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IRON MAN CORP. acquired 80% of RUST CORP.'s outstanding shares. The statements of financial position of both entities immediately after the acquisition are shown below: RUST CORP. IRON MAN CORP. 430,000 1,570,000 2,000,000 Investment in subsidiary (at cost) Other assets 750,000 750,000 Assets Liabilities 750,000 1,000,000 250,000 2,000,000 400,000 310,000 40,000 750,000 Ordinary share capital Retained earnings Liabilities and Stockholders' equity At the date of purchase, the fair value of RUST's assets was P50,000 more than the aggregate carrying amounts. Non-controlling interest is measured under the proportionate share method. 8. How much is the goodwill in the consolidated balance sheet prepared immediately after the acquisition? А. C. 140,000 110,000 В. 120,000 In the consolidated balance sheet prepared immediately after the acquisition, the D. 160,000 9. consolidated total assets should amount to: A. 2,910,000 B. 2,480,000 C. 2,430,000 D. 2,370,000 10. In the consolidated balance sheet prepared immediately after the acquisition, the equity attributable to the owners of the parent should amount to: A. 1,200,000 C. 1,330,000 В. 1,260,000 D. 1,630,000 11. In the consolidated balance sheet prepared immediately after the acquisition, the consolidated stockholders' equity should amount to: C. D. А. В. 1,250,000 1,280,000 1,330,000 1,630,000

IRON MAN CORP. acquired 80% of RUST CORP.'s outstanding shares. The statements of financial position of both entities immediately after the acquisition are shown below: RUST CORP. IRON MAN CORP. 430,000 1,570,000 2,000,000 Investment in subsidiary (at cost) Other assets 750,000 750,000 Assets Liabilities 750,000 1,000,000 250,000 2,000,000 400,000 310,000 40,000 750,000 Ordinary share capital Retained earnings Liabilities and Stockholders' equity At the date of purchase, the fair value of RUST's assets was P50,000 more than the aggregate carrying amounts. Non-controlling interest is measured under the proportionate share method. 8. How much is the goodwill in the consolidated balance sheet prepared immediately after the acquisition? А. C. 140,000 110,000 В. 120,000 In the consolidated balance sheet prepared immediately after the acquisition, the D. 160,000 9. consolidated total assets should amount to: A. 2,910,000 B. 2,480,000 C. 2,430,000 D. 2,370,000 10. In the consolidated balance sheet prepared immediately after the acquisition, the equity attributable to the owners of the parent should amount to: A. 1,200,000 C. 1,330,000 В. 1,260,000 D. 1,630,000 11. In the consolidated balance sheet prepared immediately after the acquisition, the consolidated stockholders' equity should amount to: C. D. А. В. 1,250,000 1,280,000 1,330,000 1,630,000

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 30E
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Use the following information in answering the next item(s): IRON MAN CORP. acquired 80% of RUST CORP.'s outstanding shares. The statements of financial position of both entities immediately after the acquisition are shown below: IRON MAN CORP. 430,000 1,570,000 2,000,000 RUST CORP. Investment in subsidiary (at cost) 750,000 750,000 Other assets Assets Liabilities Ordinary share capital Retained earnings Liabilities and Stockholders' equity At the date of purchase, the fair value of RUST's assets was P50,000 more than the aggregate carrying amounts. Non-controlling interest is measured under the proportionate share method. 750,000 1,000,000 250,000 2,000,000 400,000 310,000 40,000 750,000 8. How much is the goodwill in the consolidated balance sheet prepared immediately after the acquisition? 110,000 120,000 С. 140,000 160,000 А. В. D. 9. In the consolidated balance sheet prepared immediately after the acquisition, the consolidated total assets should amount to: 2,910,000 2,480,000 C. 2,430,000 2,370,000 А. В. D. In the consolidated balance sheet prepared immediately after the acquisition, the equity should amount to: С. 10. attributable to the owners of the А. 1,200,000 1,330,000 В. 1,260,000 D. 1,630,000 11. In the consolidated balance sheet prepared immediately after the acquisition, the consolidated stockholders' equity should amount to: 1,250,000 1,280,000 C. 1,330,000 1,630,000 А. В. D.
Transcribed Image Text:Use the following information in answering the next item(s): IRON MAN CORP. acquired 80% of RUST CORP.'s outstanding shares. The statements of financial position of both entities immediately after the acquisition are shown below: IRON MAN CORP. 430,000 1,570,000 2,000,000 RUST CORP. Investment in subsidiary (at cost) 750,000 750,000 Other assets Assets Liabilities Ordinary share capital Retained earnings Liabilities and Stockholders' equity At the date of purchase, the fair value of RUST's assets was P50,000 more than the aggregate carrying amounts. Non-controlling interest is measured under the proportionate share method. 750,000 1,000,000 250,000 2,000,000 400,000 310,000 40,000 750,000 8. How much is the goodwill in the consolidated balance sheet prepared immediately after the acquisition? 110,000 120,000 С. 140,000 160,000 А. В. D. 9. In the consolidated balance sheet prepared immediately after the acquisition, the consolidated total assets should amount to: 2,910,000 2,480,000 C. 2,430,000 2,370,000 А. В. D. In the consolidated balance sheet prepared immediately after the acquisition, the equity should amount to: С. 10. attributable to the owners of the А. 1,200,000 1,330,000 В. 1,260,000 D. 1,630,000 11. In the consolidated balance sheet prepared immediately after the acquisition, the consolidated stockholders' equity should amount to: 1,250,000 1,280,000 C. 1,330,000 1,630,000 А. В. D.
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