On January 1, 20x9, Jonathan Corporation acquired 80 percent of Sea-Gull Company's common stock for 

P160,000 cash. The fair value of the non-controlling interest at that date was determined to be P40,000.

Data from the balance sheets of the two companies included the following amounts as of the date of

acquisition:

.

At the date of the business combination, the book values of Sea-Gull's net assets and liabilities

approximated fair value except for inventory, which had a fair value of P45,000, and land, which had a fair

value of P60,000 (using the full-goodwill approach).

BB

Corporation

SS

Enterprises

Consolidated

Entity

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P 60,000 P 35,000 P 95,000

Accounts Receivable . . . . . . . . . . . . . . . . . . . . 90,000 50,000 130,000

Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000 90,000 ?

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 50,000 105,000

Buildings and Equipment . . . . . . . . . . . . . . . . . . 340,000 220,000 560,000

Less: Accumulated Depreciation . . . . . . . . . . . . (180,000) (90,000) (270,000)

Investment in SS Enterprises Stock . . . . . . . . . . 110,000

Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________ _________ ___30,000

Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P 610,000 P 355,000 P ?

Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . P 75,000 P 55,000 P ?

Wages Payable . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 20,000 50,000

Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000 200,000 450,000

Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . ? 30,000 100,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . __155,000 ___50,000 __140,000

Total Liabilities and Stockholders' Equity . . . . . . P 610,000 P 355,000 P ?

Jonathan

Corporation

Sea-Gull

Corporation

Cash................................................................ P 60,000 P 20,000

Accounts Receivable........................................ 80,000 30,000

Inventory......................................................... 90,000 40,000

Land................................................................ 100,000 40,000

Buildings and Equipment................................... 200,000 150,000

Less: Accumulated Depreciation....................... (80,000) (50,000)

Investment in Sea-Gull Corporation Stock........... _160,000 _____-____

Total Assets ...................................................... P 610,000 P230,000

Accounts Payable............................................ P 110,000 30,000

Bonds Payable................................................. 95,000 40,000

Common Stock................................................ 200,000 40,000

Retained Earnings............................................. _205,000 120,000

Total Liabilities and Stockholders' Equity.............. P 610,000 P 230,000

1. What amount of total inventory will be reported in the consolidated balance sheet prepared

immediately after the business combination?

2. What amount of goodwill will be reported in the consolidated balance sheet prepared immediately

after the business combination?

3. What amount of total assets will be reported in the consolidated balance sheet prepared immediately

after the business combination?

4. What amount of total liabilities will be reported in the consolidated balance sheet prepared

immediately after the business combination?

5. What amount will be reported as non-controlling interest in the consolidated balance sheet prepared

immediately after the business combination?

6. What amount of consolidated retained earnings will be reported?

7. What amount will be reported as total stockholders' equity in the consolidated balance sheet prepared

immediately after the business combination?