How much is the goodwill recognized by julius

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Reference no: EM133185527

Question 1 - On January 1, 2022, JPIA Corporation has a subsidiary in Hong Kong. The subsidiary's December 31, 2022 Trial Balance, in Hong Kong Dollar (HK$), is as follows:

 

DEBIT

CREDIT

Cash

18,000


Accounts receivable (net)

30,000


Inventory

37,500


Plant & equipment

150,000


Accumulated Depreciation


15,000

Accounts payable


18,000

Bonds payable


75,000

Ordinary Share


90,000

Sales


225,000

Cost of Sales

105,000


Depreciation expenses

15,000


Operating expenses

45,000


Dividends paid

22,500


 

423,000

423,000

Additional Information: Purchases of inventory goods were made evenly during the year. The dividends were declared and paid on November 1. The ordinary shares were issued on January 1, 2022. The functional currency of the subsidiary is the Hong Kong dollar. Exchange rates were as follows:

 

HK$

PHP

January 1

1.00

5.30

March 1

1.00

5.40

November 1

1.00

5.50

December 31

1.00

5.00

Average rate - 2022

1.00

5.40

Cumulative translation adjustment loss (debit) is?

Question 2 - On January 1, 2020, Julius Company acquired 40% interest in Ella Company for P4,800,000. Julius already had 25% interest which had been acquired for P1,600,000. The fair value of the identifiable net assets of Ella Co. was P8,800,000. How much is the goodwill recognized by Julius as a result of business combination?

Question 3 - On January 07, 2022, Ian Co., acquired 35% interest in Mark Co., for P4,300,000. Ian already held a 20% interest which had been acquired for P1,600,000 which was valued at P1,800,000 at January 07, 2022. The fair value of the identifiable net assets of Mark Co., was P8,400,000. The fair value of NCI is P4,050,000. How much goodwill is to be recorded on the separate books of Ian Co.?

Reference no: EM133185527

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