Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fair value except for inventory, which had

image text in transcribed

After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fair value except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45, 000. The fair value of the non-controlling interest was P64,500 on December 31, 20x2.

For each of the question below, indicate the appropriate total that should appear in the consolidated balance sheet immediately after the business combination on the basis of full-goodwill approach:

a. amount of inventory

b. amount of goodwill

c. amount of total assets

d. amount of investment in Silk

e. amount of liabilities

f. amount will be reported as non-controlling interest

g. amount of consolidated retained earnings

h. amount of stockholders; equity will be reported

image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

9th edition

1118608224, 1118608227, 730323994, 9780730323990, 730319172, 9780730319177, 978-1118608227

More Books

Students also viewed these Accounting questions

Question

Compare social roles with gender roles.

Answered: 1 week ago