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25. How much should be the underlying equity of Honda in the net assets of Hyundai?

25. How much should be the underlying equity of Honda in the net assets of Hyundai?

FINANCIAL ACCOUNTING
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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Honda Company acquired 70% of the outstanding stock of Hyundai Co. on January 1, 2022. The consolidated balance sheet prepared immediately after the business combination contained the following: Current Assets - 146,000 Fixed Assets - Net - 360,000 Goodwill - 18,100 Liabilities - 28,000 Capital Stock - 350,000 Retained Earnings - 111,000 NCI - 35,100 On acquisition date, Hyundai's Fixed assets were under depreciated by 10,000. The balance of the excess payment was ascribed to goodwill. 25. How much should be the underlying equity of Honda in the net assets of Hyundai?
Transcribed Image Text:Honda Company acquired 70% of the outstanding stock of Hyundai Co. on January 1, 2022. The consolidated balance sheet prepared immediately after the business combination contained the following: Current Assets - 146,000 Fixed Assets - Net - 360,000 Goodwill - 18,100 Liabilities - 28,000 Capital Stock - 350,000 Retained Earnings - 111,000 NCI - 35,100 On acquisition date, Hyundai's Fixed assets were under depreciated by 10,000. The balance of the excess payment was ascribed to goodwill. 25. How much should be the underlying equity of Honda in the net assets of Hyundai?
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