ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and immediatelyprepares a consolidated balance sheet. ABC also pays P12,000 in accounting and legal fees to accomplish thepurchase. The separate balance sheets of the two companies immediately prepared before the consolidation withacquiree's fair value were presented as follows:ABC, Carrying value350,000DEF, Carrying value50,000DEF, Fair value50,00050,00075,000CashAccounts Receivable75,000100,000175,000400,000100,000200,000500,00050,000250,00050,00060,000InventoryLandBuilding and Equipment, netAccounts PayableBonds PayableCommon stock, P10 parShare PremiumRetained Earnings40,000300,000100,000100,000200,00020,00080,000100,000290,000100,000135,000Compute for the Consolidated Total Asset.

Assets are the tangible or intangible items owned by the firm or individual. It is calculated by…

ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and immediately prepares a consolidated balance sheet. ABC also pays P12,000 in accounting and legal fees to accomplish the purchase. The separate balance sheets of the two companies immediately prepared before the consolidation with acquiree's fair value were presented as follows: ABC, Carrying value Cash Accounts Receivable Inventory Land DEF, Carrying value 50,000 50,000 60,000 DEF, Fair value 50,000 50,000 350,000 75,000 100,000 175,000 400,000 100,000 200,000 500,000 50,000 250,000 40,000 300,000 100,000 100,000 200,000 20,000 75,000 100,000 290,000 100,000 135,000 Building and Equipment, net Accounts Payable Bonds Payable Common stock, P10 par Share Premium Retained Earnings 80,000

ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and immediately prepares a consolidated balance sheet. ABC also pays P12,000 in accounting and legal fees to accomplish the purchase. The separate balance sheets of the two companies immediately prepared before the consolidation with acquiree's fair value were presented as follows: ABC, Carrying value Cash Accounts Receivable Inventory Land DEF, Carrying value 50,000 50,000 60,000 DEF, Fair value 50,000 50,000 350,000 75,000 100,000 175,000 400,000 100,000 200,000 500,000 50,000 250,000 40,000 300,000 100,000 100,000 200,000 20,000 75,000 100,000 290,000 100,000 135,000 Building and Equipment, net Accounts Payable Bonds Payable Common stock, P10 par Share Premium Retained Earnings 80,000

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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compute for the consolidate total asset
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