Advanced Accounting
Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 1, Problem 1.2.2C
To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

To calculate: The total price paid for the purpose of acquisition.

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10 On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000.  At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value.  The table below shows the profits and losses made by Marcus during 2015 to 2019:    Year  Profit (Loss)  2015  200,000  2016  2,000,000  2017  2,500,000  2018  160,000  2019  300,000       How much will the Investment in Associate account be debited/credited in 2018?  Group of answer choices  No entry  P40,000 Dr.  P1,035,000 Cr.  P1,060,000 Cr.
Current Attempt in Progress These are two independent situations: 1. Pharoah Cosmetics acquired 13% of the 278,500 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2022. On June 30, Elite declared and paid a $69,800 dividend. On December 31, Elite reported net income of $263,120 for the year. At December 31, the market price of Elite Fashion was $15 per share. 2. Sheffield Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 30,500 outstanding shares of common stock at a total cost of $11 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of $32,100. On December 31, Kasey reported a net income of $120,900 for the year. Prepare all the necessary journal entries for 2022 for Sheffield Inc. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No…
Situation 1 Riverbed Cosmetics acquired 10% of the 215,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Martinez declared and paid $74,000 cash dividend to all stockholders. On December 31, Martinez reported net income of $127,600 for the year. At December 31, the market price of Martinez Fashion was $13 per share. Situation 2 Marin, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles's 31,300 outstanding shares of common stock at a total cost of $9 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $36,600 to all stockholders. On December 31, Seles reported a net income of $80,100 for the year. Prepare all necessary journal entries in 2020 for both situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
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