3rd Set of Questions for BusCom 9Mar2023

Warm-up Question: The international Women's Day was held on March 8, 2023. What color was used to represent advocacy for the said event?

• Rebecca Purple

• Russian Violet

• French Violet

• Spanish Purple

The excess of the total consideration transferred over the fair value of the _______ net assets acquired will result in ________.

• total, goodwill/loss

• identifiable, goodwill/gain

• sum of, goodwill/loss

• total, goodwill/gain

When accounting for a business combination a contingent liability is recognized if:

• All identifiable assets and liabilities are recorded at fair value at the date of acquisition.

• All identifiable assets and liabilities are recorded at book value at the date of acquisition.

• Goodwill is recorded if the fair value of the net assets acquired exceeds the book value of the net assets acquired.

• All of the above is correct.

On January 1, 2023, Parent Corp. exchanged P430,000 fair-value consideration for 70% of the outstanding stock of Subsidiary Corp. The fair value of the NCI as of this date is P165,000. The book value and fair value of Subsidiary's identifiable net assets is P600,000. For the rest of Year 2023, Subsidiary generated revenues of P600,000 and expenses of P360,000 without paying dividends. What amount should be reported as non-controlling interest using full goodwill method?

• P222,000

• P294,000

• P302,000

• P237,000

On April 1, 2023, Parent Corp. exchanged P430,000 fair-value consideration for 70% of the outstanding stock of Subsidiary Corp. The fair value of the NCI as of this date is P165,000. The fair value of Subsidiary's identifiable net assets is P500,000. For the rest of Year 2023, Subsidiary generated revenues of P600,000 and expenses of P360,000 without paying dividends. What amount should be reported as non-controlling interest using full goodwill method?

• P219,000

• P237,000

• P273,000

• P250,500

On July 1, 2023, Parent Corp. exchanged P430,000 fair-value consideration for 70% of the outstanding stock of Subsidiary Corp. The fair value of the NCI as of this date is P165,000. The fair value of Subsidiary's identifiable net assets is P500,000. For the rest of Year 2023, Subsidiary generated revenues of P600,000 and expenses of P360,000 without paying dividends. What amount should be reported as non-controlling interest using full goodwill method?

• P201,000

• P219,000

• P222,000

• P237,000

Take a mental break by answering this brain teaser. How many cubes are there in the image?

• 28

• 35

• 31

• 33

Not relaxed yet? Here's another brain teaser to kill your tension. Who is the killer of the lady in the restroom?

• 1

• 2

• 3

• 4

• 5

At the beginning of 2023, Parent Co. acquired an 80% interest in Subsidiary Co. when acquiree's equity comprised of share capital P100,000 and retained earnings P500,000. Subsidiary's year-end statement of financial position shows share capital of P100,000, a revaluation reserve of P400,000 and retained earnings of P1,400,000. Subsidiary paid dividends amounting to P450,000. How much was earned by Subsidiary during the year?

• P900,000

• P1,300,000

• P1,350,000

• P1,750,000

At the beginning of 2023, Parent Co. acquired an 80% interest in Subsidiary Co. when acquiree's equity comprised of share capital P100,000 and retained earnings P500,000. Subsidiary's year-end statement of financial position shows share capital of P100,000, a revaluation reserve of P400,000 and retained earnings of P1,400,000. Subsidiary paid dividends amounting to P450,000. How much is the share of the non-controlling Interest in the net income?

• 350,000

• 270,000

• 260,000

• 180,000