What amount of stockholder's equity will be reported? Power Corporation acquired 70 percent of Silk Corporation's common stock onDecember 31, 20x2. Balance sheet data for the two companies immediatelyfollowing acquisition follow:ItemPowerSilk30,00045,000CashP44,000110,000PAccounts ReceivableInventory130,00080,000500,000(223,000)150,500791,50070,00025,000400,000LandBuildings and equipmentLess: Accumulated depreciationInvestment in Silk Corporation stock(165,000)Total AssetsP405,00061,500Accounts payableTaxes payableBonds payable28,00037,000200,00095,000280,000150,000205,000791,500Common stockRetained earningsTotal Liabilities and Stockholders' Equity P50,00090,000405,000After the date of the business combination, the book value of Silk's net assetsand liabilities approximated their fair value except for inventory, which had afair value of P85,000, and land, which had a fair value of P45, 000. The fair valueof the non-controlling interest was P64,500 on December 31, 20x2.For each of the question below, indicate the appropriate total that should appearin the consolidated balance sheet immediately after the business combinationon the basis of full-goodwill approach:

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Description: What amount of stockholder's equity will be reported? Power Corporation acquired 70 percent of Silk Corporation's common stock onDecember 31, 20x2. Balance sheet data for the two companies immediatelyfollowing acquisition follow:ItemPowerSilk30,00045

Power corporation acquired Silk corporation common stock = 70% It means the power corporation…

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Accounting

What amount of stockholder's equity will be reported?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 23PC

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