Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary: 1) Current Assets 2) Land 3) Building and Equipment 4) Goodwill 5) Investment in Sidney Corporation 6) Ordinary shares 7) Retained earnings 8) Minority interest 9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock market at P 20/share.
Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary: 1) Current Assets 2) Land 3) Building and Equipment 4) Goodwill 5) Investment in Sidney Corporation 6) Ordinary shares 7) Retained earnings 8) Minority interest 9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock market at P 20/share.
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 34P
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Question
Determine the following asset balances that would appear in the consolidated financial statements of Portland and its 80% owned subsidiary:
1) Current Assets
2) Land
3) Building and Equipment
4)
5) Investment in Sidney Corporation
6) Ordinary shares
7)
8) Minority interest
9) Goodwill and minority interest assuming that Sydney’s shares are traded in the stock market
at P 20/share.
Transcribed Image Text:Portland Corporation purchased 80% of the voting common stock of Sidney Corporation for P2,760,000
cash on January 2, 2020. On this date, before combination, the book value and fair value of Portland and
Sidney were as follows:
Portland Corporation
Book value
P 3,000,000
800,000
1,100,000
900,000
3,100,000
6,000,000
3,500,000
P18,400,000
400,000
1,500,000
Sidney Corporation
Fair value
60,000
200,000
500,000
200,000
600,000
1,800,000
600,000
P3,960,000
200,000
560,000
Fair value
Book value
P 3,000,000
800,000
1,200,000
900,000
4,000,000
8,000,000
4,500,000
P22,400,000
400,000
1,600,000
Cash
Receivables - net
60,000
200,000
400,000
150,000
500,000
1,000,000
800,000
P3,110,000
200,000
610,000
2,000,000
300,000
P3,110,000
P
P
Inventories
Other current assets
Land
Buildings - net
Equipment - net
Accounts payable
Other liabilities
Share capital, P10 P15,000,000
Retained earnings
1,500,000
P18,400,000
Determine the following asset balances that would appear in the consolidated financial statements
of Portland and its 80% owned subsidiary:
Current Assets
1)
2)
3)
Land
Building and Equipment
Goodwill
4)
Investment in Sidney Corporation
5)
6)
Ordinary shares
7)
Retained earnings
8)
Minority interest
9)
Goodwill and minority interest assuming that Sydney's shares are traded in the stock market
at P 20/share.
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