40 percent of SS had an acquisition date fair value of P65,000. On January 1, S5 possessed equipment (5-year life) that was undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at PS0,000. Theses formulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determined that the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: BB Revenues (from sales and dividends) Cost of goods sold Expenses Net Income P (300, 000) P (200, 000) 80, 000 10, 000 P (140, 000) P (110, 000) 140, 000 20, 000 Retained earnings 1/1 Net Income Dividends paid Retained earnings 12/31 P (300, 000) P (150, 000) (140, 000) -0- P (440, 000) P(250, 000) (110, 000) 10,000 Cash and Receivables P90, 000 P 210, 000 150, 000 260, 000 440, 000 P1,060, 000 Inventory 110, 000 Investment in SS -0- 300, 000 P500, 000 Equipment (net) Total Assets Liabilities P (420, 000) P (150, 000) (200, 000) (440, 000) P (1,060,000) (100, 000) (250, 000) P (500, 000) Common stock Retained earnings 12/31 Total Liabilities and Equities Determine the consolidated assets as of December 31.
40 percent of SS had an acquisition date fair value of P65,000. On January 1, S5 possessed equipment (5-year life) that was undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at PS0,000. Theses formulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determined that the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of December 31, the financial statements appeared as follows: BB Revenues (from sales and dividends) Cost of goods sold Expenses Net Income P (300, 000) P (200, 000) 80, 000 10, 000 P (140, 000) P (110, 000) 140, 000 20, 000 Retained earnings 1/1 Net Income Dividends paid Retained earnings 12/31 P (300, 000) P (150, 000) (140, 000) -0- P (440, 000) P(250, 000) (110, 000) 10,000 Cash and Receivables P90, 000 P 210, 000 150, 000 260, 000 440, 000 P1,060, 000 Inventory 110, 000 Investment in SS -0- 300, 000 P500, 000 Equipment (net) Total Assets Liabilities P (420, 000) P (150, 000) (200, 000) (440, 000) P (1,060,000) (100, 000) (250, 000) P (500, 000) Common stock Retained earnings 12/31 Total Liabilities and Equities Determine the consolidated assets as of December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash consideration. The remaining
40 percent of SS had an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5-year life) that was
undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at PS0,000. Theses
formulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determined
that the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of
December 31, the financial statements appeared as follows:
BB
Revenues (fram sales and dividends)
Cost of goods sold
Еxpenses
P (300, 000) P (200, 000)
140, 000
20, 000
P (140, 000) P(110, 000)
80, 000
10, 000
Net Income
P (300, 000) P(150, 000)
(140, 000)
-0-
P (440, 000) P (250, 000)
Retained earnings 1/1
Net Income
(110, 000)
Dividends paid
Retained earnings 12/31
10,000
P 210, 000
150, 000
260, 000
440, 000
P1,060, 000
Cash and Receivables
P90, 000
110, 000
Inventory
Investment in SS
-0-
300, 000
P500, 000
Equipment (net)
Total Assets
Liabilities
Common stock
Retained earnings 12/31
Total Liabilities and Equities
(200, 000)
(440, 000)
P (1,060,000)
P (420, 000) P(150, 000)
(100, 000)
(250, 000)
P (500, 000)
Determine the consolidated assets as of December 31.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F26068d79-eaaa-4615-aeee-054ad4d591ae%2F13e50fab-76d0-4222-b3f8-977ac1c2ff74%2F9hym3jg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, BB Acquired 60 percent of the outstanding voting stock of SS for P260,000 cash consideration. The remaining
40 percent of SS had an acquisition date fair value of P65,000. On January 1, SS possessed equipment (5-year life) that was
undervalued on its books P25,000. SS also had developed several secret formulas that BB assessed at PS0,000. Theses
formulas, although not recorded on SS's financial records, were estimated to have a 20-year future life. BB also determined
that the inventory of SS is overvalued by P10,000. 80% of these inventories remain unsold by the end of the year. As of
December 31, the financial statements appeared as follows:
BB
Revenues (fram sales and dividends)
Cost of goods sold
Еxpenses
P (300, 000) P (200, 000)
140, 000
20, 000
P (140, 000) P(110, 000)
80, 000
10, 000
Net Income
P (300, 000) P(150, 000)
(140, 000)
-0-
P (440, 000) P (250, 000)
Retained earnings 1/1
Net Income
(110, 000)
Dividends paid
Retained earnings 12/31
10,000
P 210, 000
150, 000
260, 000
440, 000
P1,060, 000
Cash and Receivables
P90, 000
110, 000
Inventory
Investment in SS
-0-
300, 000
P500, 000
Equipment (net)
Total Assets
Liabilities
Common stock
Retained earnings 12/31
Total Liabilities and Equities
(200, 000)
(440, 000)
P (1,060,000)
P (420, 000) P(150, 000)
(100, 000)
(250, 000)
P (500, 000)
Determine the consolidated assets as of December 31.
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