Mother Company purchased the net assets of Subsidiary Company on July 1, 2019 for a consideration transfer of P32,000,000. The carrying value of Subsidiary's net assets at the purchase date was P20,000,000, with a temporary appraisal of P28,000,000 assigned to the net assets. The net assets had a preliminary fair value of P26,000,000 as of December 31, 2019. An additional valuation obtained on March 31, 2020 raised this provisional fair value by P2,000,000, and this fair value was confirmed on June 1, 2020, with a drop of P4,000,000 from the previous valuation date. What should the surviving firm include in its separate statement of financial situation as of December 31, 2020
Mother Company purchased the net assets of Subsidiary Company on July 1, 2019 for a consideration transfer of P32,000,000. The carrying value of Subsidiary's net assets at the purchase date was P20,000,000, with a temporary appraisal of P28,000,000 assigned to the net assets. The net assets had a preliminary fair value of P26,000,000 as of December 31, 2019. An additional valuation obtained on March 31, 2020 raised this provisional fair value by P2,000,000, and this fair value was confirmed on June 1, 2020, with a drop of P4,000,000 from the previous valuation date. What should the surviving firm include in its separate statement of financial situation as of December 31, 2020
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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Mother Company purchased the net assets of Subsidiary Company on July 1, 2019 for a consideration transfer of P32,000,000. The carrying value of Subsidiary's net assets at the purchase date was P20,000,000, with a temporary appraisal of P28,000,000 assigned to the net assets. The net assets had a preliminary fair value of P26,000,000 as of December 31, 2019. An additional valuation obtained on March 31, 2020 raised this provisional fair value by P2,000,000, and this fair value was confirmed on June 1, 2020, with a drop of P4,000,000 from the previous valuation date. What should the surviving firm include in its separate statement of financial situation as of December 31, 2020?
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