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Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.1C: Leverage Cook Corporation issued financial statements at December 31, 2019, that include the...
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Please Compute for the Current Assets and Non-current Assets.

ABC Company and XYZ Company reported the following condensed Statements of Financial Position on January 1, year 1. АВС Company XYZ Company 20,000 40,000 60,000 10,000 Current Assets 70,000 Noncurrent Assets 90,000 160.000 30,000 Total Assets Current Liabilities Long-term debt Stockholders' Equity Total Liabilities and stockholders' equity 50,000 80,000 160,000 50,000 60,000 On January 2, year 1, ABC borrowed P60,000 and used the proceeds to purchase 90% of the outstanding common shares of XYZ. This debt is payable in ten equal annual principal payments, plus interest, beginning December 30, year 1. The excess cost of the investment over XYZ's book value of acquired net assets should be allocated 60% to inventory and 40% to goodwill. On January 1, Year 1, the fair value of ABC shares held by noncantrolling parties was 10,000. On ABC's January 22, year 1 consolidated Statement of Financial Position, compute for the following required amounts?
Transcribed Image Text:ABC Company and XYZ Company reported the following condensed Statements of Financial Position on January 1, year 1. АВС Company XYZ Company 20,000 40,000 60,000 10,000 Current Assets 70,000 Noncurrent Assets 90,000 160.000 30,000 Total Assets Current Liabilities Long-term debt Stockholders' Equity Total Liabilities and stockholders' equity 50,000 80,000 160,000 50,000 60,000 On January 2, year 1, ABC borrowed P60,000 and used the proceeds to purchase 90% of the outstanding common shares of XYZ. This debt is payable in ten equal annual principal payments, plus interest, beginning December 30, year 1. The excess cost of the investment over XYZ's book value of acquired net assets should be allocated 60% to inventory and 40% to goodwill. On January 1, Year 1, the fair value of ABC shares held by noncantrolling parties was 10,000. On ABC's January 22, year 1 consolidated Statement of Financial Position, compute for the following required amounts?
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