On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of ABC Inc and its subsidiary are shown below: Stockholders' equity-XYZ 2,437,500 1,584,375 853,125 Investment in XYZ Non-controlling interest Inventories 62,500 312,500 61,250 Equipment Patent Goodwill Investment in XYZ 468,750 Non-controlling interest ? The purchase price of ABC Inc included a control premium of P68,750.

On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of ABC Inc and its subsidiary are shown below: Stockholders' equity-XYZ 2,437,500 1,584,375 853,125 Investment in XYZ Non-controlling interest Inventories 62,500 312,500 61,250 Equipment Patent Goodwill Investment in XYZ 468,750 Non-controlling interest ? The purchase price of ABC Inc included a control premium of P68,750.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

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Determine the percentage owned by the parent

On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. The
incomplete working paper elimination entries on that date for the consolidated statement of
financial position of ABC Inc and its subsidiary are shown below:
Stockholders' equity-XYZ
2,437,500
1,584,375
853,125
Investment in XYZ
Non-controlling interest
Inventories
62,500
312,500
61,250
Equipment
Patent
Goodwill
Investment in XYZ
468,750
Non-controlling interest
?
The purchase price of ABC Inc included a control premium of P68,750.

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