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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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