On January 1st, 2009, P company acquired 80% of the outstanding common stocks of S company by issuing 50000 share of its JD1 par value and JD3 fair value. Just before the acquisition the balance sheets of the two companies were as follow:

Assets:

P

S

cash

260 000

58000

accounts receivable

142000

23000

inventory

117000

54000

equipment

386000

45000

land

630000

20000

Total assets

968000

200000

liabilities & Equities

accounts payable

104000

20000

mortgage payable

72000

10000

capital - common stock

400000

100000

other contributed capital

208000

20000

retained earnings

184000

50000

Total liabilities and equity

968000

271000

P incurred JD1000 as professional fees and JD2000 as securities issuance cost S land was revalued by 25000. Question 5 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Capital balance on the consolidated balance sheet immediately after this acquisition is :

500000

550000

450000

400000

Question 6 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Other contributed capital balance on the consolidated balance sheet immediately after this acquisition is :

208000

306000

228000

308000

Question 7 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text The allocation entry on the work-paper includes:

Dr. difference 17500

D.r goodwill 12500

Dr. land 5000

Dr. land 17500

Cr. land 17500

Question 8 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text The investment - equity elimination entry on the work-paper includes:

Dr. investment 150000

Dr. NCI 37500

Cr. Difference 17500

Cr. capital 100000

Cr. Other contributed capital 20000

Cr. Retained earnings 50000

Dr. Difference 17500

Question 9 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Retained earning balance on the consolidated balance sheet immediately after this acquisition is :

182000

232000

234000

184000

Question 10 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Nom- controlling interests balance on the consolidated balance sheet immediately after this acquisition is :

187500

170000

17500

37500