9. The condensed statement of financialposition of Philippines Corporation andScotland Company as of October 4,2022 are presented below:PhilippinesCorp.Scotland Co.Assets3,800,000850,000Liabilities1,350,000250,000Ordinary shares, P100 par500,000Retained earnings1,500,000950,000100,000Total3,800,000850,000On October 4 ,2022, PhilippinesCorporation acquired 4,000 shares ofScotland Company at P560,000. Themarket price of the 1,000 shares ofScotland on October 4, 2022 is P140 pershare.In the consolidated statement offinancial position on October 4,2022, total assets will be:

4000 shares are acquired out of 5000 % acquired =80%, holding subsidiary relationship exists

Answered: Scotland on October 4, 2022 is P140 per…

Scotland on October 4, 2022 is P140 per share. In the consolidated statement of financial position on October 4, 2022, total assets will be:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 4MC

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