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U. c. P81,900 d. P105,100

U. c. P81,900 d. P105,100

FINANCIAL ACCOUNTING
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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Please answer numbers 17 and 18. Thank you

The book value of the interest acquired is: a. P77,000 b. P110,000 c. P81,900 d. P105,100 18. The stockholders' equity of Shell Company on its separate balance sheet is: P74,900 b. P107,000 c. P110,000 d. P117,000 a. с.
Transcribed Image Text:The book value of the interest acquired is: a. P77,000 b. P110,000 c. P81,900 d. P105,100 18. The stockholders' equity of Shell Company on its separate balance sheet is: P74,900 b. P107,000 c. P110,000 d. P117,000 a. с.
uiuuLIO 17. Petron Company acquired 70% of the outstanding shares of Shell Company on January 1, 2020. The separate balance of Petron Company after the business combination and the consolidated balance sheet on the date of acquisition are shown below. Of the price difference, P7,000 is allocated to undervalued fixed assets and the balance to goodwill. Petron Consolidated 116,700 270,000 90,000 146,000 370,000 Current Assets Fixed Assets Investment in Shell Company Goodwill 8,100 ТОTAL 476,700 524,100 Current Liabilities 15,700 28,000 350,000 111,000 35,100 524,100 Share Capital 350,000 111,000 Share Premium NCI ТОТAL 476,700
Transcribed Image Text:uiuuLIO 17. Petron Company acquired 70% of the outstanding shares of Shell Company on January 1, 2020. The separate balance of Petron Company after the business combination and the consolidated balance sheet on the date of acquisition are shown below. Of the price difference, P7,000 is allocated to undervalued fixed assets and the balance to goodwill. Petron Consolidated 116,700 270,000 90,000 146,000 370,000 Current Assets Fixed Assets Investment in Shell Company Goodwill 8,100 ТОTAL 476,700 524,100 Current Liabilities 15,700 28,000 350,000 111,000 35,100 524,100 Share Capital 350,000 111,000 Share Premium NCI ТОТAL 476,700
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