Frankie Corporation purchased 100% of Blake Company for P600,000. At that date, Blake Company had the following book values and market values: Book Value Market Value Cash and receivables 60,000 60,000 Inventory 180,000 230,000 Plant Assets (net) 375,000 475,000 Current liabilities (95,000) (95,000) Long-term debt (215,000) (215,000) Common stock (25,000) Retained earnings (280,000) What is the total purchase differential? Select one: a. P205,000 b. P145,000 c. P295,000 d. P-0-

Frankie Corporation purchased 100% of Blake Company for P600,000. At that date, Blake Company had the following book values and market values: Book Value Market Value Cash and receivables 60,000 60,000 Inventory 180,000 230,000 Plant Assets (net) 375,000 475,000 Current liabilities (95,000) (95,000) Long-term debt (215,000) (215,000) Common stock (25,000) Retained earnings (280,000) What is the total purchase differential? Select one: a. P205,000 b. P145,000 c. P295,000 d. P-0-

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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