On January 1, Parent Company acquired 90% of Subsidiary Company in exchange for 5,400 shares of P10 par common stock having a market value of P120,600. Parent and Subsidiary condensed balance sheet on January 1, were as follows: Assets Parent Subsidiary Company Company P 30,900 34,200 22,900 179,000 37,400 9,100 16,100 40,000 10,000 112,600 Cash Accounts receivable, net Inventories Equipment, net Patents Total Assets P 267,000 Liabilities and Equities Accounts Payable Bonds Payable Common stock, P10 par Share Premium Retained earnings Total Liabilities and Equities P 4,000 100,000 100,000 15,000 48,000 267,000 P 6,600 50,000 15,000 41,000 P P 112,600 At the date of acquisition, all assets and liabilities of Subsidiary Company have book value approximately equal to their respective market values except the following as determine by appraisal as follows: Inventories (FIFO method) Equipment (net-remaining life 4 years) Patents (remaining life 10 years) P 17,100 48,000 13,000 ADDITIONAL INFORMATION: For the year ended December 31, the following results were given: Dividend Paid Net Income
On January 1, Parent Company acquired 90% of Subsidiary Company in exchange for 5,400 shares of P10 par common stock having a market value of P120,600. Parent and Subsidiary condensed balance sheet on January 1, were as follows: Assets Parent Subsidiary Company Company P 30,900 34,200 22,900 179,000 37,400 9,100 16,100 40,000 10,000 112,600 Cash Accounts receivable, net Inventories Equipment, net Patents Total Assets P 267,000 Liabilities and Equities Accounts Payable Bonds Payable Common stock, P10 par Share Premium Retained earnings Total Liabilities and Equities P 4,000 100,000 100,000 15,000 48,000 267,000 P 6,600 50,000 15,000 41,000 P P 112,600 At the date of acquisition, all assets and liabilities of Subsidiary Company have book value approximately equal to their respective market values except the following as determine by appraisal as follows: Inventories (FIFO method) Equipment (net-remaining life 4 years) Patents (remaining life 10 years) P 17,100 48,000 13,000 ADDITIONAL INFORMATION: For the year ended December 31, the following results were given: Dividend Paid Net Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the equity holders of parent (or controlling interest)
Transcribed Image Text:On January 1, Parent Company acquired 90% of Subsidiary Company in exchange for
5,400 shares of P10 par common stock having a market value of P120,600. Parent and
Subsidiary condensed balance sheet on January 1, were as follows:
Assets
Parent
Subsidiary
Company
Company
30,900
34,200
22,900
179,000
37,400
9,100
16,100
40,000
10,000
112,600
Cash
P
Accounts receivable, net
Inventories
Equipment, net
Patents
Total Assets
P
267,000
Liabilities and Equities
Accounts Payable
Bonds Payable
Common stock, P10 par
4,000
100,000
100,000
15,000
48,000
267,000
P
6,600
50,000
15,000
41,000
112,600
Share Premium
Retained earnings
Total Liabilities and Equities
At the date of acquisition, all assets and liabilities of Subsidiary Company have book value
approximately equal to their respective market values except the following as determined
by appraisal as follows:
Inventories (FIFO method)
Equipment (net-remaining life 4 years)
Patents (remaining life 10 years)
17,100
48,000
13,000
P
ADDITIONAL INFORMATION:
For the year ended December 31, the following results were given:
Dividend Paid
Net Income
Parent Company
15,000
4,000
30,200
9,400
Subsidiary Company
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education