Reference no: EM133067633

Question - Separate Statement of Financial Position for P Corporation and S Corporation at December 31, 2021 are as follows:

	P CORP	S CORP
CASH	50,000	20,000
OTHER CURRENT ASSET	150,000	80,000
LAND	300,000	50,000
BUILDINGS AND EQUIPMENT	600,000	200,000
LESS: ACCUMULATED DEPRECIATION	(200,000)	(50,000)
TOTAL ASSETS	900,000	300,000
CURRENT LIABILITIES	100,000	50,000
ORDINARY SHARE CAPITAL, P10 PAR	600,000	100,000
SHARE PREMIUM	60,000	75,000
RETAINED EARNINGS	140,000	75,000
TOTAL EQUITIES	900,000	300,000

P issued 10,000 shares of its own ordinary shares with a market value of P300,000 on January 2, 2022 in exchange for 80% of S's outstanding shares. All of S's assets and liabilities were recorded at their fair values except for buildings and equipment that had a fair value of P170,000 and remaining useful life of 5 years. P Corporation measure the non controlling interest at its fair market value.

Required -

1. How much Goodwill should appear in the consolidated balance sheet prepared immediately after the business combination?

2. At what amount would Building and Equipment, net of accumulated depreciation, should appear in P's consolidated balance sheet prepared on January 2, 2022, immediately after the business combination?

3. How much is the consolidated equity as of date of acquisition?