Use the following information for questions 1 to 4:On December 31, 2014, Add-On Company acquired 100 percent of Venus Corporation's common stockfor P300,000. Balance sheet information Venus just prior to the acquisition is given here:Cash and receivables.P 35,000Inventory..Land..75,000100,000Buildings and equipment (net)..220.000Total assets.420,000Liabilities and Stockholder's EquityAccounts payable.Bonds payable.Common stock (P1 par).P 65,000150,000100,000Retained earnings..115,000Total liabilities and equity..430,000At the date of the business combination. Venus's net assets and liabilities approximated fair valueexcept for inventory, which had a fair value of P60,000, land which had a fair value of P125,000, andbuildings and equipment (net), which had a fair value of P250,000.1. What amount of inventory will be included in the consolidated balance sheet immediately followingthe acquisition?а. Р15,000C.P60,000b. P45,0002. What amount of goodwill will be included in the consolidated balance sheet immediately followingthe acquisition?d.P75,000a. P15,000b. Р30,0003. What amount of differential will be reflected in a consolidation work paper to prepare ac.P45,000d.P85,000consolidated balance sheet immediately after the business combination?a. P 0b. P15,0004. What amount will be included as investment in Venus Corporation in the consolidated balance sheetc. P45,000P85,000d.immediately following the acquisition?а. Р 0b. P255,000P300,000P395,000C.d.

Inventory management is the process of obtaining and storing raw materials or materials in the…

1. What amount of inventory will be included in the consolidated balance sheet immediately following the acquisition? a. P15,000 b. P45,000 2. What amount of goodwill will be included in the consolidated balance sheet immediately following the acquisition? c. P60,000 d. P75,000 c. d. P45,000 P85,000 a. P15,000 b. Р30,000 3. What amount of differential will be reflected in a consolidation work paper to prepare a consolidated balance sheet immediately after the business combination? a. P 0 b. P15,000 4. What amount will be included as investment in Venus Corporation in the consolidated balance sheet immediately following the acquisition? a. P 0 c. P45,000 d. P85,000 C. P300,000 P255 000 P395 000

1. What amount of inventory will be included in the consolidated balance sheet immediately following the acquisition? a. P15,000 b. P45,000 2. What amount of goodwill will be included in the consolidated balance sheet immediately following the acquisition? c. P60,000 d. P75,000 c. d. P45,000 P85,000 a. P15,000 b. Р30,000 3. What amount of differential will be reflected in a consolidation work paper to prepare a consolidated balance sheet immediately after the business combination? a. P 0 b. P15,000 4. What amount will be included as investment in Venus Corporation in the consolidated balance sheet immediately following the acquisition? a. P 0 c. P45,000 d. P85,000 C. P300,000 P255 000 P395 000

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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