What is the consolidated asset after acquisition AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensedStatement of Financial Position before the combination show:ВBB Cогp.88,000420,0001,119,6001,040,000260,000171,600AAA Inc.CashAccounts Receivable, netInventoryProperty Plant and Equipment88,000500,0001,700,0004,654,000PatentAccounts PayableMortgage PayableCapital Stock, par P100Share PremiumRetained Earnings1,000,0001,704,0002,600,000390,0001,248,0001,300,000390,0001,066,000As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plantand equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA purchases BBB's net asset for P4,000,000.Compute for the consolidated asset after acquisition.Your answer

Goodwill: It is an intangible asset that is related with the purchase of one company by another

AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed Statement of Financial Position before the combination show: AAA Inc. ВBB Coгp. Cash 88,000 88,000 Accounts Receivable, net 500,000 420,000 1,700,000 4,654,000 1,119,600 1,040,000 260,000 171,600 Inventory Property Plant and Equipment Patent Accounts Payable 1,000,000

AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed Statement of Financial Position before the combination show: AAA Inc. ВBB Coгp. Cash 88,000 88,000 Accounts Receivable, net 500,000 420,000 1,700,000 4,654,000 1,119,600 1,040,000 260,000 171,600 Inventory Property Plant and Equipment Patent Accounts Payable 1,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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