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The statement of financial position of Soorkee Company as of December 1, 2011 had book and fair market values as shown below: Book Value Fair
The statement of financial position of Soorkee Company as of December 1, 2011 had book and fair market values as shown below:
|
| Book Value |
| Fair Value |
| Current Assets | P240 000 |
| P280,000 |
| Land | 20,000 |
| 100,000 |
| Building and Equipment (net) | 400,000 |
| 270,000 |
| Patents | 10,000 |
| 30,000 |
| Total Assets | P670,000 |
| P680,000 |
|
|
|
|
|
| Liabilities | P250,000 |
| P250,000 |
| Ordinary Share Capital | 100,000 |
|
|
| Accumulated Profits | 320,000 |
| 430,000 |
| Total Liabilities and Shareholders equity | P670,000 |
| P680,000 |
On December 1, 2011, Pulaskee Company purchased all of Soorkee Companys share for P600,000.
Required:
- Prepare a journal entry on the books of Pulaskee Company to record the share acquisition.
- Prepare a schedule showing the determination and allocation of the difference between the consideration given and the book value of interest acquired.
- Prepare the consolidated statements worksheet elimination entries.
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