On January 1, 2020, ABS Corporation purchased 75% of the common stock of LOPEZ Company. Separate balance sheet data for the companies at the combination data are given below: ABS LOPEZ Cash P 84,000 P 721,000 Trade Receivable 504,000 91,000 Merchandise Inventory 462,000 133,000 Land 273,000 112,000 Plant Assets 2,450,000 1,050,000 Accumulated Depreciation (840,000) (210,000) Investment in LOPEZ 1,372,000 Total Assets 4,305,000 1,897,000 Accounts Payable P 721,000 P 497,000 Capital Stock 2,800,000 1,050,000 Retained Earnings 784,000 350,000 Total Equities 4,305,000 P 1,897,000 On the date of combination the book values of LOPEZ's net assets was equal to the fair value of the net assets except for LOPEZ's inventory which has a fair value of P210,000. On the date of acquisition in the consolidated balance sheet, how much is the total assets?
On January 1, 2020, ABS Corporation purchased 75% of the common stock of LOPEZ Company. Separate
ABS LOPEZ
Cash P 84,000 P 721,000
Trade Receivable 504,000 91,000
Merchandise Inventory 462,000 133,000
Land 273,000 112,000
Plant Assets 2,450,000 1,050,000
Investment in LOPEZ 1,372,000
Total Assets 4,305,000 1,897,000
Accounts Payable P 721,000 P 497,000
Capital Stock 2,800,000 1,050,000
Total Equities 4,305,000 P 1,897,000
On the date of combination the book values of LOPEZ's net assets was equal to the fair value of the net assets except for LOPEZ's inventory which has a fair value of P210,000.
On the date of acquisition in the consolidated balance sheet, how much is the total assets?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
