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-
1.What amount of total inventory will be reported in the consolidated
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
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