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D00 DO Accounts Payable Income Taxes Payable Bonds Payable Common Stock DO

D00 DO Accounts Payable Income Taxes Payable Bonds Payable Common Stock DO

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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BADVACIX – ACCOUNTING FOR BUSINESS COMBINATIONS MODULE 2: CONSOLIDATED FINANCIAL STATEMENTS PROBLEM 1 (80% - Owned Subsidiary) Sim Corporation's balance sheet at January 1, 20x4, reflected the following balances: P 80,000 120,000 70,000 Buildings and Equipment (net) 480,000 P 40,000 60,000 200,000 250,000 200,000 P750,000 Cash and Receivables Accounts Payable Income Taxes Payable Bonds Payable Common Stock Inventory Land Retained Eamings Total Liabilities and Stockholders Equity Total Assets P750,000 Ford Corporation entered into an acquisition program and acquired 80 percent of Slim's common stock on January 2, 20x4, for P470,000. The fair value of the non controlling interest at the date was determined to be at P117,500. A careful review of the fair value of AA's assets and liabilities indicated the following: Accounts Book value Fair value Inventory Land P120,000 70,000 Buildings and equipment (net) 480,000 P140,000 60,000 550,000 Required 1: Compute the appropriate amount to be induded in the consolidated balance sheet immediately following the acquisition for each of the following items: (Using fair value or full goodwill method) 1. Inventory 2. Land 3. Buildings and Equipment (net). 4. Goodwill 5. Investment in Slim Corporation 6. Total assets 7. Total liabilities 8. Controlling Interest or Parent Stockholders' Equity 9. Non-controlling interest 10. Consolidated Stockholders' Equity Required 2: Compute the appropriate amount to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: (Using proportionate or partial goodwill method) 1. Inventory 2. Land 3. Buildings and Equipment (net). 4. Goodwill 5. Investment in Slim Corporation 6. Total assets 7. Total liabilities 8. Controlling Interest or Parent Stockholders' Equity 9. Non-controlling interest 10. Consolidated Stockholders' Equity
Transcribed Image Text:BADVACIX – ACCOUNTING FOR BUSINESS COMBINATIONS MODULE 2: CONSOLIDATED FINANCIAL STATEMENTS PROBLEM 1 (80% - Owned Subsidiary) Sim Corporation's balance sheet at January 1, 20x4, reflected the following balances: P 80,000 120,000 70,000 Buildings and Equipment (net) 480,000 P 40,000 60,000 200,000 250,000 200,000 P750,000 Cash and Receivables Accounts Payable Income Taxes Payable Bonds Payable Common Stock Inventory Land Retained Eamings Total Liabilities and Stockholders Equity Total Assets P750,000 Ford Corporation entered into an acquisition program and acquired 80 percent of Slim's common stock on January 2, 20x4, for P470,000. The fair value of the non controlling interest at the date was determined to be at P117,500. A careful review of the fair value of AA's assets and liabilities indicated the following: Accounts Book value Fair value Inventory Land P120,000 70,000 Buildings and equipment (net) 480,000 P140,000 60,000 550,000 Required 1: Compute the appropriate amount to be induded in the consolidated balance sheet immediately following the acquisition for each of the following items: (Using fair value or full goodwill method) 1. Inventory 2. Land 3. Buildings and Equipment (net). 4. Goodwill 5. Investment in Slim Corporation 6. Total assets 7. Total liabilities 8. Controlling Interest or Parent Stockholders' Equity 9. Non-controlling interest 10. Consolidated Stockholders' Equity Required 2: Compute the appropriate amount to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: (Using proportionate or partial goodwill method) 1. Inventory 2. Land 3. Buildings and Equipment (net). 4. Goodwill 5. Investment in Slim Corporation 6. Total assets 7. Total liabilities 8. Controlling Interest or Parent Stockholders' Equity 9. Non-controlling interest 10. Consolidated Stockholders' Equity
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