Vanilluxe Corporation acquired an 80% interest in Escavalier Company on January 1, 2019 for P1,225,000. On this date, a land with a carrying amount of P1,000,000 had a fair value of P1,050,000 and the capital stock and retained earnings of the two companies were as follows: The assets and liabilities of Escavalier were stated at their fair values when Vanilluxe acquired its 80% interest and the proportionate share in net identifiable assets was used to initially measure the non-controlling interest. Vanilluxe uses the cost method to account for its investment in Escavalier. The consolidated shareholders' equity at December 31, 2019: Capital stock Retained earnings Vanilluxe P3,150,000 1,400,000 Escavalier P875,000 175,000 Net income and dividends for 2019 for the affiliated companies were: Escavalier P157,500 Vanilluxe P525,000 315,000 Dividends payable December 31, 2019, 157,500 Net income Dividends declared P4,846,000 Answer not given O P5,201,000

Vanilluxe Corporation acquired an 80% interest in Escavalier Company on January 1, 2019 for P1,225,000. On this date, a land with a carrying amount of P1,000,000 had a fair value of P1,050,000 and the capital stock and retained earnings of the two companies were as follows: The assets and liabilities of Escavalier were stated at their fair values when Vanilluxe acquired its 80% interest and the proportionate share in net identifiable assets was used to initially measure the non-controlling interest. Vanilluxe uses the cost method to account for its investment in Escavalier. The consolidated shareholders' equity at December 31, 2019: Capital stock Retained earnings Vanilluxe P3,150,000 1,400,000 Escavalier P875,000 175,000 Net income and dividends for 2019 for the affiliated companies were: Escavalier P157,500 Vanilluxe P525,000 315,000 Dividends payable December 31, 2019, 157,500 Net income Dividends declared P4,846,000 Answer not given O P5,201,000

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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