AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed Statement of Financial Position before the combination show: AAA Inc. ВBB Coгp. Cash 88,000 88,000 Accounts Receivable, net 500,000 420,000 1,700,000 4,654,000 1,119,600 1,040,000 260,000 171,600 Inventory Property Plant and Equipment Patent Accounts Payable 1,000,000
AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed Statement of Financial Position before the combination show: AAA Inc. ВBB Coгp. Cash 88,000 88,000 Accounts Receivable, net 500,000 420,000 1,700,000 4,654,000 1,119,600 1,040,000 260,000 171,600 Inventory Property Plant and Equipment Patent Accounts Payable 1,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
What is the consolidated asset after acquisition
Transcribed Image Text:AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed
Statement of Financial Position before the combination show:
ВBB Cогp.
88,000
420,000
1,119,600
1,040,000
260,000
171,600
AAA Inc.
Cash
Accounts Receivable, net
Inventory
Property Plant and Equipment
88,000
500,000
1,700,000
4,654,000
Patent
Accounts Payable
Mortgage Payable
Capital Stock, par P100
Share Premium
Retained Earnings
1,000,000
1,704,000
2,600,000
390,000
1,248,000
1,300,000
390,000
1,066,000
As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant
and equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA purchases BBB's net asset for P4,000,000.
Compute for the consolidated asset after acquisition.
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