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On January 01, 2018, Parent Company acquired 80% of the outstanding stock of Subsidiary Company for P3,400.000. On the date of acquisition, the condensed statement of financial position of Parent Company and Parent Company Subsidiary Company are given as follows: Subsidiary Company 9,150,000.00 Current Assets Plant and Equipment Goodwill 1,830,000.00 13,800,000.00 2,760,000.00 300.000.00 P4,890,000.00 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 Total Assets P22,950,000.00 Liabilities 5,700,000.00 12,000,000.00 3,900,000.00 Ordinary Share Capital, 100 par Share Premium Retained Earnings Total Liabilities & SHE 1,350,000.00 P22,950,000.00 An appraisal made by an independent appraiser indicated that the fair value of Subsidiary Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50.000 was paid. Parent Company elected to measure non-controlling interest proportionate to their share in identifiable net assets.

On January 01, 2018, Parent Company acquired 80% of the outstanding stock of Subsidiary Company for P3,400.000. On the date of acquisition, the condensed statement of financial position of Parent Company and Parent Company Subsidiary Company are given as follows: Subsidiary Company 9,150,000.00 Current Assets Plant and Equipment Goodwill 1,830,000.00 13,800,000.00 2,760,000.00 300.000.00 P4,890,000.00 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 Total Assets P22,950,000.00 Liabilities 5,700,000.00 12,000,000.00 3,900,000.00 Ordinary Share Capital, 100 par Share Premium Retained Earnings Total Liabilities & SHE 1,350,000.00 P22,950,000.00 An appraisal made by an independent appraiser indicated that the fair value of Subsidiary Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50.000 was paid. Parent Company elected to measure non-controlling interest proportionate to their share in identifiable net assets.

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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On January 01, 2018, Parent Company acquired 80% of the outstanding stock of Subsidiary Company for P3,400.000. On the date of acquisition, the condensed statement of financial position of Parent Company and Parent Company Subsidiary Company are given as follows: Subsidiary Company 1,830,000.00 Current Assets 9,150,000.00 Plant and Equipment Goodwill Total Assets 13,800,000.00 2,760,000.00 300.000.00 P4,890,000.00 P22,950,000.00 5,700,000.00 12,000,000.00 3,900,000.00 1.350,000.00 P22,950,000.00 Liabilities 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 Ordinary Share Capital, 100 par Share Premium Retained Eamings Total Liabilities & SHE An appraisal made by an independent appraiser indicated that the fair value of Subsidiary Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50,000 was paid. Parent Company elected to measure non-controlling interest proportionate to their share in identifiable net assets. Using the data on the date of acquisition, the NCI balance is *
Transcribed Image Text:On January 01, 2018, Parent Company acquired 80% of the outstanding stock of Subsidiary Company for P3,400.000. On the date of acquisition, the condensed statement of financial position of Parent Company and Parent Company Subsidiary Company are given as follows: Subsidiary Company 1,830,000.00 Current Assets 9,150,000.00 Plant and Equipment Goodwill Total Assets 13,800,000.00 2,760,000.00 300.000.00 P4,890,000.00 P22,950,000.00 5,700,000.00 12,000,000.00 3,900,000.00 1.350,000.00 P22,950,000.00 Liabilities 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 Ordinary Share Capital, 100 par Share Premium Retained Eamings Total Liabilities & SHE An appraisal made by an independent appraiser indicated that the fair value of Subsidiary Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50,000 was paid. Parent Company elected to measure non-controlling interest proportionate to their share in identifiable net assets. Using the data on the date of acquisition, the NCI balance is *
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