ABC and XYZ establish a joint arrangement using a separate vehicle. The legal form of the separate vehicle does not confer separation between the parties and the separate vehicle. The contractual terms of the joint arrangement provide for the following: ABC has rights to all of the equipment of the separate vehicle XYZ shall have 60% rights to the building of the separate vehicle ABC has the obligation to the accounts payable of the separate vehicle The other items are shared by the parties on a 50:50 ratioThe separate vehicle provided the following statement of financial position: Assets Liabilities and Equity Cash P 500,000 Accounts payable P1,800,000 Building – net 3,000,000 Notes payable 1,500,000 Equipment – net 2,000,000 Equity 2,200,000 Total P5,500,000 Total P5,500,000 How much of the total assets of the separate vehicle would be presented in the separate statement of financial position of ABC?

ABC and XYZ establish a joint arrangement using a separate vehicle. The legal form of the separate vehicle does not confer separation between the parties and the separate vehicle. The contractual...

ABC and XYZ establish a joint arrangement using a separate vehicle. The legal form of the separate vehicle does not confer separation between the parties and the separate vehicle. The contractual terms of the joint arrangement provide for the following:

ABC has rights to all of the equipment of the separate vehicle

XYZ shall have 60% rights to the building of the separate vehicle

ABC has the obligation to the accounts payable of the separate vehicle

The other items are shared by the parties on a 50:50 ratio

The separate vehicle provided the following statement of financial position:

Assets		Liabilities and Equity
Cash	P 500,000		Accounts payable	P1,800,000
Building – net	3,000,000		Notes payable	1,500,000
Equipment – net	2,000,000		Equity	2,200,000
Total	P5,500,000		Total	P5,500,000

How much of the total assets of the separate vehicle would be presented in the separate statement of financial position of ABC?

Jun 10, 2022

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ABC and XYZ establish a joint arrangement using a separate vehicle. The legal form of the separate vehicle does not confer separation between the parties and the separate vehicle. The contractual...

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