Use the following information for the next 2 items: 2022 Formula One World Championship pre-season testing session just started and due to the porpoising safety issues of the Formula One cars of Mclaren Racing Limited, the price of its shares plummeted. This event gave Red Bull Racing Ltd. the opportunity to bugfy 45% of outstanding stocks of Mclaren Racing Ltd on March 5, 2022. It was noted that Red Bull Racing Ltd. owned 10% of the outstanding shares of Mclaren Racing Ltd amounting to P1,000,000 as of June 30, 2021 and accounted it as investment in equity securities through profit or loss. The following information showed the book value and fair values of Mclaren Racing Limited on March 5, 2022. Book Value Fair Value Total Assets 12,070,000 15,300,000 Total Liabilities 2,140,000 2,140,000

Use the following information for the next 2 items: 2022 Formula One World Championship pre-season testing session just started and due to the porpoising safety issues of the Formula One cars of Mclaren Racing Limited, the price of its shares plummeted. This event gave Red Bull Racing Ltd. the opportunity to bugfy 45% of outstanding stocks of Mclaren Racing Ltd on March 5, 2022. It was noted that Red Bull Racing Ltd. owned 10% of the outstanding shares of Mclaren Racing Ltd amounting to P1,000,000 as of June 30, 2021 and accounted it as investment in equity securities through profit or loss. The following information showed the book value and fair values of Mclaren Racing Limited on March 5, 2022. Book Value Fair Value Total Assets 12,070,000 15,300,000 Total Liabilities 2,140,000 2,140,000

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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