How much is the consolidated total assets on January 1, 20x1? * LIse the following information for the next two questions:On January 1, 20x1, Entity A acquires Entity Bin a business combination. The financial statements ofthe combining constituents are shown below:EntityEntityABCash in bank6,00014,40027,60012,000Accounts receivable36,00048,000InventoryInvestment in90,000subsidiaryBuilding, netTotal assets216,00048,00096,000402,000Accounts payableShare capitalShare premiumRetained earningsTotal liabilities and equity60,0007,20060,000204,00078,00060,000402,00028,80096,000Additional information:• Entity B's assets and liabilities are stated at their acquisition-date fair values, except for thefollowingInventory, P37,200Building, net, P57,600The goodwill determined under PFRS 3 is P3,600.The NCI in the net assets of the subsidiary, also determined under PFRS 3, is P21,600.

It is pertinent to note that as per PFRS 3 in a business combination all the identifiable net assets…

Use the follouing information for the next two questions: On January 1, 20x1, Entity A acquires Entity B in a business combination. The financial statements of the combining constituents are shown below: Entity Entity B Cash in bank Accounts receivable Inventory Investment in 12,000 6,000 36,000 48,000 14,400 27,600 90,000 subsidiary Building net Total assets 216,000 48,000 402.000 96.000 Accounts payable Share capital Share premium Retained earrings Total liabilities and eguity 402,000 96,000 7,200 204,000 60,000 78,000 60,000 60,000 25,800 Adäitional information: Entity B's assets and liabilities are stated at their acquisition-date fair values, except for the following Inventory, P37,200 Building, net, P57,600 The goodwill determined under PFRS 3 is P3,600. The NCI in the net assets of the subsidiary, also determined under PFRS 3, is 921,600.

Use the follouing information for the next two questions: On January 1, 20x1, Entity A acquires Entity B in a business combination. The financial statements of the combining constituents are shown below: Entity Entity B Cash in bank Accounts receivable Inventory Investment in 12,000 6,000 36,000 48,000 14,400 27,600 90,000 subsidiary Building net Total assets 216,000 48,000 402.000 96.000 Accounts payable Share capital Share premium Retained earrings Total liabilities and eguity 402,000 96,000 7,200 204,000 60,000 78,000 60,000 60,000 25,800 Adäitional information: Entity B's assets and liabilities are stated at their acquisition-date fair values, except for the following Inventory, P37,200 Building, net, P57,600 The goodwill determined under PFRS 3 is P3,600. The NCI in the net assets of the subsidiary, also determined under PFRS 3, is 921,600.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 28E

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