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January 1, 2021 Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABC Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 ABC Co. 20,000 XYZ, Inc. 10,000 | Cash Accounts receivable 60,000 80,000 150,000 24,000 46,000 Inventory Investment in subsidiary Equipment Accumulated depreciation Total assets 400,000 100,000 (40,000) 670,000 (20,000) 160,000 Accounts payable Bonds payable Share capital 40,000 12,000 60,000 340,000 100,000 Share premium Retained earnings Total liabilities and equity 130,000 100,000 670,000 48,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Fair value Fair values 10,000 Carrying XYZ, Inc. increment amounts 10,000 24,000 Cash Accounts receivable 24,000 Inventory 46,000 62,000 16,000 Equipment Accumulated depreciation 100,000 120,000 20,000 (4,000) Accounts payable Net assets (20,000) (24,000) (12,000) (12,000) 148,000 180,000 32,000 The equipment has a remaining useful life as of 4 years from January 1, 2021. ABC Co. elects to measure non-controlling interest as its proportionate share in XYZ's net identifiable assets. Compute for the consolidated asset.

January 1, 2021 Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABC Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 ABC Co. 20,000 XYZ, Inc. 10,000 | Cash Accounts receivable 60,000 80,000 150,000 24,000 46,000 Inventory Investment in subsidiary Equipment Accumulated depreciation Total assets 400,000 100,000 (40,000) 670,000 (20,000) 160,000 Accounts payable Bonds payable Share capital 40,000 12,000 60,000 340,000 100,000 Share premium Retained earnings Total liabilities and equity 130,000 100,000 670,000 48,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Fair value Fair values 10,000 Carrying XYZ, Inc. increment amounts 10,000 24,000 Cash Accounts receivable 24,000 Inventory 46,000 62,000 16,000 Equipment Accumulated depreciation 100,000 120,000 20,000 (4,000) Accounts payable Net assets (20,000) (24,000) (12,000) (12,000) 148,000 180,000 32,000 The equipment has a remaining useful life as of 4 years from January 1, 2021. ABC Co. elects to measure non-controlling interest as its proportionate share in XYZ's net identifiable assets. Compute for the consolidated asset.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 20E
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On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABC Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 ABC Co. XYZ, Inc. Cash 20,000 10,000 Accounts receivable 60,000 24,000 80,000 Inventory Investment in subsidiary Equipment Accumulated depreciation Total assets 46,000 150,000 400,000 (40,000) 670,000 100,000 (20,000) 160,000 Accounts payable 40,000 60,000 12,000 Bonds payable Share capital 340,000 130,000 100,000 Share premium Retained earnings Total liabilities and equity 100,000 48,000 670,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Carrying Fair value increment Fair XYZ, Inc. values атounts 10,000 Cash 10,000 Accounts receivable 24,000 24,000 Inventory 46,000 62,000 16,000 Equipment 100,000 120,000 (24,000) 20,000 (4,000) (20,000) Accumulated depreciation Accounts payable Net assets (12,000) (12,000) 148,000 180,000 32,000 The equipment has a remaining useful life as of 4 years from January 1, 2021. ABC Co. elects to measure non-controlling interest as its proportionate share in XYZ's net identifiable assets. Compute for the consolidated asset.
Transcribed Image Text:On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABC Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 ABC Co. XYZ, Inc. Cash 20,000 10,000 Accounts receivable 60,000 24,000 80,000 Inventory Investment in subsidiary Equipment Accumulated depreciation Total assets 46,000 150,000 400,000 (40,000) 670,000 100,000 (20,000) 160,000 Accounts payable 40,000 60,000 12,000 Bonds payable Share capital 340,000 130,000 100,000 Share premium Retained earnings Total liabilities and equity 100,000 48,000 670,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Carrying Fair value increment Fair XYZ, Inc. values атounts 10,000 Cash 10,000 Accounts receivable 24,000 24,000 Inventory 46,000 62,000 16,000 Equipment 100,000 120,000 (24,000) 20,000 (4,000) (20,000) Accumulated depreciation Accounts payable Net assets (12,000) (12,000) 148,000 180,000 32,000 The equipment has a remaining useful life as of 4 years from January 1, 2021. ABC Co. elects to measure non-controlling interest as its proportionate share in XYZ's net identifiable assets. Compute for the consolidated asset.
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