SOLUTION IN GOOD ACCOUNTING FORMIn the December 31, year 1 consolidated balance sheet,noncontrolling interest should be reported at January 1,year 1, ABC Corporation purchased 80% of XYZCorporation's P10 par common stock for P975,000. On thisdate, the carrying amount of XYZ's net assets wasP1,000,000. The fair values of XYZ's identifiable assets andliabilities were the same as their carrying amounts except forplant assets (net) with fair values of P100,000 in excess oftheir carrying amount. The fair value of the noncontrollinginterest in XYZ on January 1, year 1, was P250,000. For theyear ended December 31, year 1, XYZ had net income ofP190,000 and paid cash dividends totaling P125,000. :.

Name: SOLUTION IN GOOD ACCOUNTING FORMIn the December 31, year 1 consolidate
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Description: SOLUTION IN GOOD ACCOUNTING FORMIn the December 31, year 1 consolidated balance sheet,noncontrolling interest should be reported at January 1,year 1, ABC Corporation purchased 80% of XYZCorporation's P10 par common stock for P975,000. On thisdate, th

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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SOLUTION IN GOOD ACCOUNTING FORM In the December 31, year 1 consolidated balance sheet, noncontrolling interest should be reported at

January 1,
year 1, ABC Corporation purchased 80% of XYZ
Corporation's P10 par common stock for P975,000. On this
date, the carrying amount of XYZ's net assets was
P1,000,000. The fair values of XYZ's identifiable assets and
liabilities were the same as their carrying amounts except for
plant assets (net) with fair values of P100,000 in excess of
their carrying amount. The fair value of the noncontrolling
interest in XYZ on January 1, year 1, was P250,000. For the
year ended December 31, year 1, XYZ had net income of
P190,000 and paid cash dividends totaling P125,000. :.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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