After the business combination on the basis of full-goodwill approach, what amount of stockholders' equity will be reported?a. P355,000b. P397,000c. P419,500d. P495,000 Power Corporation acquired 70 percent of Silk Corporation's common stock on December 31, 20x2. Balance sheet data for the twocompanies immediately following acquisition follow:ItemPowerSilk44,000110,000130,00080,000500,000(223,000)150,500P 791.500 P 405,00030,00045,00070,00025,000400,000(165,000)Accounts ReceivableInventoryLandBuildings and equipmentLess: Accumulated depreciationInvestmentin Silk Corporation stockTotalAssetsAccounts payableTaxes payableBonds payableCommonstock61,500 P 28,00095,000280,000150,000205,000P 791.50037,000200,00050,00090,000P 405,000Retained eamingsTotal Liabilities and Stockholders' EquityAfter 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.

Power Corporation Acquired 70% of Silk Corporation Dec31,20x2.

Answered: what amount of stockholders' equity…

Business

Accounting

what amount of stockholders' equity will be reported? a. P355,000 b. P397,000 c. P419,500 d. P495,000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

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