1. S acquired 100 percent of F for P275,000. At the date of acquisition, Fhad the following book and market values: (see image below) What is theamount of the "Investment in F" account on S's financial records at theacquisition date? *Book ValueMarket ValueP30,000Cash and Receivables P30,000100,000210,000InventoryPlant Assets (net)Current Liabilities120,000300,000(45,000)(115,000)(45,000)(115,000)(10,000)(170,000)Long-term DebfCommon StockRetained Earnings

If a company acquires all the shares of another company, it acquires 100% control over that company.…

1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the "Investment in F" account on S's financial records at the acquisition date? * Book Value Cash and Receivables P30,000 100,000 210,000 Market Value P30,000 120,000 300,000 Inventory Plant Assets (net) Current Liabilities Long-term Debt Common Stock Retained Earnings (45,000) (115,000) (10,000) (170,000) (45,000) (115,000)

1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the "Investment in F" account on S's financial records at the acquisition date? * Book Value Cash and Receivables P30,000 100,000 210,000 Market Value P30,000 120,000 300,000 Inventory Plant Assets (net) Current Liabilities Long-term Debt Common Stock Retained Earnings (45,000) (115,000) (10,000) (170,000) (45,000) (115,000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date? 2. What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?
Here are the pre-acquisition balance sheets of POP Company and Sicle Company onDecember 31, 20x5:Pop Co. Sicle Co.Book Value Book Value Market ValuesCurrent assets P 5,000,000 P 2,000,000 P 1,500,000Investments 1,000,000 500,000 500,000Land 10,000,000 5,000,000 6,000,000Buildings (net) 40,000,000 25,000,000 16,000,000Equipment (net) 25,000,000 10,000,000 2,000,000Total assets P 81,000,000 P 42,500,000Current liabilities P 4,000,000 P 1,500,000 1,500,000Long-term liabilities 20,000,000 10,000,000 12,000,000Common stocks, P10par 5,000,000 1,000,000Additional paid-incapital 40,000,000 20,000,000Retained earnings 12,000,000 10,000,000Total liabilities &equity P 81,000,000 P 42,500,000In addition to the above Sicle Co. has identifiable tangibles with a fair value of P5,000,000not recognize on its book but appropriately capitalize by Pop.On January 1, 20x6 Pop issues 400,000 shares of its stock, with a par value of P10/share anda market value of 100/share, to acquire Sicle Company’s…
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