financial accounting 1 - chapter 22

Upload: carol-ferreros-pangan

Post on 28-Feb-2018

219 views

Category:

Documents


1 download

TRANSCRIPT

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    1/17

    CHAPTER16

    Problem 16-1 Problem 16-2 Problem 16-3

    .

    A

    .

    c

    . D

    2

    c

    2

    D

    2

    D

    3. c 3. B 3. c

    4. A 4. A 4. A

    5. D 5. c 5. A

    6. A 6. c

    7. c 7. c

    8. A

    8

    B

    9. D 9.

    c

    10 . B 10 . D

    Problem 16-5

    Equi

    ty met

    h

    od

    .

    Investment in associate

    Cash

    Acquisiti on cost

    Net assets acquired (20 x 8,000,000)

    Goo

    dwill

    2

    Investment

    in

    associate

    Investmen t income (20 x 1,500,000)

    3. M

    emo

    - Received 2,000 shares as 10 stock dividend on

    20,000 ori

    gi

    nal shares. Shares now held, 22,000.

    4. Investment

    loss

    Investment in associate 20 x 300,000)

    5. Cash (20

    x

    500,000)

    Investment in associate

    6. Cash

    (5,500 x 200)

    Investment

    in

    associate

    G

    ai

    n

    on

    sale

    of

    in

    ve

    stm ent

    Sale price

    Less: Cost of in

    ves

    tment sold (5,500/22,0

    00

    x 2,540,

    00

    0)

    Gain on sale

    7. Investment in associ ate

    Gain from remeasurement to fair value

    Fair val

    ue

    ( 16,5

    00

    x 180)

    Carrying amount

    of

    retained inves tment (2,540,000 - 635,000)

    Gain

    fro

    m rem easurem

    ent

    Investment

    in

    equity securities

    Investment in associate

    160

    Problem 16-4

    . B

    2

    D

    3. B

    4. A

    5. A

    2,400,000

    300,000

    60 ,000

    100,0

    00

    1,100,000

    1

    ,0

    65,000

    2,970,

    00

    0

    2,400,000

    2,400,000

    1.600.000

    800.000

    300,000

    60 ,000

    1

    00

    ,

    00

    0

    635 ,000

    465,000

    1,100,000

    635.000

    465,000

    1,065,000

    2,970,

    00

    0

    1.905.000

    1.065.000

    2,970,000

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    2/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    3/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    4/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    5/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    6/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    7/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    8/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    9/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    10/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    11/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    12/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    13/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    14/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    15/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    16/17

  • 7/25/2019 Financial Accounting 1 - Chapter 22

    17/17