Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the following book and market values: (see information below) What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination? Book value Market value Cash and Receivables 90,000 90,000 Inventory 100,000 100,000 Plant assets (net) 220,000 300,000 Current liabilities (45,000) (45,000) Long-term debt (114,000) (114,000) Common stock (10,000) Retained earnings (170,000)
Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the following book and market values: (see information below) What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination? Book value Market value Cash and Receivables 90,000 90,000 Inventory 100,000 100,000 Plant assets (net) 220,000 300,000 Current liabilities (45,000) (45,000) Long-term debt (114,000) (114,000) Common stock (10,000) Retained earnings (170,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Amazon acquired 100 percent of Ferries for P275,000. At the date of acquisition, Ferries had the following book and market values: (see information below) What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?
| Book value | Market value | |
| Cash and Receivables | 90,000 | 90,000 |
| Inventory | 100,000 | 100,000 |
| Plant assets (net) | 220,000 | 300,000 |
| Current liabilities | (45,000) | (45,000) |
| Long-term debt | (114,000) | (114,000) |
| Common stock | (10,000) | |
| (170,000) |
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