ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, determine the value of the current assets of the combined entity

Q: Parent and Sub Inc had the following balance sheets on December 31, 2021 (see image below). On…

A: Consolidation of financial statement occurs when one company take over the assets and liabilities of…

Q: Chel Company acquired 70% of the outstanding stock of Leila Co. on January 1, 2022. The consolidated…

A: Consolidated balance sheet: The consolidated balance sheet is the combined assets and liabilities…

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Q: fair value of the net assets held by XYZ Corp at the date of combination

A: Fair value of net assets = Fair value of assets - Fair value of liabilities

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Q: 6. ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On…

A: Consolidated financial statements are being prepared for combining and consolidating two entities,…

Q: Assuming that Consolidated Financial Statements were prepared on that date, the Current Assets of…

A: In consolidated financial statements, the value of each assets of subsidiary and parent company…

Q: 1. The amount of total stockholders’ equity to be reported will be

A: Answer: To prepare the consolidated balance sheet of P Corporation and S Company, we need to add the…

Q: How much is the consolidated total assets?

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Q: BC and XYZ Inc hahow much is the Goodwill arising from this Business Combination? *d the following…

A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair…

Q: 25. How much should be the underlying equity of Honda in the net assets of Hyundai?

A: Equity is the amount of money which represents to the shareholders and in the business acquisition…

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A: PNB and Allied Banks

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A: Goodwill is an intangible asset which helps a firm earn more than what it’s competitor’s are…

Q: BC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January…

A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair…

Q: ABC Company acquired 80% of DEF Company outstanding shares on January 1, 2022 by paying cash. The…

A: Solution Goodwill is an intangible assets that is associated with the purchase of one company by…

Q: ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January…

A: solution given Purchase price 40000 Fair value of current assets of XYZ 26000 Fair…

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Q: ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January…

A: Upon acquisition of an entity and while preparing consolidated financial statements, all the…

Q: ABC Company acquires 80% of DEF's outstanding stock on January 1, 2021 by paying P300,000 cash and…

A: Consolidated assets include the total assets which shows the aggregate of Acquirer’s asset and fair…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.