1. What is the consolidated assets as of date of acquisition?2. What is the consolidated equity as of date of acquisition? acquisition.PROBLEM 2- 3Condensed Statements of Financial Position of Love Corp. and You Corp.as of December 31, 2021 are as follows:LoveYouCurrent assetsP175,000725,000P65,000425,000Noncurrent assetsLiabilitiesOrdinary shares, P20 parShare premiumRetained earnings65,000550,00035,000250,00035,000300,00025,000130,000On January 1, 2022, Love Corp. issued 35,000 shares with a market valueof P25/share for the assets and liabilities of You Corp.00100 CHAPTER 2: CONSOLIDATION-DATEOF ACQUISITIONThe book value reflects the fair value of the assets and liabilities exceptthat the noncurrent assets of You have fair values of P630,000, and thenoncurrent assets of Love are overstated by P30,000. Contingentconsideration, which is determinable, is equal to P15,000. Love also paidfor the stock issuance costs worth P34,000 and other acquisition costsamounting to P10,000.Required1. Consolidated assets as of date of acquisition.2. Consolidated equity as of date of acquisition.PROBLEM 2-4On January 2, 2022, the Statement of Financial Position of Love andHope Company prior to combination are:

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. What is the consolidated assets as of date of acquisition? 2. What is the consolidated equity as of date of acquisition?

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

1. What is the consolidated assets as of date of acquisition?

2. What is the consolidated equity as of date of acquisition?

acquisition.
PROBLEM 2- 3
Condensed Statements of Financial Position of Love Corp. and You Corp.
as of December 31, 2021 are as follows:
Love
You
Current assets
P175,000
725,000
P65,000
425,000
Noncurrent assets
Liabilities
Ordinary shares, P20 par
Share premium
Retained earnings
65,000
550,000
35,000
250,000
35,000
300,000
25,000
130,000
On January 1, 2022, Love Corp. issued 35,000 shares with a market value
of P25/share for the assets and liabilities of You Corp.
00
100

CHAPTER 2: CONSOLIDATION-DATE
OF ACQUISITION
The book value reflects the fair value of the assets and liabilities except
that the noncurrent assets of You have fair values of P630,000, and the
noncurrent assets of Love are overstated by P30,000. Contingent
consideration, which is determinable, is equal to P15,000. Love also paid
for the stock issuance costs worth P34,000 and other acquisition costs
amounting to P10,000.
Required
1. Consolidated assets as of date of acquisition.
2. Consolidated equity as of date of acquisition.
PROBLEM 2-4
On January 2, 2022, the Statement of Financial Position of Love and
Hope Company prior to combination are:

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