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AB CO paid CU3,000,000,000 for 80% ownership of XY CO on January 1 19X8. The book value and fair value of XY CO's net assets are as follows:   Current assets Clean Equipment Fixed Assets-Net Liabilities Net Assets BOOK VALUE CU1.000.000.000 2.000.000.000 1.000.000.000 (1.500.000.000) Rp 2.500.000.000 FAIR VALUE CU1.500.000.000 3.000.000.000 Rp 1.000.000.000 (1.500.000.000) Rp 4.000.000.000 Requested: Prepare a list for allocating the cost differential / Book value to net assets XY CO

AB CO paid CU3,000,000,000 for 80% ownership of XY CO on January 1 19X8. The book value and fair value of XY CO's net assets are as follows:   Current assets Clean Equipment Fixed Assets-Net Liabilities Net Assets BOOK VALUE CU1.000.000.000 2.000.000.000 1.000.000.000 (1.500.000.000) Rp 2.500.000.000 FAIR VALUE CU1.500.000.000 3.000.000.000 Rp 1.000.000.000 (1.500.000.000) Rp 4.000.000.000 Requested: Prepare a list for allocating the cost differential / Book value to net assets XY CO

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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AB CO paid CU3,000,000,000 for 80% ownership of XY CO on January 1 19X8. The book value and fair value of XY CO's net assets are as follows:

 

Current assets
Clean Equipment
Fixed Assets-Net
Liabilities
Net Assets

BOOK VALUE

CU1.000.000.000
2.000.000.000
1.000.000.000
(1.500.000.000)
Rp 2.500.000.000

FAIR VALUE

CU1.500.000.000
3.000.000.000
Rp 1.000.000.000
(1.500.000.000)
Rp 4.000.000.000

Requested:

Prepare a list for allocating the cost differential / Book value to net assets XY CO

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