On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary's Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,00O. The following are taken from the books of Parent and Subsidiary for 20x8. * Subsidiary 2,000,000 1,500,000 350,000 150, 000 50,000 Parent Sales 550,000 200,000 100,000 Gross Profit Net Income Dividend Declared (to be paid on Jan 15, 20x9) Total Assets 5,000,000 4,000,000 Determine the Total Assets as of December 31, 20x8.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, 20x8,Parent Company purchased 80% of the outstanding
shares of Subsidiary Company for P800,000. On the date of acquisition,
Subsidiary Company reported Ordinary Shares of P800,000 and Retained
Earnings of P200,000. Subsidiary's Inventory was understated by
P20,000; Equipment with a 5-year life was understated by P20,000,
Building with an 8-year life was understated by P80,000 and land was
understated by P40,000. The non-controlling interest is to be stated at
fair value and the fair value of the non-controlling interest on January 1,
20x8 is P210,000. The following are taken from the books of Parent and
Subsidiary for 20x8. *
Parent
Subsidiary
Sales
2,000,000 1,500,000
350, 000
150,000
50,000
Gross Profit
550,000
200,000
100,000
Net Income
Dividend Declared (to be paid on Jan
15, 20x9)
Total Assets
5,000,000 4,000,000
Determine the Total Assets as of December 31, 20x8.
Transcribed Image Text:On January 1, 20x8,Parent Company purchased 80% of the outstanding shares of Subsidiary Company for P800,000. On the date of acquisition, Subsidiary Company reported Ordinary Shares of P800,000 and Retained Earnings of P200,000. Subsidiary's Inventory was understated by P20,000; Equipment with a 5-year life was understated by P20,000, Building with an 8-year life was understated by P80,000 and land was understated by P40,000. The non-controlling interest is to be stated at fair value and the fair value of the non-controlling interest on January 1, 20x8 is P210,000. The following are taken from the books of Parent and Subsidiary for 20x8. * Parent Subsidiary Sales 2,000,000 1,500,000 350, 000 150,000 50,000 Gross Profit 550,000 200,000 100,000 Net Income Dividend Declared (to be paid on Jan 15, 20x9) Total Assets 5,000,000 4,000,000 Determine the Total Assets as of December 31, 20x8.
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