Item Power 44,000 P Silk 30,000 Cash Accounts Receivable 110,000 45,000 Inventory Land 130,000 70,000 25,000 400,000 UNIV 80,000 500,000 (223,000) 150,500 Buildings and equipment Less: Accumulated depreciation Investment in Silk Corporation stock (165,000) Total Assets P 791,500 P 405,000 Accounts payable Taxes payable Bonds payable Common stock 61,500 P 95,000 280,000 150,000 205,000 28,000 37,000 200,000 50,000 90,000 Retained earnings Total Liabilities and Stockholders’ Equity P 791,500 P 405,000 After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fair value except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45, 000. The fair value of the non-controlling interest was P64,500 on December 31, 20x2. For each of the question below, indicate the appropriate total that should appear in the consolidated balance sheet immediately after the business combination on the basis of full-goodwill approach:
Item Power 44,000 P Silk 30,000 Cash Accounts Receivable 110,000 45,000 Inventory Land 130,000 70,000 25,000 400,000 UNIV 80,000 500,000 (223,000) 150,500 Buildings and equipment Less: Accumulated depreciation Investment in Silk Corporation stock (165,000) Total Assets P 791,500 P 405,000 Accounts payable Taxes payable Bonds payable Common stock 61,500 P 95,000 280,000 150,000 205,000 28,000 37,000 200,000 50,000 90,000 Retained earnings Total Liabilities and Stockholders’ Equity P 791,500 P 405,000 After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fair value except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45, 000. The fair value of the non-controlling interest was P64,500 on December 31, 20x2. For each of the question below, indicate the appropriate total that should appear in the consolidated balance sheet immediately after the business combination on the basis of full-goodwill approach:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Power Corporation acquired 70 percent of Silk Corporation’s common stock on December 31, 20x2.
for the two companies immediately following acquisition follow:
7. What amount of consolidated
P 295,000 C. P 232,000
B. P 268,000 D. P 205,000
8. What amount of
A. P 355,000 C. P 419,500
B. P 397,000
Transcribed Image Text:Silk
30,000
45,000
Item
Power
44,000
Cash
P
P
Accounts Receivable
110,000
Inventory
130,000
70,000
80,000
500,000
Land
25,000
400,000
Buildings and equipment
Less: Accumulated depreciation
Investment in Silk Corporation stock
UNIT
(223,000)
150,500
P 791,500
(165,000)
Total Assets
P 405,000
Accounts payable
Taxes payable
Bonds payable
61,500
95,000
280,000
28,000
37,000
200,000
50,000
90,000
Common stock
150,000
Retained earnings
Total Liabilities and Stockholders’ Equity
205,000
P 791,500
P 405,000
After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fair
value except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45, 000. The fair
value of the non-controlling interest was P64,500 on December 31, 20x2.
For each of the question below, indicate the appropriate total that should appear in the consolidated balance sheet
immediately after the business combination on the basis of full-goodwill approach:
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