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On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $12,900 cash. The statements of financial position of
On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $12,900 cash. The statements of financial position of the two companies immediately after the acquisition transaction appear below. Required: (a) Calculate consolidated goodwill at the dote of acquisition under the proportionate consolidation methoci 1 Omit $ sign in your response.) b) Prepare a consolidated statement of financial position at the date of acquisition under each of the following: (i) Identifiable net assets method (ii) Fair value enterprise method (c) Calculate the current ratio and debt-to-equity ratio for P Company under the identifiable net assets (iNA) method and the fair value enterprise (FVE) method. (Round "Current ratio" answers to 2 decimal places and "Debt to equity ratio" answers to 4 decimal places.)
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