Strings Corp. acquired 80% of Wind Corp.'s outstanding shares. The statements of financial position of both entities
immediately after the acquisition are shown below:
Strings Co. Wind Co.
Investment in subsidiary (at cost)....................430,000
Other assets .................................................. 1,570,000 ...............750,000
Assets ........................................................... 2,000,000 ...............750,000
Liabilities.........................................................750,000...............400,000
Ordinary share capital..................................1,000,000...............310,000
Retained earnings ............................................ 250,000 .................40,000
Liabilities and Stockholders' equity ............. 2,000,000 ...............750,000
At the date of purchase, the fair value of Wind's assets was P50,000 more than the aggregate carrying amounts. Noncontrolling interest is measured under the proportionate share method.
Requirements:
1. How much is the goodwill in the consolidated balance sheet prepared immediately after the acquisition?
2. In the consolidated balance sheet prepared immediately after the acquisition, the consolidated total assets should be?
3. In the consolidated balance sheet prepared immediately after the acquisition, the equity attributable to the owners of the parent should amount to:
4. In the consolidated balance sheet prepared immediately after the acquisition, the consolidated stockholders equity should amount to: