ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of purchase differential recognized on the acquisition date consolidated balance sheet with respect to plant assets. *

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC Corporation acquired 70 percent of XYZ Corporation on
August 1 for P420,000. On that date, XYZ Corporation had
the following book values and market values. What is the
amount of purchase differential recognized on the
acquisition date consolidated balance sheet with respect to
plant assets. *
Book Value
P40,000
170,000
Market Value
P40,000
230,000
700,000
Cash
Inventory
Plant Assets (net)
Cost of Goods Sold
620,000
220,000|
60,000
Depreciation Expense
Liabilities
Common Stock
(300,000)
(10,000)
(450,000)
(350,000)
(300,000)
Retained Earnings
Sales
Your answer
Transcribed Image Text:ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of purchase differential recognized on the acquisition date consolidated balance sheet with respect to plant assets. * Book Value P40,000 170,000 Market Value P40,000 230,000 700,000 Cash Inventory Plant Assets (net) Cost of Goods Sold 620,000 220,000| 60,000 Depreciation Expense Liabilities Common Stock (300,000) (10,000) (450,000) (350,000) (300,000) Retained Earnings Sales Your answer
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