On January 1, 2021, PARKSOOYOUNG acquired all the outstanding shares of SUNGJAE for P600,000. The shareholders’ equity of SUNGJAE on this date amounted to P600,000. The net assets of SUNGJAE on this day were fairly valued except for inventories which were overstated by P50,000, equipment which was understated by P75,000, and building which was overstated by P125,000. Only half of the inventories were sold during 2021. The useful lives of the equipment and the building at the beginning of 2021 were 3 years and 5 years remaining, respectively. On December 31, 2021, the statements of financial position of PARKSOOYOUNG and SUNGJAE are as follows: How much is the consolidated total assets as of December 31, 2021? a. 4,250,000 b. 4,125,000 c. 4,275,000 d. 4,150,000
On January 1, 2021, PARKSOOYOUNG acquired all the outstanding shares of SUNGJAE for P600,000. The shareholders’ equity of SUNGJAE on this date amounted to P600,000. The net assets of SUNGJAE on this day were fairly valued except for inventories which were overstated by P50,000, equipment which was understated by P75,000, and building which was overstated by P125,000. Only half of the inventories were sold during 2021. The useful lives of the equipment and the building at the beginning of 2021 were 3 years and 5 years remaining, respectively. On December 31, 2021, the statements of financial position of PARKSOOYOUNG and SUNGJAE are as follows: How much is the consolidated total assets as of December 31, 2021? a. 4,250,000 b. 4,125,000 c. 4,275,000 d. 4,150,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 24E
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On January 1, 2021, PARKSOOYOUNG acquired all the outstanding shares of SUNGJAE for P600,000. The shareholders’ equity of SUNGJAE on this date amounted to P600,000. The net assets of SUNGJAE on this day were fairly valued except for inventories which were overstated by P50,000, equipment which was understated by P75,000, and building which was overstated by P125,000. Only half of the inventories were sold during 2021. The useful lives of the equipment and the building at the beginning of 2021 were 3 years and 5 years remaining, respectively. On December 31, 2021, the statements of financial position of PARKSOOYOUNG and SUNGJAE are as follows:
How much is the consolidated total assets as of December 31, 2021?
a. 4,250,000
b. 4,125,000
c. 4,275,000
d. 4,150,000
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