January 1, 2017, ITC Co. acquired 80% of ESP Inc.'s outstanding stocks for P1,600,000 cash. ESP Inc.'s balance sheet shows P3,000,000 identifiable assets and P1,800,000 liabilities. All assets and liabilities of Setter are fairly valued, except for an undervalued equipment. The stock acquisition resulted to a goodwill of P700,000. Assume ITC had P5,000,000 total assets prior to the said transaction. NCI is measured at fair value. How much is the total assets in the consolidated balance sheet after the stock acquisition?
January 1, 2017, ITC Co. acquired 80% of ESP Inc.'s outstanding stocks for P1,600,000 cash. ESP Inc.'s balance sheet shows P3,000,000 identifiable assets and P1,800,000 liabilities. All assets and liabilities of Setter are fairly valued, except for an undervalued equipment. The stock acquisition resulted to a goodwill of P700,000. Assume ITC had P5,000,000 total assets prior to the said transaction. NCI is measured at fair value. How much is the total assets in the consolidated balance sheet after the stock acquisition?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2017, ITC Co. acquired 80% of ESP Inc.'s outstanding stocks for P1,600,000 cash. ESP Inc.'s
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