Problem 1 F Company acquires the assets and liabilities of M Company on January 1, 2019. To obtain these shares, F pays P400,000, and issues 10,000 shares of 20 par value common stock on this date. S stock had a fair value of 40 per share on that date. F also pays 18,000 for arranging these transactions and 15,000 for stock issuance costs. The individual FS of each company are as follows: F. Inc Book Value M Company Book value Fair Value Cash 900,000 80,000 80,000 Receivables 480,000 180,000 170,000 Inventory 660,000 260,000 250,000 Land 300,000 120,000 150,000 Building (Net) 1,200,000 220,000 220,000 Equipment (Net) 360,000 100,000 75,000 Accounts Payable 480,000 60,000 60,000 Long term Liabilities 1,140,000 340,000 300,000 Common Stock 1,200,000 80,000 Retained Earnings 1,080,000 480,000 In addition, M Company holds a fully amortized trademark that still retains a P40,000 value. Assuming the combination is accounted for as an acquisition, immediately, after the combination, in the balance sheet of Fay.. 1. What is the amount of goodwill? 2. What will be reported for inventory? 3. What will be reported for building? 4. What will be reported as common Stock? 5. What will be reported as retained earnings 6. What amount will be reported as additional paid in capital 7. What will be reported for cash after purchased transactions? Problem 2. P Company owns an 70% controlling interest in S Company. S company regularly sells merchandise to P company, which then sold to outside parties. The gross profit on all such sales is 40%. On January 1,2020 P sold land and building to S Company. The value of the parcel is 20% to land and 80% top structures. Pertinent data for the companies is summarize below Internally generated net income, 2019 Internally generated net income, 2020 Intercompany Merchandise sales, 2019 Intercompany Merchandise sales, 2020 Intercompany Inventory, December 31, 2019 Intercompany Inventory, December 31, 2020 Cost of real estate sold on January 1, 2019 Sales price of real estate on January 1, 2020 Depreciable life of the building 520,000 P Company S. Company 250,000 3,440,000 235,000 100,000 120,000 15,000 20,000 600,000 800,000 20 years 8. For 2019, What is the consolidated comprehensive income attributable to controlling interest? 9. For 2020, What is the consolidated comprehensive income attributable to Non-controlling interest? 10. For 2020, What is the consolidated comprehensive income attributable to Non-controlling interest?