On January 01, 2018, P Company acquired 80% of the outstanding stock of S Company for P3,400,000. On the date of acquisition, the condensed statement of financial position of P Company and S Company are given as follows: S Company 1,830,000.00 2,760,000.00 300,000.00 P4,890,000.00 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 P Company 9,150,000.00 13,800,000.00 Current Assets Plant and Equipment Goodwill Total Assets Liabilities P22,950,000.00 5,700,000.00 12,000,000.00 3,900,000.00 1,350,000.00 P22,950,000.00 Ordinary Share Capital, 100 par Share Premium Retained Earnings Total Liabilities & SHE An appraisal made by an independent appraiser indicated that the fair value of S Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50,000 was paid. P Company elected to measure non-controlling interest proportionate to their share in identifiable net assets.
On January 01, 2018, P Company acquired 80% of the outstanding stock of S Company for P3,400,000. On the date of acquisition, the condensed statement of financial position of P Company and S Company are given as follows: S Company 1,830,000.00 2,760,000.00 300,000.00 P4,890,000.00 1,140,000.00 2,400,000.00 780,000.00 570,000.00 P4,890,000.00 P Company 9,150,000.00 13,800,000.00 Current Assets Plant and Equipment Goodwill Total Assets Liabilities P22,950,000.00 5,700,000.00 12,000,000.00 3,900,000.00 1,350,000.00 P22,950,000.00 Ordinary Share Capital, 100 par Share Premium Retained Earnings Total Liabilities & SHE An appraisal made by an independent appraiser indicated that the fair value of S Company's assets are P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination amounting to P50,000 was paid. P Company elected to measure non-controlling interest proportionate to their share in identifiable net assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. The amount of
2. On the date of acquisition, the NCI to appear in the consolidated
![On January 01, 2018, P Company acquired 80% of the outstanding stock of S Company for P3,400,000. On the
date of acquisition, the condensed statement of financial position of P Company and S Company are given as
follows:
P Company
9,150,000.00
13,800,000.00
S Company
1,830,000.00
2,760,000.00
Current Assets
Plant and Equipment
Goodwill
Total Assets
Liabilities
P22,950,000.00
5,700,000.00
300,000.00
P4,890,000.00
1,140,000.00
Ordinary Share Capital, 100 par
Share Premium
Retained Earnings
Total Liabilities & SHE
2,400,000.00
780,000.00
570,000.00
P4,890,000.00
12,000,000.00
3,900,000.00
1,350,000.00
P22,950,000.00
An appraisal made by an independent appraiser indicated that the fair value of S Company’s assets are
P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination
amounting to P50,000 was paid. P Company elected to measure non-controlling interest proportionate to their
share in identifiable net assets.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3614e99a-2e4e-479f-8e93-1a662cd0c7ef%2Fcd0bcef5-cc8a-4126-9c59-58c5d74fdf97%2Fj7cxyod_processed.png&w=3840&q=75)
Transcribed Image Text:On January 01, 2018, P Company acquired 80% of the outstanding stock of S Company for P3,400,000. On the
date of acquisition, the condensed statement of financial position of P Company and S Company are given as
follows:
P Company
9,150,000.00
13,800,000.00
S Company
1,830,000.00
2,760,000.00
Current Assets
Plant and Equipment
Goodwill
Total Assets
Liabilities
P22,950,000.00
5,700,000.00
300,000.00
P4,890,000.00
1,140,000.00
Ordinary Share Capital, 100 par
Share Premium
Retained Earnings
Total Liabilities & SHE
2,400,000.00
780,000.00
570,000.00
P4,890,000.00
12,000,000.00
3,900,000.00
1,350,000.00
P22,950,000.00
An appraisal made by an independent appraiser indicated that the fair value of S Company’s assets are
P1,890,000 for current assets and P2,900,000 for plant and equipment. Direct cost of business combination
amounting to P50,000 was paid. P Company elected to measure non-controlling interest proportionate to their
share in identifiable net assets.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education