Reference no: EM132751664

Question - On January 1, 2030, ABC Corp acquired 60% interest in XYZ Corp by issuing 5,000 shares with fair value of P60 per share and par value of P40 per share. The financial statements of ABC Corp and XYZ Corp on the acquisition are shown below:

A X

Book Values Book Values Fair Value

Cash 40,000 20,000 20,000

Accounts Receivable 120,000 48,000 48,000

Inventory 160,000 92,000 124,000

Equipment 800,000 200,000 240,000

Accumulated Depreciation (80,000) (40,000) (48,000)

Total Assets 1,040,000 320,000 384,000

Accounts Payable 80,000 24,000 24,000

Bonds Payable 120,000

Ordinary share 480,000 200,000

Share premium 160,000

Retained Earnings 200,000 96,000

Total Liabilities and Equity 1,040,000 320,000

The equipment has a remaining useful life of 4 years from January 1, 2030. ABC Corp. elects to measure NCI as its proportionate share in XYZ net identifiable assets. ABC and XYZ did not declare any dividends in 2030. There were also no intercompany transactions. The group determined that there is no goodwill impairment. The separate statement of financial position on December 31, 2030 of ABC and XYZ is presented as follows:

ABC XYZ

Cash 92,000 228,000

Accounts Receivable 300,000 88,000

Inventory 420,000 60,000

Investment in XYZ 300,000

Equipment 800,000 200,000

Accumulated Depreciation (240,000) (80,000)

Total Assets 1,672,000 496,000

Accounts Payable 172,000 120,000

Bonds Payable 120,000

Ordinary share 680,000 200,000

Share premium 260,000

Retained Earnings 440,000 176,000

Total Liabilities and Equity 1,672,000 496,000

The statement of profit or loss of ABC and XYZ Corp for year 2030 is shown below:

A X

Sales 1,200,000 480,000

COGS (660,000) (288,000)

Gross Profit 540,000 192,000

Depreciation expense (160,000) (40,000)

Distribution costs (128,000) (72,000)

Interest expense (12,000)

Profit 240,000 80,000

How much is the consolidated net income?

How much is the consolidated total assets?

How much is the consolidated liabilities?