On January 1, 20x4, Park Corporation and Strand Corporation and their condensed balances sheet are as follows: Particulars Park Corp Strand Corp Current Assets P70,000 P20,000 Non-current assets 90,000 40,000 Total assets P160,000 P60,000 Current liabilities P30,000 P10,000 Long-term debt 50,000 -- Stockholder’s equity 80,000 50,000 Total liabilities and equity P160,000 P60,000 On January 2, 20x4, Park Corporation borrowed P60,000 and used the proceeds to obtain 80% of the outstanding common shares of Strand Corporation. The P60,000 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31, 20x4. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60%) and goodwill (40%). On a consolidated balance sheet as of January 2, 20x4, what should be the amount for each of the following? Non-Current Liabilities Stockholders' Equity using NCI proportionate value Stockholders' equity using NCI at full fair value
Debenture Valuation
A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.
Note Valuation
It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:
On January 1, 20x4, Park Corporation and Strand Corporation and their condensed balances sheet are as follows:
Particulars Park Corp Strand Corp
Current Assets P70,000 P20,000
Non-current assets 90,000 40,000
Total assets P160,000 P60,000
Current liabilities P30,000 P10,000
Long-term debt 50,000 --
Total liabilities and equity P160,000 P60,000
On January 2, 20x4, Park Corporation borrowed P60,000 and used the proceeds to obtain 80% of the outstanding common shares of Strand Corporation. The P60,000 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31, 20x4. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60%) and
On a consolidated balance sheet as of January 2, 20x4, what should be the amount for each of the following?
Non-Current Liabilities
Stockholders' Equity using NCI proportionate value
Stockholders' equity using NCI at full fair value
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