On January 1, 2019. P Corporation purchased 75% of the common stock of S Company. Separate balancesheet data for the companies at the combination date are given below:PCorporation CompanyP9,60057,60052,80031,200280,000(96,000)CashP82,40010,40015,20012,800120,000(24,000)Accounts receivableInventoryLandPlant assetsAccumulateddepreciationInvestment in UckyTotal assetsAccounts payableCapital stockRetained earningsTotal equities156,800P492,000 P216,800P82,400320,00089,600P492.000 P216,800P56,800120,00040,000At the date of combination the book values of S Company's net assets was equal to the fair value of the netassets except for S Company's inventory which has a fair value of P24,000. Indicate in each of the questionswhat the consolidated balance would be for the requested account, assuming the amount assigned to NCI isthe proportionate share in the fair value of net assets.1. What amount of inventory will be reportedа. Р52,800b. Р68,000c. P74,600d. P 76,8002. What is the amount of the non-controlling interest?а. Р 40,000b. Р 42,200с. Р 52,267d. P 120,000

Answer 1:- d P76,800 amount of inventory will be reported. Explanation:- Computation of inventory…

On January 1, 2019. P Corporation purchased 75% of the common stock of S Company. Separate balance sheet data for the companies at the combination date are given below: P S Corporation Company P9,600 57,600 52,800 31,200 280,000 (96,000) (24,000) Cash Accounts receivable P82,400 10,400 15,200 12,800 120,000 Inventory Land Plant assets Accumulated depreciation Investment in Ucky Total assets Accounts payable Capital stock Retained earnings Total equities 156,800 P492,000 P216,800 P82,400 320,000 89,600 P492,000 P216,800 Р56,800 120,000 40,000 At the date of combination the book values of S Company's net assets was equal to the fair value of the net assets except for S Company's inventory which has a fair value of P24,000. Indicate in each of the questions what the consolidated balance would be for the requested account, assuming the amount assigned to NCI is the proportionate share in the fair value of net assets. 1. What amount of inventory will be reported а. Р52,800 b. Р68,000 c. P74,600 d. P 76,800 2. What is the amount of the non-controlling interest? а. Р 40,000 b. Р 42,200 с. Р 52,267 d. P 120,000

On January 1, 2019. P Corporation purchased 75% of the common stock of S Company. Separate balance sheet data for the companies at the combination date are given below: P S Corporation Company P9,600 57,600 52,800 31,200 280,000 (96,000) (24,000) Cash Accounts receivable P82,400 10,400 15,200 12,800 120,000 Inventory Land Plant assets Accumulated depreciation Investment in Ucky Total assets Accounts payable Capital stock Retained earnings Total equities 156,800 P492,000 P216,800 P82,400 320,000 89,600 P492,000 P216,800 Р56,800 120,000 40,000 At the date of combination the book values of S Company's net assets was equal to the fair value of the net assets except for S Company's inventory which has a fair value of P24,000. Indicate in each of the questions what the consolidated balance would be for the requested account, assuming the amount assigned to NCI is the proportionate share in the fair value of net assets. 1. What amount of inventory will be reported а. Р52,800 b. Р68,000 c. P74,600 d. P 76,800 2. What is the amount of the non-controlling interest? а. Р 40,000 b. Р 42,200 с. Р 52,267 d. P 120,000

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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