On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp's common stock forP160,000 cash. The fair value of the non-controlling interest at the date was determinedto be P40,000. Data from the balance sheets of the two companies included thefollowing accounts as of the date of acquisition:• On the date of the business combination, the book values of Vaxx Corp's net assetsand liabilities approximated fair value except for inventory, which has a fair value ofP45,000, and land, which had a fair value of P60,000. (using full goodwill approach). Pfizer Corporation Vaxx CorporationCash60,00020,000Accounts receivable80,00030,000Inventory90,00040,000Land100,00040,000Buildings and equipment200,000150,000Less: Accumulated depreciation(80,000)(50,000)Investment in Vaxx Corp. stock160,000Total Assets610,000230,000Accounts payable110,00030,000Bonds payable95,00040,000Common stock200,00040,000Retained earnings205,000120,000Total Liabilities and Equity610,000230,000What amount of consolidated retained earnings will be reported?

Pfizer Corp acquired 80% share in Vax Corp. So now as per law Pfizer…

On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp's common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: • On the date of the business combination, the book values of Vaxx Corp's net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill

On January 1, 2020, Pfizer Corp. acquired 80% of Vaxx Corp's common stock for P160,000 cash. The fair value of the non-controlling interest at the date was determined to be P40,000. Data from the balance sheets of the two companies included the following accounts as of the date of acquisition: • On the date of the business combination, the book values of Vaxx Corp's net assets and liabilities approximated fair value except for inventory, which has a fair value of P45,000, and land, which had a fair value of P60,000. (using full goodwill

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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