ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and immediately prepares a consolidated balance sheet. ABC also pays P12,000 in accounting and legal fees...


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ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and immediately<br>prepares a consolidated balance sheet. ABC also pays P12,000 in accounting and legal fees to accomplish the<br>purchase. The separate balance sheets of the two companies immediately prepared before the consolidation with<br>acquiree's fair value were presented as follows:<br>ABC, Carrying value<br>350,000<br>75,000<br>100,000<br>DEF, Carrying value<br>50,000<br>50,000<br>60,000<br>DEF, Fair value<br>50,000<br>50,000<br>75,000<br>Cash<br>Accounts Receivable<br>Inventory<br>Land<br>Building and Equipment, net<br>Accounts Payable<br>Bonds Payable<br>Common stock, P10 par<br>Share Premium<br>Retained Earnings<br>175,000<br>400,000<br>100,000<br>200,000<br>500,000<br>50,000<br>40,000<br>300,000<br>100,000<br>100,000<br>200,000<br>100,000<br>290,000<br>100,000<br>135,000<br>20,000<br>250,000<br>80,000<br>Compute for the Consolidated Total Asset.<br>

Extracted text: ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and immediately prepares a consolidated balance sheet. ABC also pays P12,000 in accounting and legal fees to accomplish the purchase. The separate balance sheets of the two companies immediately prepared before the consolidation with acquiree's fair value were presented as follows: ABC, Carrying value 350,000 75,000 100,000 DEF, Carrying value 50,000 50,000 60,000 DEF, Fair value 50,000 50,000 75,000 Cash Accounts Receivable Inventory Land Building and Equipment, net Accounts Payable Bonds Payable Common stock, P10 par Share Premium Retained Earnings 175,000 400,000 100,000 200,000 500,000 50,000 40,000 300,000 100,000 100,000 200,000 100,000 290,000 100,000 135,000 20,000 250,000 80,000 Compute for the Consolidated Total Asset.

Jun 11, 2022
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