Assuming Arden Company acquired 80% of the outstanding shares of Wonder Company for P820,000 and non-controlling interest is measured at the proportionate share of Wonder Company’s identifiable net assets, how much is the consolidated stockholder’s equity on the date of acquisition? On January 2, 2020, the Statement of Financial Position of Arden Company and WonderCompany immediately before the combination are:Arden Co.Wonder Co.Cash2,700,0001,800,0004,500,00090,000InventoriesProperty and equipment (net)180,000630,000Total Assets9,000,000900,000Current Liabilities540,000900,0002,700,00090,00090,000Ordinary Shares, P100 parShare premiumRetained EarningsTotal Liabilities and Stockholders' Equity180,0004,860,0009,000,000540,000900,000The fair value of Wonder Company's equipment is P918,000

Calculate Identifiable Net Assets of Wonder Co.: Amount (P) Fair value of assets:…

On January 2, 2020, the Statement of Financial Position of Arden Company and Wonder Company immediately before the combination are: Wonder Co. 90,000 180,000 630,000 Arden Co. Cash Inventories Property and equipment (net) Total Assets 2,700,000 1,800,000 4,500,000 9,000,000 900,000 Current Liabilities Ordinary Shares, P100 par Share premium Retained Earnings Total Liabilities and Stockholders' Equity 540,000 900,000 2,700,000 4,860,000 9,000,000 90,000 90,000 180,000 540,000 900,000 The fair value of Wonder Company's equipment is P918,000

On January 2, 2020, the Statement of Financial Position of Arden Company and Wonder Company immediately before the combination are: Wonder Co. 90,000 180,000 630,000 Arden Co. Cash Inventories Property and equipment (net) Total Assets 2,700,000 1,800,000 4,500,000 9,000,000 900,000 Current Liabilities Ordinary Shares, P100 par Share premium Retained Earnings Total Liabilities and Stockholders' Equity 540,000 900,000 2,700,000 4,860,000 9,000,000 90,000 90,000 180,000 540,000 900,000 The fair value of Wonder Company's equipment is P918,000

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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