On January 1, 2015, FOREVERALONE Corporation reported total assets of P 470,000, liabilities of P 270,000 and stockholders’ equity of P 200,000. At that date, PEANUTBITTER Corporation reported total assets of P 190,000, liabilities of P 135,000, and stockholders’ equity of P 55,000. Following lengthy negotiations, FOREVERALONE paid PEANUTBITTER’s existing shareholders P 55,000 in cash for 100 percent of the voting common shares of PEANUTBITTER. Immediately after FOREVERALONE purchased PEANUTBITTER shares: a. What amount of total assets did FOREVERALONE report in its balance sheet? b. What amount of total assets was reported in the consolidated balance sheet? c. What amount of total liabilities was reported in the consolidated balance sheet?
On January 1, 2015, FOREVERALONE Corporation reported total assets of P 470,000, liabilities of P 270,000 and
liabilities of P 135,000, and stockholders’ equity of P 55,000. Following lengthy negotiations, FOREVERALONE paid
PEANUTBITTER’s existing shareholders P 55,000 in cash for 100 percent of the voting common shares of
PEANUTBITTER.
Immediately after FOREVERALONE purchased PEANUTBITTER shares:
a. What amount of total assets did FOREVERALONE report in its
b. What amount of total assets was reported in the consolidated balance sheet?
c. What amount of total liabilities was reported in the consolidated balance sheet?
d. What amount of stockholders’ equity was reported in the consolidated balance sheet?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
