Question
On January 2, 2021, the Statement of Financial Position of Parent and Subsidiary Company prior to the combination are: Parent Co. Subsidiary Co. Cash P
On January 2, 2021, the Statement of Financial Position of Parent and Subsidiary Company prior to the combination are:
| Parent Co. | Subsidiary Co. |
Cash | P 450,000 | P 15,000 |
Inventories | 300,000 | 30,000 |
Property and equipment (net) | 750,000 | 105,000 |
Total Assets | P 1,500,000 | P 150,000 |
|
|
|
Current Liabilities | P 90,000 | P 15,000 |
Common Stock, P100 par | 150,000 | 15,000 |
Additional Paid in Capital | 450,000 | 30,000 |
Retained Earnings | 810,000 | 90,000 |
Total Liabilities and Stockholders Equity | P 1,500,000 | P 150,000 |
The fair value of Subsidiary Companys equipment is P153,000.
Assuming Parent Company acquired 80% of the outstanding common stock of Subsidiary Company for P136,800 and NCI is measured at its proportionate share of subsidiarys net assets, how much is the consolidated stockholders equity on the date of acquisition?
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