Subsidiary Company had common stock of P350,000 and retained earnings of P490,000. Parent Inc. had common stock of P700,000 and retained earnings of P980,000. On January 1, 2021, Parent issued 26,000 shares of common stock with a P12 par value and a P30 fair value for all of Subsidiary's outstanding common stock. Acquisition related cost such as legal fees and finder's fees amounted to P150,000. This combination was accounted for as an acquisition. Immediately after the combination, what was the consolidated net assets?

Subsidiary Company had common stock of P350,000 and retained earnings of P490,000. Parent Inc. had common stock of P700,000 and retained earnings of P980,000. On January 1, 2021, Parent issued 26,000 shares of common stock with a P12 par value and a P30 fair value for all of Subsidiary's outstanding common stock. Acquisition related cost such as legal fees and finder's fees amounted to P150,000. This combination was accounted for as an acquisition. Immediately after the combination, what was the consolidated net assets?

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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