On January 1, 2020, West Corporation purchased 80% of the common stocks of FastCompany. Separate balance sheets for the companies at acquisition date are as follows:West CorpFast Co.FMVCashP 12,000P 119,000Accounts recei vable72,00013,000Inventory66,00019,00029,000230,000120,000140,000Plant assets, net(remalning life 5 years)Investment In Fast196.000Total assetsP 615,000P 271,000Accounts payableP103,00071,000Capital stock400,000150,000Retained earnings112,00050,000Total equitiesP 615,000P 271,00020. Goodwill (income) to be recorded by West Corp.oints21. Total assets on the consolidated balance sheetnts22. Non-controlling interest in net assets as of January, 2020

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20. Goodwill (income) to be recorded by West Corp. 21. Total assets on the consolidated balance sheet

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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