Use the following information for the next three items:On January 2, 2019, the Statement of Financial Position of Pepper and Steak Company prior to the combination are:Pepper Co.Steak Co.CashInventoriesPPE, netTotal AssetsCurrent LiabilitiesCommon stock, P100 parAdditional Paid in capitalRetained earningsTotal Liabilities and Stockholders' equityThe fair value of Steak Company's equipment is P153,000.Assume the following independent cases:P450,000300,000750,000P1,500,000A. P1,410,000B. P1,419,600P 90,000150,000450,000810,000P1,500,00018. Assuming Pepper Company acquired 70% of the outstanding common stock of Steak Company for P105,000 andNon-controlling interest is measured at fair value of P61,000, how much is the goodwill (gain on acquisition)?C. P23,100A. P(17,000)D. P(23,100)B. P17,000or19. Assuming Pepper Company acquired 80% of the outstanding common stock of Steak Company for P136,800 andnon-controlling interest is measured at non-controlling interest's proportionate share of Steak Company'sidentifiable net assets, how much is the consolidated stockholders' equity on the date of acquisition?C. P1,446,600D. P1,456,200P 15,00030,000105,000P150,000P15,00015,00030,00090,000P150,00020. Assuming Pepper Company acquired 90% of the outstanding common stock of Steak Company for P243,000 andNon-controlling interest is measured at fair value, how much is the total consolidated assets on the date ofacquisition?A. P1,542,000B. P1,785,000C. P1,737,000D. P1,494,000ACQUISITION

There are multiple questions but only the one question is solved due to our guidelines.A gain or…

18. Assuming Pepper Company acquired 70% of the outstanding common stock of Steak Company for P105,000 and Non-controlling interest is measured at fair value of P61,000, how much is the goodwill (gain on acquisition)? A. P(17,000) B. P17,000 C. P23,100 D. P(23,100) 126 800 and

18. Assuming Pepper Company acquired 70% of the outstanding common stock of Steak Company for P105,000 and Non-controlling interest is measured at fair value of P61,000, how much is the goodwill (gain on acquisition)? A. P(17,000) B. P17,000 C. P23,100 D. P(23,100) 126 800 and

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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Question

Use the following information for the next three items:
On January 2, 2019, the Statement of Financial Position of Pepper and Steak Company prior to the combination are:
Pepper Co.
Steak Co.
Cash
Inventories
PPE, net
Total Assets
Current Liabilities
Common stock, P100 par
Additional Paid in capital
Retained earnings
Total Liabilities and Stockholders' equity
The fair value of Steak Company's equipment is P153,000.
Assume the following independent cases:
P450,000
300,000
750,000
P1,500,000
A. P1,410,000
B. P1,419,600
P 90,000
150,000
450,000
810,000
P1,500,000
18. Assuming Pepper Company acquired 70% of the outstanding common stock of Steak Company for P105,000 and
Non-controlling interest is measured at fair value of P61,000, how much is the goodwill (gain on acquisition)?
C. P23,100
A. P(17,000)
D. P(23,100)
B. P17,000
or
19. Assuming Pepper Company acquired 80% of the outstanding common stock of Steak Company for P136,800 and
non-controlling interest is measured at non-controlling interest's proportionate share of Steak Company's
identifiable net assets, how much is the consolidated stockholders' equity on the date of acquisition?
C. P1,446,600
D. P1,456,200
P 15,000
30,000
105,000
P150,000
P15,000
15,000
30,000
90,000
P150,000
20. Assuming Pepper Company acquired 90% of the outstanding common stock of Steak Company for P243,000 and
Non-controlling interest is measured at fair value, how much is the total consolidated assets on the date of
acquisition?
A. P1,542,000
B. P1,785,000
C. P1,737,000
D. P1,494,000
ACQUISITION

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