Reference no: EM132623949

Power Corporation acquired 70 percent of Silk Corporation's common stock on December 31, 2019. Balance sheet data for the two companies immediately following acquisition follow:

Item	Power	Silk
Cash	P44,000	P30,000
Accounts receivable	110,000	45,000
Inventory	130,000	70,000
Buildings and equipment	500,000	400,000
Less: Accumulated depreciation	(223,000)	(165,000)
Investment in Silk Corporation stock	150,500
Total Assets	P791,500	P405,000
Accounts payable	P61,500	P28,000
Taxes payable	95,000	37,000
Bonds payable	280,000	200,000
Common stock	150,000	50,000
Retained earnings	205,000	90,000
Total liabilities and stockholders' equity	P791,500	P405,000

After the date of business combination, the book values of Silk's net assets and liabilities approximated their fair value except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45,000. The fair value of non-controlling interest was P64,500 on December 31, 2019. For each of the questions below, indicate the appropriate total that should appear in the consolidated balance sheet immediately after the business combination on the basis of full goodwill (fair value) approach.

Required:

Problem 1: Determine the consolidated balances