On January 2, 2021, the Statement of Financial Position of Parent and Subsidiary Company prior to the combination are:Parent Co.Subsidiary Co.CashP 450,000P 15,000Inventories300,00030,000Property and equipment (net)750,000105,000Total AssetsP 1,500,000P 150,000Current LiabilitiesP 90,000P 15,000Common Stock, P100 par150,00015,000Additional Paid in Capital450,00030,000Retained Earnings810,00090,000Total Liabilities and Stockholders' EquityP 1,500,000P 150,000The fair value of Subsidiary Company's equipment is P153,000.Assuming Parent Company acquired 80% of the outstanding common stock of Subsidiary Company for P136,800 and NCI is measured at its proportionate share ofsubsidiary's net assets, how much is the consolidated stockholder's equity on the date of acquisition?

Consolidated Shareholder's Equity- Consolidated Shareholders’ Equity means the sum of Assets of the…

On January 2, 2021, the Statement of Financial Position of Parent and Subsidiary Company prior to the combination are: Parent Co. Subsidiary Co. Cash P 450,000 P 15,000 Inventories 300,000 30,000 Property and equipment (net) 750,000 105,000 Total Assets P1,500,000 P 150,000

On January 2, 2021, the Statement of Financial Position of Parent and Subsidiary Company prior to the combination are: Parent Co. Subsidiary Co. Cash P 450,000 P 15,000 Inventories 300,000 30,000 Property and equipment (net) 750,000 105,000 Total Assets P1,500,000 P 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 29E

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