Pakistan Book value Syria Book value Syria Fair value Assets P 334,800 Cash Accounts receivable Inventory.. Land. Buildings and equipment (net) Copyright. Total Assets... Liabilities and Stockholders' Equity 86.400 P 24,000 P 24.000 96.000 60,000 66,000 120,000 48,000 84.000 744,000 222.000 372.000 60.000 P1.381.200 P 354.000 P.606.000 P 96,000 P 42,000 P 42.000 Accounts payable. Estimated liability for contingencies. Bonds payable Common stock, P1 par Paid in capital in excess of par Retained earnings. Stockholders' Equity Required: 6.000 240,000 120,000 120,000 32,160 12,000 435,840 108,000 577,200 72,000 P1,381.200 P 354,000 P438.000 1. Prepare journal entry to record investment in the books of the acquirer company. 2. Prepare schedule for determination and allocated excess: a. Proportionate Basis Approach b. Fair Value Basis Approach 3. Determine the following: a. Consolidated total assets b. Consolidated total liabilities c. Ordinary share/Common stock d. Share premium/additional paid-in capital e. Accumulated profit/loss (Retained earnings). f. Consolidated stockholders' equity g. Non-controlling interests (if any) 4. Prepare the working paper eliminating entries for purposes of preparing consolidates balance sheet. a. Proportionate Basis Approach b. Fair Value Basis Approach 5. Prepare a consolidated workpaper on January 1, 20x4. a. Proportionate Basis Approach b. Fair Value Basis Approach 6. Prepare the consolidated balance sheet immediately after acquisition. a. Proportionate Basis Approach b. Fair Value Basis Approach III - Wholly and Partially-owned Subsidiary: Bargain Purchase Gain with FV of NCI - Date of Acquisition Pakistan Company issued 12,000 shares of its P1 par common stock for 80% interest in Syria Company. The fair value of Pakistan Company stock is P25. Syria Company had been plagued by many troubles, including a lawsuit from a competitor for patent infringement. In view of the uncertainty of the outcome of the lawsuit and its impact on the future viability of Syria Company, the existing owner of Syria Company was willing to sell the company at a discount to its net fair value. The fair value of the identifiable net assets, non-controlling interests and the consideration transferred were reassessed and deemed to be reliably determined. Fair value of the non-controlling interests as at acquisition date was P90,000. The separate balance sheets of the two companies immediately before the consolidation with acquiree's fair value were presented as follows: