Documente Academic
Documente Profesional
Documente Cultură
AK
BK
2,625,000.00
2,056,250.00
87,500.00
131,250.00
297,500.00 196,875.00
21,875.00 15,312.50
2,218,125.00
1,975,312.50
2,935,406.25
70%
4,193,437.50
1,258,031.25
30%
Problem 2
Cash
A/R
Inv
Machinery
A/P
N/P
Capital
Adj.: Dep
Adj.: Inventory
Adj. Cap
Cash Investment
AB
136,000.00
88,000.00
304,000.00
480,000.00
(216,000.00)
792,000
20,000
812,000
812,000
QR
76,000.00
48,000.00
364,000.00
440,000.00
(144,000.00)
(60,000.00)
724,000
274,400
Total
486,400.00
(24,000.00)
700,000
274,400
974,400
Problem 3
A/R
Inv.
Machinery
Intangibles
Net Investment
Cash
Equipment
Net Investment
CD
Adj.
400,000.00
(32,000.00)
1,120,000.00
(80,000.00)
2,240,000.00
(48,000.00)
920,000.00
(56,000.00)
CD
368,000.00
1,040,000.00
2,192,000.00
864,000.00
4,464,000.00
MJ
3,120,000.00
1,344,000.00 (Squeezed)
4,464,000.00
Problem 4
Capital Beg
Capital End
Total Decrease
Decrease (exp)
Acc. Dep
MZ's Investment of
Equipment
Net Effect
695,000.00
605,000.00
90,000.00
50,000.00
(40,000.00)
CD
MV
495,000.00
455,000.00
Problem 5
A/R
MG
262,500.00
AN
TOTAL
195,000.00
457,500
605,000.00
495,000.00
1,100,000.00
55%
45%
Inv
PPE
A/P
Net Assets
Cash invested
450,000.00
912,500.00
(150,000.0000)
1,475,000.00
2,512,500.00
3,987,500.00
207,500.00
822,500.00
(112,500.0000)
1,112,500.00
2,512,500.00
3,625,000.00
657,500
1,735,000
(262,500.00)
2,587,500
5,025,000
7,612,500
CR
175,000.00
150,000.00
(40,000.00)
285,000.00
240,000.00
120,000.00
16,625.00
35,000.00
90,000.00
141,625.00
285,000.00
426,625.00
21,000.00
43,750.00
60,000.00
124,750.00
360,000.00
484,750.00
AY
261,000.00
27,500.00
288,500.00
AN
TOTAL
259,000.00
520,000.00
27,500.00
55,000.00
286,500.00
575,000.00
360,000.00
Total
37,625.00
78,750.00
150,000.00
266,375.00
Problem 7
Salary
Interest
Bonus
Residual Income
Profit Share
Problem 8
PR
Jan-01
Mar-01
Apr-01
Jul-01
Oct-01
SB
Jan-01
Mar-01
Apr-01
Jul-01
Oct-01
Months Outstanding
12 4,800,000.00
10 1,500,000.00
9
(450,000.00)
110,000.00
3
330,000.00
6,180,000.00
515,000.00
Months Outstanding
12 6,000,000.00
(200,000.00)
9 (1,800,000.00)
100,000.00
3
300,000.00
4,500,000.00
375,000.00
400,000.00
150,000.00
(50,000.00)
500,000.00
LM
Jan-01
Mar-01
Apr-01
Jul-01
Oct-01
Months Outstanding
12 3,600,000.00
10 3,750,000.00
(125,000.00)
6
(750,000.00)
180,000.00
3
540,000.00
7,140,000.00
300,000.00
375,000.00
PR
51,500.00
75,000.00
Interest
Salary
SB
37,500.00
125,000.00
118,750.00
131,900.00
413,150.00
131,900.00
258,400.00
595,000.00
LM
TOTAL
59,500.00
148,500.00
50,000.00
250,000.00
118,750.00
65,950.00
329,750.00
175,450.00
847,000.00
Problem 9
CD
Salary
Interest
Bonus
Residual
NH
1,250.00
1,500.00
8,250.00
13,750.00
24,750.00
GV
1,250.00
1,187.50
19,250.00
21,687.50
TOTAL
2,500.00
1,062.50
3,750.00
8,250.00
22,000.00
55,000.00
23,062.50
69,500.00
Problem 10
EZ
Jan-01
Apr-01
Jul-01
Sep-01
Oct-01
Ending
250,000.00
150,000.00
(125,000.00)
(225,000.00)
350,000.00
400,000.00
Months Outstanding
12 3,000,000.00
9 1,350,000.00
6
(750,000.00)
4
(900,000.00)
3 1,050,000.00
3,750,000.00
312,500.00
350,000.00
(100,000.00)
250,000.00
300,000.00
(200,000.00)
600,000.00
Months Outstanding
12 4,200,000.00
9
(900,000.00)
6 1,500,000.00
4 1,200,000.00
3
(600,000.00)
5,400,000.00
450,000.00
VX
Jan-01
Apr-01
Jul-01
Sep-01
Oct-01
Ending
EZ
Interest
Salary
Bonus
Residual
VX
25,000.00
125,000.00
(293,000.00)
(143,000.00)
TOTAL
36,000.00
61,000.00
175,000.00
300,000.00
(293,000.00)
(586,000.00)
(82,000.00)
(225,000.00)
250,000.00
(82,000.00)
168,000.00
Problem 11.1
RV
20% Purchase
Capital Balance
Problem 11.2
Purchase Price
Divide:
Total Part. Capital
Multiply
End Capital of RV & MC
RV Capital After Purchase
MC Capital After Purchase
Bonus to Old Partners
MC
525,000.00
105,000.00 420,000.00
GR
262,500.00
52,500.00 210,000.00
315,000.00
20%
1,575,000.00
80%
1,260,000.00
420,000.00
210,000.00
630,000.00
787,500.00
157,500.00
157,500.00
RV (75%)
MC (25%)
GR
420,000.00
210,000.00
472,500.00
157,500.00
892,500.00
367,500.00 315,000.00
Problem 12
AC
3,969,000.00
1,323,000.00
5,292,000.00
CC
4,704,000.00
(735,000.00)
588,000.00
735,000.00
5,292,000.00 -
Problem 13
AC
PJ
SR
MJ
AX
Problem 14
PV,BK, TF
Income
Adj.: Overvalued Inv.
Capital Before JP
PV,BK,TF
JP
PV
BK
TF
735,000.00
3,465,000.00
CC
997,500.00
714,000.00
630,000.00
966,000.00 3,307,500.00
Capital Transfer: SR to AX
Cash Contribution
388,500.00
231,000.00 Bonus
157,500.00 Revaluation
1,575,000.00
210,000.00
35,000.00
1,750,000.00
AC
1,470,000.00
367,500.00
1,837,500.00
588,000.00
588,000.00
294,000.00
1,470,000.00
CC
1,750,000.00
87,500.00
1,837,500.00
40%
40%
20%
Problem 15
JM
PK
CY
AC
293,562.50
147,437.50
147,000.00
588,000.00
CC
245,000.00
131,250.00
211,750.00 588,000.00
48,562.50
16,187.50
64,750.00
-
126,000.00
840,000.00
966,000.00
Problem 16.1
Retirement: Interest Sold to a Partner (similar to purchase la)
NP
280,000.00
Interest from RT
245,000.00
end Capital
525,000.00
Problem 16.2
RT, Cap
245,000.00
HK, Cap
11,200.00
NP, Cap
16,800.00
Cash
Problem 17
25%
VL
Beg Cap
Revaluation (300000)
Net Loss
Capital b4 Retirement
end Cap
Remember:
25%
MD
643,750.00
75,000.00
187,500.00 531,250.00
531,250.00 VL, Capital
MD, Capital
LV, Capital
Cash
481,250.00
75,000.00
187,500.00
368,750.00
3,750.00
365,000.00
273,000.00
- 245,000.00
28,000.00
273,000.00
50%
LV
TOTAL
1,125,000.00 2,250,000.00
150,000.00
300,000.00
- 375,000.00
(750,000.00)
900,000.00
7,500.00
892,500.00
531,250.00
3,750.00
7,500.00
11,250.00
542,500.00
Problem 18.
770000 + x - 196000 = 630000 + 0.8x
0.2x = 56000
x = 280000
Problem 19
Partnership Capital
Adj.
Cap before retirement
Cash Payment
Capital After Retirement
Problem 20
Partnership Capital
Adj.
Cap before retirement
Cash Payment
Capital After Retirement
348,250.00
26,250.00
322,000.00
93,100.00
228,900.00
340,000.00
40,000.00
380,000.00
95,000.00
285,000.00
10,000.00
25%
40,000.00
RetiringPartner
Old/Remaining Partners
VL, Capital
MD, Capital
LV, Capital
Cash
xx
xx
xx
xx
The Difference Between the Cash Paid and the Capital Balance of the partner prior to retirement
charged/added to the remaining partners. Addition or Charging will depend upon the Cash consideration given
by the partnership.
NCA
264,000.00
(82,500.00)
(77,000.00)
96,250.00
181,500.00
181,500.00
(55,000.00)
24,750.00
148,500.00
173,250.00
96,250.00
77,000.00
Liab
173,250.00
96,250.00
126,500.00
(110,000.00)
16,500.00
1/5
B
(24,750.00)
(5,500.00)
1/5
C
8,250.00
(5,500.00)
112,750.00
(30,250.00)
24,750.00
(5,500.00)
2,750.00
1,650.00
(3,850.00)
7,700.00
3,850.00
1,650.00
4,400.00
7,700.00
12,100.00
3,850.00
12,100.00
112,750.00
(63,250.00)
4,950.00
54,450.00
23,100.00
77,550.00
96,250.00
16,500.00
3/5
A
129,250.00
(16,500.00)
96,250.00
96,250.00
-
16,500.00 -
B
(24,750.00)
1/5
-
C
8,250.00
1/5
41,250.00
2,750.00
(8,250.00)
77,550.00
77,550.00
9,900.00 67,650.00
(27,500.00)
Safe Payments
3,850.00
3,300.00 550.00
38,500.00
12,100.00
3,300.00
8,800.00
divide
Beg
Asset Sold
B's defecit removal
Asset Sold
Assets Distributed
A
129,250.00
3/5
215,416.67
174,166.67
41,250.00
41,250.00
Total Cash Available
22,000.00
55,000.00
24,750.00
148,500.00
63,250.00
P1
41,250.00
41,250.00 P2
-
P1
P2
P3
104,500.00
104,500.00
24,750.00
A
104,500.00
24,750.00
1,650.00
130,900.00
550.00
550.00
Total
8,250.00
C
8,250.00
550.00
8,800.00
104,500.00
33,000.00
2,750.00
140,250.00
33,000.00
137,500.00
Liabilities Paid
Cash to be distibuted
173,250.00
140,250.00
*Critical Point To Remember: NonCash Assets Distributed to Partners during the liquidation are considered as cash payments to them.
Problem 2
Cash
1,950,000.00
(1,300,000.00)
650,000.00
420,000.00
1,070,000.00
1,730,000.00
2,800,000.00
(1,750,000.00)
1,050,000.00
875,000.00
175,000.00
NCA
5,500,000.00
Liab
1,550,000.00
5,500,000.00
(840,000.00)
4,660,000.00
(2,330,000.00)
2,330,000.00
1,550,000.00
200,000.00
1,750,000.00
2,330,000.00
1,750,000.00
(1,750,000.00)
-
2,330,000.00
D,Capital
2,375,000.00
81,250.00
2,456,250.00
(155,000.00)
2,301,250.00
(150,000.00)
2,151,250.00
L, Capital
1,625,000.00
(1,625,000.00)
-
A, Capital
1,900,000.00
243,750.00
2,143,750.00
(465,000.00)
1,678,750.00
(450,000.00)
1,228,750.00
2,151,250.00
(875,000.00)
1,276,250.00
1,228,750.00
SAFE PAYMENTS
2,151,250.00
2,505,000.00 - 626,250.00
1,525,000.00
- 650,000.00
875,000.00
NCA
Liab
1,228,750.00
5,730,000.00
5,730,000.00
5,130,000.00
5,130,000.00
3,380,000.00
3,380,000.00
(600,000.00)
1,228,750.00
- 1,878,750.00
- 650,000.00
650,000.00
-
6,150,000.00
(620,000.00)
6,150,000.00
875,000.00
1,375,000.00
1,250,000.00
6,750,000.00
2,700,000.00 (squeezed)
(1,535,000.00)
(220,000.00)
1,535,000.00
(1,535,000.00)
7,050,000.00
2,630,000.00
4,420,000.00
2,195,000.00
Cash
1,250,000.00
2,700,000.00
(220,000.00)
(1,535,000.00)
2,195,000.00
(2,195,000.00)
2,160,000.00
(25,000.00)
2,135,000.00
(2,125,000.00)
10,000.00
1,260,000.00
280,000.00
222,500.00
1,762,500.00
25%
7,050,000.00
1,940,000.00
330,000.00
222,500.00
2,492,500.00
25%
9,970,000.00
2,920,000.00
7,050,000.00
2,630,000.00
4,420,000.00
1,525,000.00
240,000.00
445,000.00
2,210,000.00
50%
4,420,000.00
2,510,000.00
Safe Payments
1,158,750.00
627,500.00
531,250.00
730,000.00
4,420,000.00
4,420,000.00
Liab
J
A
C
6,750,000.00 1,535,000.00 1,762,500.00
2,492,500.00 2,210,000.00
(2,000,000.00)
175,000.00
175,000.00
350,000.00
(55,000.00)
(55,000.00)
(110,000.00)
(1,535,000.00)
4,750,000.00
- 1,882,500.00
2,612,500.00 2,450,000.00
(695,000.00) (1,425,000.00)
(75,000.00)
4,750,000.00
- 1,187,500.00
1,187,500.00 2,375,000.00
(2,250,000.00)
(22,500.00)
(22,500.00)
(45,000.00) (6,250.00)
(6,250.00)
(12,500.00)
2,500,000.00
- 1,158,750.00
1,158,750.00 2,317,500.00
(531,250.00)
(531,250.00) (1,062,500.00)
627,500.00
627,500.00 1,255,000.00
1,158,750.00
627,500.00
531,250.00
1,740,000.00 NI
850,000.00 Salary
890,000.00 Residual
657,500.00
657,500.00
37,500.00
695,000.00
700,000.00
90,000.00
2,317,500.00
1,255,000.00
1,062,500.00
657,500.00
1,387,500.00
37,500.00
1,425,000.00
75,000.00
75,000.00
Problem 4
Cash
775,000.00
1,600,000.00
(175,000.00)
2,200,000.00
(950,000.00)
1,250,000.00
1,200,000.00
50,000.00
Max. Possible loss
NCA
6,750,000.00
(1,875,000.00)
4,875,000.00
4,875,000.00
Liabilities
1,100,000.00
(150,000.00)
950,000.00
(950,000.00)
-
4,875,000.00
20%
J
1,275,000.00
(55,000.00)
(35,000.00)
30,000.00
1,215,000.00
20%
C
1,625,000.00
(55,000.00)
(35,000.00)
30,000.00
1,565,000.00
60%
A
3,525,000.00
(165,000.00)
(105,000.00)
90,000.00
3,345,000.00
1,215,000.00
230,000.00
985,000.00
1,565,000.00
580,000.00
985,000.00
3,345,000.00
390,000.00
2,955,000.00
(275,000.00)
150,000.00
4,925,000.00
NCA
7,375,000.00
2,130,000.00
1,133,875.00
(1,043,875.00)
90,000.00 Witheld for future expense
Liab
1,125,000.00
40%
S
2,258,000.00
0.40
5,645,000.00
40%
C
2,778,000.00
0.40
6,945,000.00
5,645,000.00
6,945,000.00
1,300,000.00
5,645,000.00
5,645,000.00
20%
A
1,564,000.00
0.20
7,820,000.00
875,000.00
6,945,000.00
1,300,000.00
5,645,000.00
Income
2,570,000.00
175,000.00
520,000.00
520,000.00
35,550.00
555,550.00
260,000.00
435,000.00
420,000.00
200,000.00
620,000.00
420,000.00
TOTAL
730,000.00 P1
1,315,000.00 P2
150,000.00 All
2,195,000.00
955,000.00
88,875.00
1,043,875.00
Problem 1
Total Consideration
Stock Issued at FV
Additional Cash
Contingent Consideration
750,000.00
125,000.00
15,000.00
890,000.00
660,000.00
230,000.00
660,000.00
230,000.00
690,000.00
60,000.00
125,000.00
15,000.00
Retained Earninggs
APIC
Cash
14,000.00
60,000.00
19,000.00
19,000.00
250,000.00
14,000.00
19,000.00
217,000.00
Liabilites - Parent
Liabilites - Added Due to Acquisition
Contingent Consideration
Other Acquisition Cost Incurred (NOT YET PAID)
Total Liabilities
65,000.00
35,000.00
15,000.00
19,000.00
134,000.00
Problem 2
JKL Assets: BV
JKL Liab: BV
Net Assets
Obsolete Inventory
Delivery Van
NA: BV b4 FMV adj of Machinery
FMV Adjustment of Machinery
Net Assets: FMV
998,400.00
569,600.00
428,800.00
64,000.00
192,000.00
556,800.00
80,800.00 SQUEEZED
476,000.00
Acquisition Price
Net Assets FMV
Gain on Acquisition
JKL Assets: BV
JKL Liab: BV
Net Assets
Obsolete Inventory
Delivery Van
NA: BV b4 FMV adj of Machinery
FMV Adjustment of Machinery
Net Assets: FMV
Book Value Of Machinery
FMV Adjustment
FMV of Machinery
345,600.00
80,800.00
264,800.00
998,400.00
569,600.00
428,800.00
64,000.00
192,000.00
556,800.00
78,200.00 SQUEEZED
635,000.00
Acquisition Price
Net Assets FMV
Goodwill
516,500.00
78,200.00
594,700.00
Problem 3
Total Acquisition Price:
Stock Issuance
Additional Cash Payment
Contingent Payment
Total Acquisition Price:
Net Assets FMV
Goodwill (Given)
1,715,000.00
375,000.00
148,000.00
2,238,000.00
1,591,000.00 SQUEEZED
647,000.00
530,000.00
148,000.00
28,000.00
706,000.00
Critical: INCURRED
Expenses not CASH Paid
Expenses
Problem 5:
Measurement Period - 1 Year from the Date of Acquisition
Total Acquisition Price:
Cash
Contingent Payment
17,450,000.00
1,015,000.00
18,465,000.00
12,385,000.00
6,080,000.00
547,000.00
72,000.00
- 4,430,000.00
112,000.00
940,000.00
1,859,000.00
319,500.00 SQUEEZED
54,000.00
373,500.00
274,500.00
99,000.00
2.)
Price
NA-FMV
GAIN
Parent (70%)
NCI-NI (30%)
Total
157,500.00
91,500.00
249,000.00
192,150.00
82,350.00
274,500.00
34,650.00
9,150.00 25,500.00
3.)
Price
NA-FMV
GAIN
Parent (80%)
NCI-NI (20%)
Total
205,200.00
54,900.00
260,100.00
219,600.00
54,900.00
274,500.00
14,400.00
14,400.00
2,115,000.00
54,900.00
14,400.00
2,184,300.00
Parent (90%)
NCI-NI (10%)
Total
364,500.00
40,500.00
405,000.00
247,050.00
27,450.00
274,500.00
117,450.00
13,050.00
130,500.00
2,250,000.00
364,500.00
1,885,500.00
297,000.00
130,500.00
2,313,000.00
Problem 7
Stockholder's Equity - Espirirt
2,437,500.00
Goodwill: FINAL
Investment in Espirit
NCI
Identifiable Assets (FV adustments)
Goodwill
Investment in Espirit
NCI
1,584,375.00 65%
853,125.00 35%
436,250.00
468,750.00
2,053,125.00
2,437,500.00
436,250.00
2,873,750.00
Assumption 1: NCI measured at Fair Value (Ngadi la na Assumption ma.apply an Control Premium Adjustment)
Parent (65%)
NCI (35%)
Total
Price
Price
2,053,125.00
1,068,509.62
3,121,634.62
Control Premium
NA-FMV
1,867,937.50
1,005,812.50
2,873,750.00
Implied Price
Goodwill
185,187.50
62,697.12
247,884.62
Divide: % - Acquired
Implied Value
multiply: % - NCI
NCI of 35%
Assumption 2: NCI measured at proportionate relevant share
Parent (65%)
NCI (35%)
Total
Price
2,053,125.00
1,005,812.50
3,058,937.50
NA-FMV
1,867,937.50
1,005,812.50
2,873,750.00
Goodwill
185,187.50
185,187.50
suance Costs are Charged to APIC (issuance of share during acquisition, diri
n APIC an Parent) If exhausted na an APIC, charge the excess to Retained
Earnings..
Acquisition Price
Net Assets FMV
Gain on Acquisition
327,200.00
476,000.00
148,800.00
AP < NA = Gain
Acquisition Price LOWER than Net Assets
Acquired @ FMV results to GAIN ON
ACQUISITION
AP > NA = Goodwill
Acquisition Price
Net Assets FMV
1,037,000.00
635,000.00
402,000.00
ts Acquired @ FMV
-
2,121,000.00 SQUEEZED
530,000.00
1,591,000.00
2,121,000.00
4,890,000.00
375,000.00
647,000.00
7,283,000.00
uisition Price:
ent Payment
uisition Price:
17,450,000.00
284,000.00
17,734,000.00
15,875,000.00
1,859,000.00
Adjustment)
Control Premium
Implied Price
Divide: % - Acquired
Implied Value
multiply: % - NCI
NCI of 35%
2,053,125.00
68,750.00
1,984,375.00 Control Premium
68,750.00
0.65
Control Premium - Deducted ha Purchase Price in Computing for the Total Implied
3,052,884.62
Value of the Acquiree used in computing the NCI
0.35
1,068,509.62
Cost of Investment
2,345,000.00
470,000.00
2,815,000.00
2,246,000.00
569,000.00
*If expressly stated na gamiton it FV hit NCI axa it gamita.. Basta diri hiya LESSER an
NCI of Net Identifiable Assets (Net Asset @ FMV Acquisition Date)
80%
1,796,800.00
20%
449,200.00
470,000.00
56,900.00
2,230,000.00
170,000.00
60,000.00
2,340,000.00
16,000.00
35,250.00
2,391,250.00
478,250.00
20,800.00
2,080.00
496,970.00
170,000.00
35,250.00
205,250.00
20.00%
41,050.00
2,080.00
38,970.00
Alternative Computation:
Net Income Relating to Non-Controlling Interest
Amortization of Excess Relating to NCI
Impairment: Relating to NCI
20%
20%
34,000.00
7,050.00
2,080.00
NCI-NI
38,970.00
Alternative Computation of NCI-Net Assets (NCI-NAS)
Dividends Declared by
Subsidiary:
470,000.00
38,970.00
12,000.00
496,970.00
300,000.00
170,000.00
35,250.00
56,900.00 Remember: Total Impairment Loss it gagamiton ngadi kay C
48,000.00
-
400,350.00
-
38,970.00
361,380.00
If the Year in question is the Next Year after the date of Acqu
pag.comp
IATTP
Income-P
Income-S
Amort.
IL
Div. - S
2,100,000.00
361,380.00
300,000.00
136,000.00
28,200.00
- 54,820.00
- 48,000.00
361,380.00
80,000.00
2,381,380.00
3,000,000.00
700,000.00
2,381,380.00
496,970.00
C-SHE
6,578,350.00
Problem 4
Price
NA (FMV)
Goodwill
Impairment
Parent (80%)
NCI (20%)
Total
2,500,000.00
685,000.00
3,185,000.00
2,308,000.00
577,000.00
2,885,000.00
192,000.00
108,000.00
300,000.00
0.64
0.36
14,400.00
8,100.00
22,500.00
3,250,000.00
485,000.00
35,000.00
2,800,000.00
90,000.00
50,000.00
125,000.00
2,885,000.00
SB Corporation
Net Assets @ Year End: Book Value
Net Income from the Date of Acquisition
Dividend Declared after Date of Acquisition
Net Assets @ Date of Acquisition: Book Value
Inventories: Overstated
Land: Understated
Patent: Understated
Net Assets @ Date of Acquisition: FMV
97,000.00
14,250.00
8,100.00
103,150.00
685,000.00
103,150.00
Dividends (20%)
NCI-NAS @ Year End
Consolidated SHE:
Common Stock
APIC
Consolidated RE:
RE @ Year End
Net Income - Subsidiary
Dividends - Subsidiary
Amortization (80%)
Impairment -Parent
7,000.00
781,150.00
RE End:
3,500,000.00 Net Income -P
750,000.00 Dividends-P
Div. Income-S
RE Beg:
2,460,000.00
388,000.00
28,000.00
57,000.00
14,400.00
CRE
RE Beg:
2,862,600.00 IATTP
Dividends-P
781,150.00 CRE
7,893,750.00
NCI-NAS
Consolidated SHE
2,460,000.00
- 525,000.00
50,000.00
28,000.00
1,957,000.00
1,957,000.00
955,600.00
50,000.00
2,862,600.00
P-Income
S-Income
Amort.
IL
Problem 1
Goodwill
IL
P (80%)
3,240,000.00
3,120,000.00
120,000.00
0.80
96,000.00
NCI-NI
Net Income - NCI
Amortization - NCI
Impairment - NCI
NCI-NI
NCI (20%)
810,000.00
780,000.00
30,000.00
0.20
24,000.00
NI Sub
Amortization
420,000.00
48,000.00 -
120,000.00
NCI-NAS
NCI-NAS beg
NCI-NI
Dividends
NCI-NAS end
105,000.00
12,000.00
24,000.00
69,000.00
IATTP
1,425,000.00
NI - Parent
Total
4,050,000.00
3,900,000.00
150,000.00
NCI-NI
Total
1,425,000.00
105,000.00
12,000.00 -
525,000.00
60,000.00
810,000.00
69,000.00
45,000.00
834,000.00
Impairment Loss
Conso. Net Income
Common Stock
APIC
Consolidated RE
RE Beg
NI-P
Div-P
NI-S
Div-S
Ammort
IL
96,000.00 1,701,000.00
7,800,000.00
1,425,000.00
- 690,000.00
420,000.00
48,000.00
96,000.00
NCI-NAS
Consolidated SHE
Consolidated RE:
RE Beg:
IAATP
Div-P
CRE
24,000.00 - 120,000.00 Issue: Api ba pag.compute hit CNI it Dividend Income from Subsidiary?
Answer: Basta Income from Own Operations it given ha problem, it is assumed th
69,000.00
1,770,000.00
NOT INCLUDE dividends from subsidiary, so no need to deduct it from the in Com
IATTP and CNI.
