cash. Oh thls date, the equity or S Company Jahuary 3, 2019, P Company acquired 70% Interest in S Company for P4,200 s as follows: Ordinary Share Capital Accumulated Profits P. Company 3,300,000 S Company 1,450,000 2,800,000 5,450,000 There was no issuance of ordinary shares during the year. Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life - 5 years), P600,000. All other assets and liabilities are fairly valued. Goodwill is impaired by P225,000. P Company reported ncome and declared dividend of P1,425,500 and P380,250, respectively. S Company has income and dividend declared of P750,000 and P150,000, respectively.
cash. Oh thls date, the equity or S Company Jahuary 3, 2019, P Company acquired 70% Interest in S Company for P4,200 s as follows: Ordinary Share Capital Accumulated Profits P. Company 3,300,000 S Company 1,450,000 2,800,000 5,450,000 There was no issuance of ordinary shares during the year. Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life - 5 years), P600,000. All other assets and liabilities are fairly valued. Goodwill is impaired by P225,000. P Company reported ncome and declared dividend of P1,425,500 and P380,250, respectively. S Company has income and dividend declared of P750,000 and P150,000, respectively.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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Question
How much is the consolidated equity as of December 31, 2019?
![On January 3, 2019, P Company acquired 70% interest in S Company for P4,200,000 cash. On this date, the equity of S Company
is as follows:
P. Company
3,300,000
S Company
1,450,000
Ordinary Share Capital
Accumulated Profits
5,450,000
2,800,000
There was no issuance of ordinary shares during the year. Non-controlling interest is initially measured at fair value of P1,675,000.
Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life
– 5 years), P600,000. All other assets and liabilities are fairly valued. Goodwill is impaired by P225,000. P Company reported
income and declared dividend of P1,425,500 and P380,250, respectively. S Company has income and dividend declared of
P750,000 and P150,000, respectively.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d37aa5d-ed09-4746-a5e4-1a7c96fad5be%2F54eb4e75-1ff9-4afc-8af7-de5fa83f6cd1%2Fy7722n_processed.png&w=3840&q=75)
Transcribed Image Text:On January 3, 2019, P Company acquired 70% interest in S Company for P4,200,000 cash. On this date, the equity of S Company
is as follows:
P. Company
3,300,000
S Company
1,450,000
Ordinary Share Capital
Accumulated Profits
5,450,000
2,800,000
There was no issuance of ordinary shares during the year. Non-controlling interest is initially measured at fair value of P1,675,000.
Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life
– 5 years), P600,000. All other assets and liabilities are fairly valued. Goodwill is impaired by P225,000. P Company reported
income and declared dividend of P1,425,500 and P380,250, respectively. S Company has income and dividend declared of
P750,000 and P150,000, respectively.
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