7. What amount of consolidated retained earnings will be reported? A.P 295,000 C. P 232,000B. P 268,000 D. P 205,0008. What amount of stockholders; equity will be reported?A. P 355,000 C. P 419,500B. P 397,000 Silk30,00045,000ItemPower44,000CashPPAccounts Receivable110,000Inventory130,00070,00080,000500,000Land25,000400,000Buildings and equipmentLess: Accumulated depreciationInvestment in Silk Corporation stockUNIT(223,000)150,500P 791,500(165,000)Total AssetsP 405,000Accounts payableTaxes payableBonds payable61,50095,000280,00028,00037,000200,00050,00090,000Common stock150,000Retained earningsTotal Liabilities and Stockholders’ Equity205,000P 791,500P 405,000After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fairvalue except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45, 000. The fairvalue of the non-controlling interest was P64,500 on December 31, 20x2.For each of the question below, indicate the appropriate total that should appear in the consolidated balance sheetimmediately after the business combination on the basis of full-goodwill approach:

Consolidated preserved earnings could be an element of shareholders' equity on a consolidated record…

Silk 30,000 Item Power 44,000 P Cash P Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 500,000 25,000 Buildings and equipment Less: Accumulated depreciation Investment in Silk Corporation stock UNIV 400,000 (223,000) 150,500 P 791,500 (165,000) Total Assets P 405,000 P 61,500 95,000 Accounts payable Taxes payable Bonds payable Common stock 28,000 37,000 280,000 200,000 50,000 90,000 P 405,000 150,000 Retained earnings Total Liabilities and Stockholders’ Equity 205,000 P 791,500 After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fair value except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45, 000. The fair value of the non-controlling interest was P64,500 on December 31, 20x2. For each of the question below, indicate the appropriate total that should appear in the consolidated balance sheet immediately after the business combination on the basis of full-goodwill approach:

Silk 30,000 Item Power 44,000 P Cash P Accounts Receivable 110,000 45,000 Inventory 130,000 70,000 Land 80,000 500,000 25,000 Buildings and equipment Less: Accumulated depreciation Investment in Silk Corporation stock UNIV 400,000 (223,000) 150,500 P 791,500 (165,000) Total Assets P 405,000 P 61,500 95,000 Accounts payable Taxes payable Bonds payable Common stock 28,000 37,000 280,000 200,000 50,000 90,000 P 405,000 150,000 Retained earnings Total Liabilities and Stockholders’ Equity 205,000 P 791,500 After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fair value except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45, 000. The fair value of the non-controlling interest was P64,500 on December 31, 20x2. For each of the question below, indicate the appropriate total that should appear in the consolidated balance sheet immediately after the business combination on the basis of full-goodwill approach:

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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