interest Income Interest Expense Profit for the year Shot 500,000 (300,000) 200,000 (48,000) (18,000) 7,500 141,500 Scenario I - NCI is measured using proportionate share Compute for the balances of the following: Good 230,000 (151,000) 79,000 (7,000) (12,000) The following intercompany transaction occurred in 2022: • On January 1, 2022, Good. purchased 60% of the outstanding bonds of Shot Co. from the open market for Php40,500. XYZ measured the bonds at amortized cost and recognized Php7,500 interest income, including the amortization of the bond discount. • On December 31, 2022 it was determined that goodwill is impaired by Php1,500. g) Consolidated Total Liabilities as of December 31, 2022 h) Consolidated Retained Earnings as of December 31, 2022 i) Non-Controlling Interest as of December 31, 2022 (10,000) 50,000 a) Goodwill b) Good Retained Earnings - January 1, 2022 c) Gain on extinguishment of Debt for the year ended December 31, 2022 d) Good Adjusted Profit for distribution for the year ended December 31, 2022 e) Consolidated Profit on December 31, 2022 f) Consolidated Total Asset as of December 31, 2022 Scenario II - NCI is measured using FV method. FV of NCI amounted to Php27,500. Compute for the balances of the following: a) Goodwill b) Good Adjusted Profit for distribution for the year ended December 31, 2022 c) Consolidated Profit on December 31, 2022 d) Consolidated Total Asset as of December 31, 2022 e) Consolidated Retained Earnings as of December 31, 2022 f) Non-Controlling Interest as of December 31, 2022

Answer rating: 100% (QA)

Scenario I Goodwill Fair Value of Good Inc Proportionate share of Net Identifiable Assets Php100000 ... View the full answer