REQUIRED

1. How much was the total consideration transferred to the former

owners of Zoey Company for its acquisition of stocks?

2. What will be the amount of goodwill that would be reported in the consolidated balance sheet, if any?

3. How much would the non controlling interest be reporded in the consolidated balance sheet?

4. How much would the retained earnings be recorded in the consolidated balance sheet?

5. How much would the total assets be in the consolidated balancevsheet?

6. How much would the total liabiities be in the consolidated balance sheet?

7. How much would the total shareholder's equity be in the consolidated balance sheet?

On January 1, 2021, Hamtaro Company issued 12,00 shares of its P1 par common stock for 80% interest in Zoey Company. The fair value of Hamtaro Company stock is P24. In addition to the issueance of stocks, Hamtaro agred that it will pay P50,000 after 3 years if the net earning of the group exceed P100,000 in total for the next 3-year period. The estimated fair value for such contingency is P12,000 The fair value of the identifiable net assets, non controlling interests and the consideration transferred were reassessed and deemed to be reliably determined. Included in the liabilities is a contingency for a certain lawsuit with an estimated fair value of P6,000. The lawyers are not certain for its probability Fair Value of non controlling interests as at acquisition date was P90,000. Acquisition-related costs paid on January 1 is P15,000. The separate balance sheet of the two companies immediately, before the consolidation with acquiree's fair value were presented as follows ZOEY FAIR VALUE ASSETS CASH ACCOUNTS RECEIVABLE INVENTORY LAND BLDG. AND EQPT. (NET) COPYRIGHT TOTAL ASSETS HAMTARO ZOEY BOOK VALUE BOOK VALUE 334,800 86,400 24,000 96,000 60,000 120,000 48,000 744,000 222,000 24,000 66,000 84,000 366,000 60,000 600,000 1,381,200 354,000 96,000 42,000 44,000 6,000 120,000 LIABILITIES & EQUITY ACCOUNTS PAYABLE ESTIMATED LIABILITY FOR FUTURE LAWSUITS BONDS PAYABLE COMMON STOCK P1 PAR ADDITIONAL PAID IN CAPITAL RETAINED EARNINGS TOTAL LIABILITIES & EQUITY 240,000 32,160 435,840 577,200 1,381,200 120,000 12,000 108,000 72,000 354,000 170,000