9. RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1, for P280,000. RR’s balance sheet immediately after the combination contained the following balances: (see image 1) DD’s balance sheet at acquisition contained the following balances: (see image 2) On the date of combination, the inventory held by DD had a fair value of P170,000, and its buildings and recording equipment had a value of P375, 000. Goodwill reported by DD resulted from a purchase of SS Enterprises in 20x1. SS was liquidated and its assets and liabilities were brought onto DD’s books. Compute the balance of Inventory to be reported in the consolidated balance sheet immediately after the acquisition.
10. Using the same information in #9, compute the balance of Buildings and Equipment, net to be reported in the consolidated balance sheet immediately after the acquisition.
11.Using the same information in #9, compute the balance of Investment in DD Stock to be reported in the consolidated balance sheet immediately after the acquisition
Extracted text: Image 1 RR Records, Inc. Balance Sheet January 1, 20x4 P120,000 Accounts Payable 110,000 Taxes Payable 70,000 Notes Payable 350,000 280,000 Retained Earnings P930.000 P 75,000 50,000 Cash and Receivables . Inventory.. Land. Buildings and Equipment (net). Investment in DD stock.. 300,000 400,000 Common Stock. 105,000 P930.000 Image 2+ DD Studios Balance Sheet January 1, 20x4 P 40,000 Accounts Payable 180,000 Notes Payable. 350,000 Common Stock. 30,000 Additional Paid- in Capital .. P 90,000 250,000 Cash and Receivables. Inventory .. Buildings and Equipment (net). Goodwill . 100,000 200,000 (40,000) Retained Earnings. P600.000 P600.000