On January 1, 20x1, Entity A acquires Entity B in a business combination. The financial statements of the combining constituents are shown below: Entity A 12,000 Entity B 6,000 Cash in bank Accounts receivable 36,000 14,400 48,000 90,000 Inventory Investment in subsidiary Building, net Total assets 27,600 216,000 48,000 402,000 96,000 Accounts payable Share capital Share premium Retained earnings Total liabilities and equity 60,000 7,200 204,000 60,000 78,000 60,000 28,800 402,000 96,000 Additional information: Entity B's assets and liabilities are stated at their acquisition-date fair values, except for the following: Inventory, P37,200 Building, net, P57,600 The goodwill determined under PFRS 3 is P3,600. The NCI in the net assets of the subsidiary, also determined under PFRS 3, is #21,600.
On January 1, 20x1, Entity A acquires Entity B in a business combination. The financial statements of the combining constituents are shown below: Entity A 12,000 Entity B 6,000 Cash in bank Accounts receivable 36,000 14,400 48,000 90,000 Inventory Investment in subsidiary Building, net Total assets 27,600 216,000 48,000 402,000 96,000 Accounts payable Share capital Share premium Retained earnings Total liabilities and equity 60,000 7,200 204,000 60,000 78,000 60,000 28,800 402,000 96,000 Additional information: Entity B's assets and liabilities are stated at their acquisition-date fair values, except for the following: Inventory, P37,200 Building, net, P57,600 The goodwill determined under PFRS 3 is P3,600. The NCI in the net assets of the subsidiary, also determined under PFRS 3, is #21,600.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
- How much is the consolidated total assets on January 1, 20x1?
- How much is the consolidated total equity on January 1, 20x1?
Transcribed Image Text:On January 1, 20x1, Entity A acquires Entity B in a business combination. The financial statements of
the combining constituents are shown below:
Entity A
12,000
Entity B
6,000
Cash in bank
Accounts receivable
36,000
14,400
Inventory
Investment in subsidiary
Building, net
Total assets
48,000
27,600
90,000
216,000
48,000
402,000
96,000
Accounts payable
Share capital
Share premium
Retained earnings
Total liabilities and equity
60,000
7,200
204,000
60,000
78,000
60,000
28,800
402,000
96,000
Additional information:
Entity B's assets and liabilities are stated at their acquisition-date fair values, except for the
following:
Inventory, P37,200
Building, net, P57,600
The goodwill determined under PFRS 3 is P3,600.
The NCI in the net assets of the subsidiary, also determined under PFRS 3, is P21,600.
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