Banana Company purchases 80 percent of Mango. At the date of acquisition, Mango has revenue of P250,000 and expenses of P170,000. What amount of pre-acquisition earnings will be created on the consolidated income statement at the acquisition date?
2. Banana Company purchases 80 percent of Mango. At the date of acquisition, Mango has revenue of P250,000 and expenses of P170,000. What amount of pre-acquisition earnings will be created on the consolidated income statement at the acquisition date?
3. Delta Corporation acquires 70 percent of Bravo Company’s stock. What amount of non-controlling interest is recognized on the acquisition date balance sheet if Telephone has the following account balances?
Book Value Market Value
Cash P10,000 P10,000
Inventory 80,000 80,000
Plant Assets (net) 350,000 350,000
Cost of Goods Sold 130,000
Liabilities (110,000) (110,000)
Common Stock (30,000)
Sales (190,000)
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