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Problem 3 On January 1, 20x9, Maykaya Corporation acquired 80 percent of Galisod Company's  common stock for P160,000 cash. The fair value of the non-controlling interest at that date was  determined to be P40,000. Data from the balance sheets of the two companies included the  following amounts as of the date of acquisition: At the date of the business combination, the book values of Galisod’s net assets and liabilities  approximated fair value except for inventory, which had a fair value of P45,000, and land,  which had a fair value of P60,000 (using the full-goodwill approach).   1.What amount of total inventory will be reported in the consolidated balance sheet  prepared immediately after the business combination? a. P130,000 b. P135,000 c. P90,000 d. P45,000  2. What amount of goodwill will be reported in the consolidated balance sheet prepared  immediately after the business combination? a. P0 b. P40,000 c. P20,000 d. P15,000 3. What amount of total assets will be reported in the consolidated balance sheet prepared  immediately after the business combination? a. P720,000 b. P840,000 c. P825,000 d. P865,000

Problem 3 On January 1, 20x9, Maykaya Corporation acquired 80 percent of Galisod Company's  common stock for P160,000 cash. The fair value of the non-controlling interest at that date was  determined to be P40,000. Data from the balance sheets of the two companies included the  following amounts as of the date of acquisition: At the date of the business combination, the book values of Galisod’s net assets and liabilities  approximated fair value except for inventory, which had a fair value of P45,000, and land,  which had a fair value of P60,000 (using the full-goodwill approach).   1.What amount of total inventory will be reported in the consolidated balance sheet  prepared immediately after the business combination? a. P130,000 b. P135,000 c. P90,000 d. P45,000  2. What amount of goodwill will be reported in the consolidated balance sheet prepared  immediately after the business combination? a. P0 b. P40,000 c. P20,000 d. P15,000 3. What amount of total assets will be reported in the consolidated balance sheet prepared  immediately after the business combination? a. P720,000 b. P840,000 c. P825,000 d. P865,000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 13GI
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Problem 3
On January 1, 20x9, Maykaya Corporation acquired 80 percent of Galisod Company's 
common stock for P160,000 cash. The fair value of the non-controlling interest at that date was 
determined to be P40,000. Data from the balance sheets of the two companies included the 
following amounts as of the date of acquisition:
At the date of the business combination, the book values of Galisod’s net assets and liabilities 
approximated fair value except for inventory, which had a fair value of P45,000, and land, 
which had a fair value of P60,000 (using the full-goodwill approach).

 

1.What amount of total inventory will be reported in the consolidated balance sheet 
prepared immediately after the business combination?
a. P130,000

b. P135,000
c. P90,000
d. P45,000 

2. What amount of goodwill will be reported in the consolidated balance sheet prepared 
immediately after the business combination?
a. P0
b. P40,000
c. P20,000
d. P15,000

3. What amount of total assets will be reported in the consolidated balance sheet prepared 
immediately after the business combination?
a. P720,000
b. P840,000
c. P825,000
d. P865,000

Cash.. ….. Accounts Receivable Inventory. .... Land.. Buildings and Equipment. Less: Accumulated Depreciation.. Investment in SS Enterprises Stock . . . Total Assets... Accounts Payable .. Bonds Payable .. Common Stock Retained Earnings .. H Total Liabilities and Stockholders' Equity.. .... ... Maykaya 60,000.00 80,000.00 90,000.00 100,000.00 200,000.00 (80,000.00) 160,000.00 610,000.00 110,000.00 95,000.00 200,000.00 205,000.00 610,000.00 Galisod 20,000.00 30,000.00 40,000.00 40,000.00 150,000.00 (50,000.00) 230,000.00 30,000.00 40,000.00 40,000.00 120,000.00 230,000.00
Transcribed Image Text:Cash.. ….. Accounts Receivable Inventory. .... Land.. Buildings and Equipment. Less: Accumulated Depreciation.. Investment in SS Enterprises Stock . . . Total Assets... Accounts Payable .. Bonds Payable .. Common Stock Retained Earnings .. H Total Liabilities and Stockholders' Equity.. .... ... Maykaya 60,000.00 80,000.00 90,000.00 100,000.00 200,000.00 (80,000.00) 160,000.00 610,000.00 110,000.00 95,000.00 200,000.00 205,000.00 610,000.00 Galisod 20,000.00 30,000.00 40,000.00 40,000.00 150,000.00 (50,000.00) 230,000.00 30,000.00 40,000.00 40,000.00 120,000.00 230,000.00
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