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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
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.
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