ABC Corporation acquired 80 percent of XYZ Corporation on August 1 for P500,000. On that date, XYZ Corporation had the following book values and market values.What is the amount of non controlling interest on the acquisition date consolidated balance sheet? Book ValueP60,000130,000580,000200,00040,000(250,000)(10,000)(450,000)(300,000)Market ValueP60,000210,000630,000CashInventoryPlant Assets (net)Cost of Goods SoldDepreciation ExpenseLiabilities(250,000)Common StockRetained EarningsSales

Identifiable net asset and share of NCI: Amount (P) Cash 60,000 Inventory…

Answered: ABC Corporation acquired 80 percent of…

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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ABC Corporation acquired 80 percent of XYZ Corporation on August 1 for P500,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of non controlling interest on the acquisition date consolidated balance sheet?

Book Value
P60,000
130,000
580,000
200,000
40,000
(250,000)
(10,000)
(450,000)
(300,000)
Market Value
P60,000
210,000
630,000
Cash
Inventory
Plant Assets (net)
Cost of Goods Sold
Depreciation Expense
Liabilities
(250,000)
Common Stock
Retained Earnings
Sales

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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