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