ABC Company and XYZ Company reported the following condensed Statements of Financial Position on January 1, year 1. АВС Company 70,000 90,000 160,000 30,000 50,000 80,000 160,000 XYZ Company 20,000 Current Assets 40,000 60,000 10,000 Noncurrent Assets Total Assets Current Liabilities Long-term debt Stockholders' Equity Total Liabilities and stockholders' equity 50,000 60,000 On January 2, year 1, ABC borrowed P60,000 and used the proceeds to purchase 90% of the outstanding common shares of XYZ. This debt is payable in ten equal annual principal payments, plus interest, beginning December 30, year 1. The excess cost of the investment over XYZ's book value of acquired net assets should be allocated 60% to inventory and 40% to goodwill. On January 1, Year 1, the fair value of ABC shares held by noncontrolling parties was 10,000. On ABC's January 22, year 1 consolidated Statement of Financial Position, compute for the following required amounts?
ABC Company and XYZ Company reported the following condensed Statements of Financial Position on January 1, year 1. АВС Company 70,000 90,000 160,000 30,000 50,000 80,000 160,000 XYZ Company 20,000 Current Assets 40,000 60,000 10,000 Noncurrent Assets Total Assets Current Liabilities Long-term debt Stockholders' Equity Total Liabilities and stockholders' equity 50,000 60,000 On January 2, year 1, ABC borrowed P60,000 and used the proceeds to purchase 90% of the outstanding common shares of XYZ. This debt is payable in ten equal annual principal payments, plus interest, beginning December 30, year 1. The excess cost of the investment over XYZ's book value of acquired net assets should be allocated 60% to inventory and 40% to goodwill. On January 1, Year 1, the fair value of ABC shares held by noncontrolling parties was 10,000. On ABC's January 22, year 1 consolidated Statement of Financial Position, compute for the following required amounts?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 49E
Related questions
Question
Please compute for the Current Liabilities, Non-current Liabilities, and
![ABC Company and XYZ Company reported the following condensed Statements of Financial Position on
January 1, year 1.
АВС Company
XYZ Company
20,000
40,000
60,000
10,000
Current Assets
70,000
Noncurrent Assets
90,000
160.000
30,000
Total Assets
Current Liabilities
Long-term debt
Stockholders' Equity
Total Liabilities and stockholders' equity
50,000
80,000
160,000
50,000
60,000
On January 2, year 1, ABC borrowed P60,000 and used the proceeds to purchase 90% of the outstanding
common shares of XYZ. This debt is payable in ten equal annual principal payments, plus interest,
beginning December 30, year 1. The excess cost of the investment over XYZ's book value of acquired net
assets should be allocated 60% to inventory and 40% to goodwill. On January 1, Year 1, the fair value of
ABC shares held by noncantrolling parties was 10,000.
On ABC's January 22, year 1 consolidated Statement of Financial Position, compute for the following
required amounts?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a682ed1-9c83-4d19-bc3a-8ed5ff7115ef%2F3ef8becd-340f-4246-aafd-955c606d8e0b%2Fjw2ul4_processed.png&w=3840&q=75)
Transcribed Image Text:ABC Company and XYZ Company reported the following condensed Statements of Financial Position on
January 1, year 1.
АВС Company
XYZ Company
20,000
40,000
60,000
10,000
Current Assets
70,000
Noncurrent Assets
90,000
160.000
30,000
Total Assets
Current Liabilities
Long-term debt
Stockholders' Equity
Total Liabilities and stockholders' equity
50,000
80,000
160,000
50,000
60,000
On January 2, year 1, ABC borrowed P60,000 and used the proceeds to purchase 90% of the outstanding
common shares of XYZ. This debt is payable in ten equal annual principal payments, plus interest,
beginning December 30, year 1. The excess cost of the investment over XYZ's book value of acquired net
assets should be allocated 60% to inventory and 40% to goodwill. On January 1, Year 1, the fair value of
ABC shares held by noncantrolling parties was 10,000.
On ABC's January 22, year 1 consolidated Statement of Financial Position, compute for the following
required amounts?
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