5,250,000.00
CRE
RE Beginning
7,800,000.00
IATTP
1,701,000.00
Dividends-P
- 690,000.00
CRE
8,811,000.00
8,811,000.00
834,000.00
14,895,000.00
7,800,000.00
1,701,000.00
- 690,000.00
8,811,000.00
NCI
NCI -Given FV
I-NAS)
W/P Adjustments: 4 items para ha SHE adjustments
Excess:
Overstated Inventories
Understated Equipment
Excess of FMV to Cost
2,391,250.00
478,250.00 20%
20,800.00
2,080.00
Ammortization of Excess:
Inventory
Equipment
Ammortization
44,000.00
60,000.00
16,000.00
44,000.00
8,750.00
35,250.00
496,970.00
Goodwill:
Parent Price
NCI Value
TOTAL
2,345,000.00
470,000.00 2,815,000.00
Cost
CI-NI)
NA (FMV)
Goodwill
170,000.00
35,250.00
205,250.00
20.00%
Impairement:
Ratio-P
Ratio-NCI
0.96
0.04
1,796,800.00
548,200.00
449,200.00
20,800.00
2,246,000.00
569,000.00
Parent
54,820.00
NCI
2,080.00
TOTAL
56,900.00
41,050.00
2,080.00
38,970.00
34,000.00
7,050.00
2,080.00
38,970.00
Dividends Declared by
Subsidiary:
48,000.00
12,000.00
60,000.00
Year in question is the Next Year after the date of Acquistion.. An full na Net Income an Subsidiary and irerecognize ha
pag.compute an CNI
mber: Total Impairment Loss it gagamiton ngadi kay Consolidated Net Income na
NCI-NI
Total
34,000.00
7,050.00
300,000.00
170,000.00
35,250.00
2,080.00 38,970.00
56,900.00
48,000.00
400,350.00
Percentage Ownership
48,000.00
28,200.00
54,820.00
496,970.00
6,578,350.00
Ammortization
90,000.00
-
18,750.00
71,250.00
80%
IATTP
20%
NCI-NI
xx
x
x
(x)
(xx)
x
x
(x)
XX
XX
Total
xx
xx
xx
(xx)
(xx)
XX
xx
(xx)
Dividends - Parent
Dividend Income from S
Retained Earning Beg
xx
(xx)
XX
NCI - Dividend
NCI -Net Assets (NCI-NAS)
XX
XX
(XX)
XX
2,685,000.00
525,000.00
- 750,000.00
2,460,000.00
NCI-NI
525,000.00
97,000.00
485,000.00
14,250.00
71,250.00
8,100.00 22,500.00
103,150.00
1,058,750.00
Ammortization
60,000.00
xx
xx
(xx)
XX
Impairment
56900
Total
2815000
2246000
569000 GoodWill
56900
NCI-NA
NCI-NAS Beg
NCI-NI
NCI-Div
NCI-NAS End
470000
38970
-12000
496970
SHE End.
Excess
Ammort
Goodwill
Impairment
NCI-NAS End
810000
780000
30000
0.8
202500
195000
7500
0.2
1012500
975000
37500
2340000
16000
35250
2391250
0.2
478250
20800
-2080
496970
825000
150000
975000
Problem III
Method 1
NCI-Net Assets
Dividends
682,500.00
Amortization
93,750.00
3,937,500.00
25.00%
984,375.00
SHE: BV
Excess:
SHE: FMV
GoodWill
Total FV
Parent (75%)
Price
NA (FMV)
Goodwill
1,763,437.50
1,545,468.75
217,968.75
1,826,250.00
234,375.00
2,060,625.00
290,625.00
2,351,250.00
NCI (25%)
587,812.50
515,156.25
72,656.25
Total
2,351,250.00
2,060,625.00
290,625.00
Method 2
NCI-NAS Beg (Squeezed)
NCI-NI
NCI-Div
NCI - NAS End (Given)
587,812.50
567,187.50
170,625.00
984,375.00
NCI-NI (25%)
Net Income - S
Ammort
IL
NCI - NI
590,625.00
23,437.50
567,187.50
Amortization
23,437.50 Annual
4 years
93,750.00