S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date? Book ValueCash and Receivables P30,000100,000210,000Market ValueP30,000120,000300,000InventoryPlant Assets (net)Current Liabilities(45,000)(115,000)(10,000)(170,000)(45,000)(115,000)Long-term DebtCommon StockRetained Earnings

Consolidated financial statements are the summarized financial statements of an organization…

S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date?

S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Book Value
Cash and Receivables P30,000
100,000
210,000
Market Value
P30,000
120,000
300,000
Inventory
Plant Assets (net)
Current Liabilities
(45,000)
(115,000)
(10,000)
(170,000)
(45,000)
(115,000)
Long-term Debt
Common Stock
Retained Earnings

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