ABC-DEF ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and immediatelyprepares a consolidated balance sheet. ABC also pays P12,000 in accounting and legal fees to accomplish thepurchase. The separate balance sheets of the two companies immediately prepared before the consolidation withacquiree's fair value were presented as follows:ABC, Carrying value350,00075,000100,000DEF, Carrying value50,00050,00060,000DEF, Fair value50,00050,00075,000CashAccounts ReceivableInventoryLandBuilding and Equipment, netAccounts PayableBonds PayableCommon stock, P10 parShare PremiumRetained Earnings175,000400,000100,000200,000500,00050,00040,000300,000100,000100,000200,000100,000290,000100,000135,00020,000250,00080,000Compute for the Consolidated Total Asset.

In the consolidated financial statement, the charges paid for the business acquisition will be…

ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and immediately prepares a consolidated balance sheet. ABC also pays P12,000 in accounting and legal fees to accomplish the purchase. The separate balance sheets of the two companies immediately prepared before the consolidation with acquiree's fair value were presented as follows: ABC, Carrying value 350,000 75,000 100,000 175,000 400,000 100,000 200,000 500,000 DEF, Carrying value 50,000 50,000 60,000 40,000 300,000 100,000 100,000 200,000 DEF, Fair value 50,000 50,000 75,000 Cash Accounts Receivable Inventory Land Building and Equipment, net Accounts Payable Bonds Payable Common stock, P10 par Share Premium Retained Earnings 100,000 290,000 100,000 135,000 50,000 20,000 250,000 80,000 Compute for the Consolidated Total Asset.

ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and immediately prepares a consolidated balance sheet. ABC also pays P12,000 in accounting and legal fees to accomplish the purchase. The separate balance sheets of the two companies immediately prepared before the consolidation with acquiree's fair value were presented as follows: ABC, Carrying value 350,000 75,000 100,000 175,000 400,000 100,000 200,000 500,000 DEF, Carrying value 50,000 50,000 60,000 40,000 300,000 100,000 100,000 200,000 DEF, Fair value 50,000 50,000 75,000 Cash Accounts Receivable Inventory Land Building and Equipment, net Accounts Payable Bonds Payable Common stock, P10 par Share Premium Retained Earnings 100,000 290,000 100,000 135,000 50,000 20,000 250,000 80,000 Compute for the Consolidated Total Asset.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 -          Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…
On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp.’s common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: On the date of the business combination, the book values of Vaxx Corp’s net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx Corporation Cash 60,000 20,000 Accounts receivable 80,000 30,000 Inventory 90,000 40,000 Land 100,000 40,000 Buildings and equipment 200,000 150,000 Less: Accumulated depreciation (80,000) (50,000) Investment in Vaxx Corp. stock 160,000 -          Total Assets 610,000 230,000 Accounts payable 110,000 30,000 Bonds…