On January 1, 2021, ABC Co. acquired 80% interest in XYz, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABc Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 АВС Со. XYZ, Inc. Cash 20,000 10,000 Accounts receivable 60,000 80,000 24,000 46,000 Inventory Investment in subsidiary 150,000 400,000 Equipment 100,000 Accumulated depreciation Total assets (40,000) 670,000 (20,000) 160,000 Accounts payable 40,000 12,000 Bonds payable 60,000 340,000 130,000 100,000 Share capital Share premium Retained earnings Total liabilities and equity 100,000 670,000 48,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Carrying Fair Fair value XYZ, Inc. increment values 10,000 amounts Cash 10,000 Accounts receivable 24,000 24,000 62,000 Inventory Equipment Accumulated depreciation Accounts payable Net assets 46,000 16,000 100,000 (20,000) (24,000) (12,000) (12,000) 120,000 20,000 (4,000) 148,000 180,000 32,000 The equipment has a remaining useful life as of 4 years from January 1, 2021. ABC Co. elects to measure non-controlling interest as its proportionate share in XYZ's net identifiable assets. Compute for the consolidated asset.
On January 1, 2021, ABC Co. acquired 80% interest in XYz, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABc Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 АВС Со. XYZ, Inc. Cash 20,000 10,000 Accounts receivable 60,000 80,000 24,000 46,000 Inventory Investment in subsidiary 150,000 400,000 Equipment 100,000 Accumulated depreciation Total assets (40,000) 670,000 (20,000) 160,000 Accounts payable 40,000 12,000 Bonds payable 60,000 340,000 130,000 100,000 Share capital Share premium Retained earnings Total liabilities and equity 100,000 670,000 48,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Carrying Fair Fair value XYZ, Inc. increment values 10,000 amounts Cash 10,000 Accounts receivable 24,000 24,000 62,000 Inventory Equipment Accumulated depreciation Accounts payable Net assets 46,000 16,000 100,000 (20,000) (24,000) (12,000) (12,000) 120,000 20,000 (4,000) 148,000 180,000 32,000 The equipment has a remaining useful life as of 4 years from January 1, 2021. ABC Co. elects to measure non-controlling interest as its proportionate share in XYZ's net identifiable assets. Compute for the consolidated asset.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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