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:
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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determine the amount of
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:
Transcribed Image Text:Stockholders' equity-XYZ
2,437,500
1,584,375
853,125
Investment in XYZ
Non-controlling interest
Inventories
Equipment
Patent
Goodwill
Investment in XYZ
62,500
312,500
61,250
468,750
Non-controlling interest
The purchase price of ABC Inc included a control premium of P68,750.
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