Pakistan company issued 12,000 shares of its 1 peso par common stock for 80% interest in syria company. The fair value kf pakistan company stock is 25 peso. Syria company had been plaque by many trouble including lawsuits from a competitor for patent infringement the existing owners of Syria company was willing to sell it for discount to its net fair value the fair value of non controlling interest as at acquisitions date was 90,000 pesos.

Pakistan Syria Book value Assets Book value Syria P 334,800 Fair value Cash ..... 86,400 P 24,000 Accounts receivable 96,000 60,000 P 24.000 Inventory ...... 120,000 48,000 66.000 Land .. . .... 744,000 Buildings and equipment (net) .... ..... . 222,000 84.000 0- 372.000 Copyright ..... . P.1,381.200 P 354,000 60,000 Total Assets . .. . . . Liabilities and Stockholders' Equity P 606.000 P 96,000 P 42.000 Accounts payable . .... P 42.000 Estimated liability for contingencies . .. ... Bonds payable . . . . . . . . . . 240,000 120,000 6,000 Common stock, Pl par . . .. . . . . . . . . . . . . . 32,160 12,000 120,000 435,840 Paid in capital in excess of par . . . . ..... . 108,000 . . . . . . . .. 577,200 Retained earnings . . .. . 72,000 PL.381.200 Stockholders' Equity ...... P 354,000 P438.000 Required: 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 consolidate 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