ABC Corporation acquired 70 percent of XYZ Corporation onAugust 1 for P420,000. On that date, XYZ Corporation hadthe following book values and market values. What is theamount of purchase differential recognized on theacquisition date consolidated balance sheet with respect toplant assets. *Book ValueP40,000170,000Market ValueP40,000230,000700,000CashInventoryPlant Assets (net)Cost of Goods Sold620,000220,000|60,000Depreciation ExpenseLiabilitiesCommon Stock(300,000)(10,000)(450,000)(350,000)(300,000)Retained EarningsSalesYour answer

ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of purchase differential recognized on the acquisition date consolidated balance sheet with respect to plant assets. *

ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of purchase differential recognized on the acquisition date consolidated balance sheet with respect to plant assets. *

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

ABC Corporation acquired 70 percent of XYZ Corporation on
August 1 for P420,000. On that date, XYZ Corporation had
the following book values and market values. What is the
amount of purchase differential recognized on the
acquisition date consolidated balance sheet with respect to
plant assets. *
Book Value
P40,000
170,000
Market Value
P40,000
230,000
700,000
Cash
Inventory
Plant Assets (net)
Cost of Goods Sold
620,000
220,000|
60,000
Depreciation Expense
Liabilities
Common Stock
(300,000)
(10,000)
(450,000)
(350,000)
(300,000)
Retained Earnings
Sales
Your answer

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