On January 1, 2021, PARKSOOYOUNG acquired all the outstanding shares of SUNGJAE for P600,000. The shareholders’ equity of SUNGJAE on this date amounted to P600,000. The net assets of SUNGJAE on this day were fairly valued except for inventories which were overstated by P50,000, equipment which was understated by P75,000, and building which was overstated by P125,000. Only half of the inventories were sold during 2021. The useful lives of the equipment and the building at the beginning of 2021 were 3 years and 5 years remaining, respectively. On December 31, 2021, the statements of financial position of PARKSOOYOUNG and SUNGJAE are as follows: PARKSOOYOUNG SUNGJAE Cash 300,000 300,000 Inventory 400,000 250,000 Equipment 1,000,000 900,000 Building 600,000 500,000 Liabilities 1,100,000 500,000 Share capital 600,000 600,000 Retained earnings 600,000 850,000 How much is the consolidated total assets as of December 31, 2021? A. 4,125,000 B. 4,250,000 C. 4,150,0004, D. 275,000
On January 1, 2021, PARKSOOYOUNG acquired all the outstanding shares of
SUNGJAE for P600,000. The shareholders’ equity of SUNGJAE on this date
amounted to P600,000. The net assets of SUNGJAE on this day were fairly valued
except for inventories which were overstated by P50,000, equipment which was
understated by P75,000, and building which was overstated by P125,000. Only half of
the inventories were sold during 2021. The useful lives of the equipment and the
building at the beginning of 2021 were 3 years and 5 years remaining, respectively.
On December 31, 2021, the
and SUNGJAE are as follows:
PARKSOOYOUNG SUNGJAE
Cash 300,000 300,000
Inventory 400,000 250,000
Equipment 1,000,000 900,000
Building 600,000 500,000
Liabilities 1,100,000 500,000
Share capital 600,000 600,000
How much is the consolidated total assets as of December 31, 2021?
A. 4,125,000
B. 4,250,000
C. 4,150,0004,
D. 275,000
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