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 Investment in XYZ 1,584,375 853,125 Non-controlling interest 62,500 312,500 61.250 Inventories Equipment Patent Goodwill Investment in XYZ Non-controlling interest 468,750 The purchase price of ABC Inc included a control premium of P68 750. Determine the percentage owhed 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 Investment in XYZ 1,584,375 853,125 Non-controlling interest 62,500 312,500 61.250 Inventories Equipment Patent Goodwill Investment in XYZ Non-controlling interest 468,750 The purchase price of ABC Inc included a control premium of P68 750. Determine the percentage owhed by the parent.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Investment in XYZ
1,584,375
853,125
Non-controlling interest
Inventories
Equipment
Patent
Goodwill
62.500
312,500
61.250
Investment in XYZ
Non-controlling interest
468,750
The purchase price of ABC Inc included a control premium of P68 750.
Determine the percentage owhed by the parent.
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