Question
Link Inc. acquires all of the outstanding stock of Ganondorf Corporation on January 1, 2017. At that date, Ganondorf only owns three assets and no
Link Inc. acquires all of the outstanding stock of Ganondorf Corporation on January 1, 2017. At that date, Ganondorf only owns three assets and no liabilities:
| Book Value | Fair Value | |
| Inventory | P40,000 | P50,000 |
| Equipment (10 year life) | 80,000 | 75,000 |
| Building (20 year life) | 200,000 | 300,000 |
If Link pays P450,000 in cash for Ganondorf, what amount would be represented as the subsidiarys building in a consolidation at December 31, 2019, assuming the book value at that date is still P200,000?
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Financial Accounting
Authors: Bev Vickerstaff, Parminder Johal
1st Edition
1444170414, 978-1444170412
