BADVACIX – ACCOUNTING FOR BUSINESS COMBINATIONSMODULE 2: CONSOLIDATED FINANCIAL STATEMENTSPROBLEM 1 (80% - Owned Subsidiary) Sim Corporation's balance sheet at January 1, 20x4, reflected the followingbalances:P 80,000120,00070,000Buildings and Equipment (net) 480,000P 40,00060,000200,000250,000200,000P750,000Cash and ReceivablesAccounts PayableIncome Taxes PayableBonds PayableCommon StockInventoryLandRetained EamingsTotal Liabilities and Stockholders EquityTotal AssetsP750,000Ford Corporation entered into an acquisition program and acquired 80 percent of Slim's common stock on January 2,20x4, for P470,000. The fair value of the non controlling interest at the date was determined to be at P117,500. A carefulreview of the fair value of AA's assets and liabilities indicated the following:AccountsBook valueFair valueInventoryLandP120,00070,000Buildings and equipment (net) 480,000P140,00060,000550,000Required 1: Compute the appropriate amount to be induded in the consolidated balance sheet immediately following theacquisition for each of the following items: (Using fair value or full goodwill method)1. Inventory2. Land3. Buildings and Equipment (net).4. Goodwill5. Investment in Slim Corporation6. Total assets7. Total liabilities8. Controlling Interest or Parent Stockholders' Equity9. Non-controlling interest10. Consolidated Stockholders' EquityRequired 2: Compute the appropriate amount to be included in the consolidated balance sheet immediately following theacquisition for each of the following items: (Using proportionate or partial goodwill method)1. Inventory2. Land3. Buildings and Equipment (net).4. Goodwill5. Investment in Slim Corporation6. Total assets7. Total liabilities8. Controlling Interest or Parent Stockholders' Equity9. Non-controlling interest10. Consolidated Stockholders' Equity

Since there are multi sub-parts, we are going to solve first three for you. To get the remaining…

Answered: D00 DO Accounts Payable Income Taxes…

Business

Accounting

D00 DO Accounts Payable Income Taxes Payable Bonds Payable Common Stock DO

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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