The ABC Company acquired 90% of the outstanding shares of XYZ Company, a foreign subsidiary, on September 10, 2022. The fair value of the assets of XYZ was the same as their carrying amount except for land whose the fair value was $50,000 greater than its carrying amount of $600,000. Consolidated financial statements are prepared at year-end December 31, 2022. The following rates of exchange have been identified: September 10, 2022 $1.62:P1 December 31, 2022 $1.56:P1 Average rate for the year ended December 31, 2022 $1.60:P1 Average rate for the year ended September 10 to December 31, 2022 $1.58:P1 Round off final answers to the nearest peso. How much is the land to be presented in the consolidated financial statements? Group of answer choices P411,392 P401,235 P406,250 P416,667
The ABC Company acquired 90% of the outstanding shares of XYZ Company, a foreign subsidiary, on September 10, 2022. The fair value of the assets of XYZ was the same as their carrying amount except for land whose the fair value was $50,000 greater than its carrying amount of $600,000. Consolidated financial statements are prepared at year-end December 31, 2022. The following rates of exchange have been identified: September 10, 2022 $1.62:P1 December 31, 2022 $1.56:P1 Average rate for the year ended December 31, 2022 $1.60:P1 Average rate for the year ended September 10 to December 31, 2022 $1.58:P1 Round off final answers to the nearest peso. How much is the land to be presented in the consolidated financial statements? Group of answer choices P411,392 P401,235 P406,250 P416,667
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 29E
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The ABC Company acquired 90% of the outstanding shares of XYZ Company, a foreign subsidiary, on September 10, 2022. The fair value of the assets of XYZ was the same as their carrying amount except for land whose the fair value was $50,000 greater than its carrying amount of $600,000. Consolidated financial statements are prepared at year-end December 31, 2022. The following rates of exchange have been identified:
|
September 10, 2022 |
$1.62:P1 |
|
December 31, 2022 |
$1.56:P1 |
|
Average rate for the year ended December 31, 2022 |
$1.60:P1 |
|
Average rate for the year ended September 10 to December 31, 2022 |
$1.58:P1 |
Round off final answers to the nearest peso.
How much is the land to be presented in the consolidated financial statements?
Group of answer choices
P411,392
P401,235
P406,250
P416,667
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