Question
On January 1, 2012, Pastor Company acquired 80% interest in Sister Company for P2,750,000 cash. On this date, the shareholders' equity of Pastor Company and
On January 1, 2012, Pastor Company acquired 80% interest in Sister Company for P2,750,000 cash. On this date, the shareholders' equity of Pastor Company and Sister Company are shown in Table 1. There was no issuance of additional shares during the year. Non-controlling is measured at its fair value of P687,000 on the date of acquisition. The following assets were considered overvalued per Table 2. All other assets and liabilities are fairly valued. Goodwill, if any, is not impaired. On December 31, 2012, the two companies reported the following results of their operations (Table 3). How much should be presented as Shareholders' Equity in the Consolidated Statement of Financial Position on December 31, 2012
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