has the following balance sheet: Assets Liabilities and Equity Current assets P100,000 Current liabilities P50,000 Non-current assets 2000,000 Common stock, P10 par 100,000 Retained earnings 150,000 Total assets P300,000 Total liabilities and equity P300,000 Any excess of the price paid over the book value is attributable to fixed assets, which have a 10-year remaining life, Astris Company uses the cost method to record its investment in Exile Company. The following trail balances of the two companies are prepared on December 31, 2022: Current assets Non-current assets Investment in Exile Company Current liabilities Astris Company Exile Company P60,000 P130,000 294,000 180,000 250,000 (60,000) (40,000)

has the following balance sheet: Assets Liabilities and Equity Current assets P100,000 Current liabilities P50,000 Non-current assets 2000,000 Common stock, P10 par 100,000 Retained earnings 150,000 Total assets P300,000 Total liabilities and equity P300,000 Any excess of the price paid over the book value is attributable to fixed assets, which have a 10-year remaining life, Astris Company uses the cost method to record its investment in Exile Company. The following trail balances of the two companies are prepared on December 31, 2022: Current assets Non-current assets Investment in Exile Company Current liabilities Astris Company Exile Company P60,000 P130,000 294,000 180,000 250,000 (60,000) (40,000)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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