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ABC Company and XYZ Company reported the following condensed Statements of Financial Position on January 1, year 1. Current Assets Noncurrent Assets Total Assets Current Liabilities Long-term debt Stockholders' Equity Total Liabilities and stockholders' equity ABC Company XYZ Company 20,000 40,000 70,000 90,000 160,000 30,000 50,000 80,000 160,000 60,000 10,000 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 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. Current Assets Noncurrent Assets Total Assets Current Liabilities Long-term debt Stockholders' Equity Total Liabilities and stockholders' equity ABC Company XYZ Company 20,000 40,000 70,000 90,000 160,000 30,000 50,000 80,000 160,000 60,000 10,000 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 noncontrolling parties was 10,000. On ABC's January 22, year 1 consolidated Statement of Financial Position, compute for the following required amounts?

FINANCIAL ACCOUNTING
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 Current Assets
ABC Company and XYZ Company reported the following condensed Statements of Financial Position on January 1, year 1. ABC Company 70,000 90,000 XYZ Company 20,000 40,000 60,000 10,000 Current Assets Noncurrent Assets Total Assets 160,000 30,000 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 noncontrolling parties was 10,000. On ABC's January 22, year 1 consolidated Statement of Financial Position, compute for the following required amounts?
Transcribed Image Text:ABC Company and XYZ Company reported the following condensed Statements of Financial Position on January 1, year 1. ABC Company 70,000 90,000 XYZ Company 20,000 40,000 60,000 10,000 Current Assets Noncurrent Assets Total Assets 160,000 30,000 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 noncontrolling 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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