22 what is the carrying value of equipment in the consolidated FS as of12/31/2020? P corporation, an SME, paid P3,000,000 for a 90% interest in S Company on January 1, 2019.The stockholders of S Company included share capital of P2,000,000 and retained earnings ofP1,000,000. Of the excess of total consideration (purchase price plus NCI) over book value,60% is attributable to undervalued inventories and the remainder to goodwilI. All inventoriesare sold in 2019. Also, on April 1, 2019, P sold an equipment to S for P300,000 (carrying valueis P250,000 with remaining life of 5 years). S's net income for the year is P522,500.

Consolidated financial statements are financial statements of an entity with multiple divisions or…

P čôrporátióñ, ân SME, paid for a 90% inte The stockholders of S Company included share capita P1,000,000. Of the excess of total consideration (purc 60% is attributable to undervalued inventories and th

P čôrporátióñ, ân SME, paid for a 90% inte The stockholders of S Company included share capita P1,000,000. Of the excess of total consideration (purc 60% is attributable to undervalued inventories and th

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

what is the carrying value of equipment in the consolidated FS as of
12/31/2020?

P corporation, an SME, paid P3,000,000 for a 90% interest in S Company on January 1, 2019.
The stockholders of S Company included share capital of P2,000,000 and retained earnings of
P1,000,000. Of the excess of total consideration (purchase price plus NCI) over book value,
60% is attributable to undervalued inventories and the remainder to goodwilI. All inventories
are sold in 2019. Also, on April 1, 2019, P sold an equipment to S for P300,000 (carrying value
is P250,000 with remaining life of 5 years). S's net income for the year is P522,500.

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