On January 1, 2020, West Corporation purchased 80% of the common stocks of FastCompany. Separate balance sheets for the companies at acquisition date are as follows:West CorpFast Co.FMVCashP 12,000P 119,000Accounts recei vable72,00013,000Inventory66,00019,00029,000230,000120,000140,000Plant assets, net(remalning life 5 years)Investment In Fast196.000Total assetsP 615,000P 271,000Accounts payableP103,00071,000Capital stock400,000150,000Retained earnings112,00050,000Total equitiesP 615,000P 271,00020. Goodwill (income) to be recorded by West Corp.oints21. Total assets on the consolidated balance sheetnts22. Non-controlling interest in net assets as of January, 2020

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20. Goodwill (income) to be recorded by West Corp. 21. Total assets on the consolidated balance sheet

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

On January 1, 2020, West Corporation purchased 80% of the common stocks of Fast
Company. Separate balance sheets for the companies at acquisition date are as follows:
West Corp
Fast Co.
FMV
Cash
P 12,000
P 119,000
Accounts recei vable
72,000
13,000
Inventory
66,000
19,000
29,000
230,000
120,000
140,000
Plant assets, net
(remalning life 5 years)
Investment In Fast
196.000
Total assets
P 615,000
P 271,000
Accounts payable
P103,000
71,000
Capital stock
400,000
150,000
Retained earnings
112,000
50,000
Total equities
P 615,000
P 271,000
20. Goodwill (income) to be recorded by West Corp.
oints
21. Total assets on the consolidated balance sheet
nts
22. Non-controlling interest in net assets as of January, 2020

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