3. Delta Corporation acquires 70 percent of Bravo Company's stock. Whatamount of non-controlling interest is recognized on the acquisition datebalance sheet if Telephone has the following account balances?Book ValueMarket ValueCashP10,000P10.000Inventory80,00080,000Plant Assets (net)350,000350,000Cost of Goods Sold130,000Depreciation Expense20,000Liabilities(110,000)(110,000)Common Stock(30,000)Retained Earnings(260,000)Sales(190,000)

Net profit Sales 190000 Less: Cost of goods sold (130000) Less :Depreciation (20000) Net…

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 Depreciation Expense 20,000 Liabilities (110,000) (110,000) Common Stock (30,000) Retained Earnings (260,000) Sales (190,000)

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 Depreciation Expense 20,000 Liabilities (110,000) (110,000) Common Stock (30,000) Retained Earnings (260,000) Sales (190,000)

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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