AB CO paid CU3,000,000,000 for 80% ownership of XY CO on January 1 19X8. The book value and fair value of XY CO's net assets are as follows: Current assets Clean Equipment Fixed Assets-Net Liabilities Net Assets BOOK VALUE CU1.000.000.000 2.000.000.000 1.000.000.000 (1.500.000.000) Rp 2.500.000.000 FAIR VALUE CU1.500.000.000 3.000.000.000 Rp 1.000.000.000 (1.500.000.000) Rp 4.000.000.000 Requested: Prepare a list for allocating the cost differential / Book value to net assets XY CO
AB CO paid CU3,000,000,000 for 80% ownership of XY CO on January 1 19X8. The book value and fair value of XY CO's net assets are as follows: Current assets Clean Equipment Fixed Assets-Net Liabilities Net Assets BOOK VALUE CU1.000.000.000 2.000.000.000 1.000.000.000 (1.500.000.000) Rp 2.500.000.000 FAIR VALUE CU1.500.000.000 3.000.000.000 Rp 1.000.000.000 (1.500.000.000) Rp 4.000.000.000 Requested: Prepare a list for allocating the cost differential / Book value to net assets XY CO
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
AB CO paid CU3,000,000,000 for 80% ownership of XY CO on January 1 19X8. The book value and fair value of XY CO's net assets are as follows:
Current assets |
BOOK VALUE CU1.000.000.000 |
FAIR VALUE CU1.500.000.000 |
Requested:
Prepare a list for allocating the cost differential / Book value to net assets XY CO
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education