Parent Subsidiary Company P 37,400 Assets Company P' 36,900 34,200 22,900 179,000 Cash Accounts receivable, net 9,100 Inventories 16,100 Equipment, net Patents 40,000 10,000 Total Assets P 267,000 P112,600 Liabilities and Equities Accounts Payable Bonds Payable Commonstock, P10 par Share Premium P 4,000 P 6,600 100,000 100,000 50,000 15,000 15,000 Retainedeamings Total Liabilities and Equities 41,000 P112,600 48,000 P 267,000 At the date of acquisition, all assets and liabilities of Subsidiary Company have book value approximately equal to their respective market values except the following as determined by appraisalas follows:
Parent Subsidiary Company P 37,400 Assets Company P' 36,900 34,200 22,900 179,000 Cash Accounts receivable, net 9,100 Inventories 16,100 Equipment, net Patents 40,000 10,000 Total Assets P 267,000 P112,600 Liabilities and Equities Accounts Payable Bonds Payable Commonstock, P10 par Share Premium P 4,000 P 6,600 100,000 100,000 50,000 15,000 15,000 Retainedeamings Total Liabilities and Equities 41,000 P112,600 48,000 P 267,000 At the date of acquisition, all assets and liabilities of Subsidiary Company have book value approximately equal to their respective market values except the following as determined by appraisalas follows:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Using the proportionate basis or partial
A. P 48,000 C. P 84,900
B. P52,100 D. P 89,000
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