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    Inv in Asso

    Uploaded by

    Kriza Cabillo

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Inv in Asso

    Uploaded by

    Kriza Cabillo
    3 views8 pages

    Original Title

    Inv-in-Asso

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    3 views8 pages

    Inv in Asso

    Uploaded by

    Kriza Cabillo

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 8

    Formula

    Acquisition Cost 1,200,000.00


    Less: Book Value of Net Assets (4,700,000*20%) 940,000.00
    Acquired
    Excess of Cost over Carrying
    260,000.00
    amount
    Undervaluation of depreciable (5,000,000 - 4,700,000) * 20% 60,000.00
    Asset
    Goodwill 200,000.00

    Investment in Associate 1,200,000.00


    Cash 1,200,000.00
    To record the acquisition

    Investment Income 10,000.00


    Investment in Associate 10,000.00
    (60,000/6 years)
    To record the undervaluation of depreciable asset

    Investment in Associate 600,000.00


    Investment Income 600,000.00
    (3,000,000*20%)
    To record the share in income

    Cash 100,000.00
    Investment in Associate 100,000.00
    (500,000*20%)
    To record the dividends received
    Investment in Associate
    Beg Balance 1,200,000.00 100,000.00 Dividends Received
    Share in income 600,000.00 10,000.00 Undervaluation of Asset

    1,690,000.00
    Formula
    Acquisition Cost 68,000,000.00
    Less: Book Value of Net Assets (192,000,000*25%) 48,000,000.00
    Acquired
    Excess of Cost over Carrying
    20,000,000.00
    amount
    Undervaluation of depreciable 32,000,000 * 25% 8,000,000.00
    Asset
    Goodwill 12,000,000.00

    Investment in Associate 68,000,000.00


    Cash 68,000,000.00
    To record the acquisition

    Investment Income 1,000,000.00


    Investment in Associate 1,000,000.00
    (8,000,000/8 years)
    To record the undervaluation of depreciable asset

    Investment in Associate 10,000,000.00 Beg Balance


    Investment Income 10,000,000.00 Share in income
    (40,000,000*25%)
    To record the share in income

    Cash 6,000,000.00
    Investment in Associate 6,000,000.00
    Undervaluation of
    (4,000,000*1.5) Asset
    To record the dividends received
    Investment in Associate
    68,000,000.00 6,000,000.00 Dividends Received
    10,000,000.00 1,000,000.00 Undervaluation of Asset

    71,000,000.00

    Net Investment Income

    1,000,000.00 10,000,000.00 Share in income

    9,000,000.00
    Formula
    Acquisition Cost 2,000,000.00
    Less: Book Value of Net (6,000,000*25%) 1,500,000.00
    Assets Acquired
    Excess of Cost over
    500,000.00
    Carrying amount
    (1,000,000-800,000) *
    Undervaluation of Asset 25% 50,000.00
    (4,500,000-4,000,000) *
    25% 125,000.00

    (700,000-200,000) * 25% 125,000.00


    Goodwill 200,000.00

    2017
    Investment in Associate 2,000,000.00
    Cash 2,000,000.00
    To record the acquisition

    Investment Income 50,000.00 2017


    Investment in Associate 50,000.00
    To record the undervaluation of inventory

    Investment Income 25,000.00


    Investment in Associate 25,000.00 2018
    (125,000/5)
    To record the undervaluation of depreciable asset

    Investment in Associate 350,000.00


    Investment Income 350,000.00
    (1,400,000*25%)
    To record the share in income

    Cash 100,000.00
    Investment in Associate 100,000.00
    (25,000*4)
    To record the dividends received

    2018

    Investment Income 125,000.00


    Investment in Associate 125,000.00
    To record the undervaluation of land

    Investment Income 25,000.00


    Investment in Associate 25,000.00
    (125,000/5)
    To record the undervaluation of depreciable asset

    Investment in Associate 400,000.00


    Investment Income 400,000.00
    (1,600,000*25%)
    To record the share in income

    Cash 125,000.00
    Investment in Associate 125,000.00
    (25,000*5)
    To record the dividends received
    Investment in Associate
    Beg Balance 2,000,000.00 100,000.00 Dividends Received
    Share in income 350,000.00 50,000.00 Undervaluation of Inventory
    25,000.00 Undervaluation of Depreciable Asset

    2,175,000.00 125,000.00 Dividends Received


    Share in income 400,000.00 125,000.00 Undervaluation of Land
    25,000.00 Undervaluation of Depreciable Asset
    2,300,000.00

    Net Investment Income 2017


    Undervaluation of Inventory 50,000.00 350,000.00 Share in income

    Undervaluation of Depreciable Asset 25,000.00

    275,000.00

    Net Investment Income 2018


    Undervaluation of Inventory 125,000.00 400,000.00 Share in income

    Undervaluation of Depreciable Asset 25,000.00

    250,000.00
    tion of Inventory
    tion of Depreciable Asset

    tion of Land
    tion of Depreciable Asset

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