Parent purchases the net assets of Sub for P3,168,000. What is the total assets of Parent after the combination?A. 7,254,000B. 9,181,600C. 8,113,600D. 7,354,000 Parent Corporation was merged into Sub Company in a combination properly accounted for as anacquisition. Their condensed statement of financial position before the combination are as follows:Parent3,288,0004,654,000Sub1,627,600Current assetsProperty and equipment1,040,000260,000PatentsTotal assets7,942,0002,927,600Liabilities3,704,000171,600Ordinary share, P100 parShare premiumRetained earningsTotal liabilities and equity2,600,0001,300,000350,000390,0001,248,0001,106,0002,927,6007,942,000Per appraisal's report, Sub's assets have fair values of:Current assets1,653,6001,248,000Property and equipmentPatents338,000

Answered: Parent purchases the net assets of Sub…

Parent purchases the net assets of Sub for P3,168,000. What is the total assets of Parent after the combination? A. 7,254,000 B. 9,181,600 C. 8,113,600 D. 7,354,000

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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AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acq uisition of interest. Their condensed Statement of Financial Position before the combination show: ВBB Cогр. 88,000 420,000 1,119,600 1,040,000 260,000 171,600 AAA Inc. Cash Accounts Receivable, net Inventory Property Plant and Equipment Patent Accounts Payable Mortgage Payable Capital Stock, par P100 Share Premium Retained Earnings 88,000 500,000 1,700,000 4,654,000 1,000,000 1,704,000 2,600,000 390,000 1,248,000 1,300,000 390,000 1,066,000 As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant and equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA. purchases BBB's net asset for P4,000,000. Compute for the consolidated asset after acquisition.
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