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. 88,000 500,000 1,700,000 4,654,000 BBB Corp. Cash Accounts Receivable, net Inventory Property Plant and Equipment Patent Accounts Payable Mortgage Payable Capital Stock, par P100 Share Premium Retained Earnings 88,000 420,000 1,119,600 1,040,000 260,000 1,000,000 1,704,000 2,600,000 390,000 1,248,000 171,600 1,300,000 390,000 1,066,000 As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant and 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.

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. 88,000 500,000 1,700,000 4,654,000 BBB Corp. Cash Accounts Receivable, net Inventory Property Plant and Equipment Patent Accounts Payable Mortgage Payable Capital Stock, par P100 Share Premium Retained Earnings 88,000 420,000 1,119,600 1,040,000 260,000 1,000,000 1,704,000 2,600,000 390,000 1,248,000 171,600 1,300,000 390,000 1,066,000 As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant and 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.

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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