ABC Corp. acquired 40% of DEF Corp. by spending Rp1.000.000 cash on January 1, 2020. Book value of DEF’s net assets at acquisition date was Rp1.500.000; Inventories were undervalued for Rp100.000 and note payable was overvalued for Rp200.000. All inventories are sold in 2020 and note payable will be due at the end of 2023. At the end of 2020, DEF announced net loss Rp250.000. The ending balance of “Investment in DEF” account at the end of 2020 will be:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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ABC Corp. acquired 40% of DEF Corp. by spending Rp1.000.000 cash on January 1, 2020. Book value of DEF’s net assets at acquisition date was Rp1.500.000; Inventories were undervalued for Rp100.000 and note payable was overvalued for Rp200.000. All inventories are sold in 2020 and note payable will be due at the end of 2023.

At the end of 2020, DEF announced net loss Rp250.000. The ending balance of “Investment in DEF” account at the end of 2020 will be:

 

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