On May 1, 20x1, ABC Inc acquired most of the outstanding shares of XYZ Co for cash. Theincomplete working paper elimination entries on that date for the consolidated statement offinancial position of ABC Inc and its subsidiary are shown below:Stockholders' equity-XYZ| 2,437,5001,584,375853,125Investment in XYZNon-controlling interestInventoriesEquipmentPatent62,500312,50061,250GoodwillInvestment in XYZ468,750Non-controlling interestThe purchase price of ABC Inc included a control premium of P68,750.Determine the percentage owned by the parent.Your answer

For calculating the percentage owned by the parent the number of shares held by the subsidiary is…

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 Investment in XYZ Non-controlling interest 2,437,500 1,584,375 853,125 Inventories Equipment Patent 62,500 312,500 61,250 Goodwill Investment in XYZ 468,750 Non-controlling interest The purchase price of ABC Inc included a control premium of P68,750. 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 Investment in XYZ Non-controlling interest 2,437,500 1,584,375 853,125 Inventories Equipment Patent 62,500 312,500 61,250 Goodwill Investment in XYZ 468,750 Non-controlling interest The purchase price of ABC Inc included a control premium of P68,750. Determine the percentage owned by the parent.

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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Determine the percentage owned by the parent.
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SUBJECT : Accounting
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