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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
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
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

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
S Corporations
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.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education