Reference no: EM133164525
Question - ABC and XYZ establish a joint arrangement using a separate vehicle. The legal form of the separate vehicle does not confer separation between the parties and the separate vehicle. The contractual terms of the joint arrangement provide for the following:
ABC has rights to all of the equipment of the separate vehicle
XYZ shall have 60% rights to the building of the separate vehicle
ABC has the obligation to the accounts payable of the separate vehicle
The other items are shared by the parties on a 50:50 ratio
The separate vehicle provided the following statement of financial position:
|
Assets
|
Liabilities and Equity
|
|
Cash
|
P500,000
|
Accounts payable
|
P1,800,000
|
|
Building - net
|
3,000,000
|
Notes payable
|
1,500,000
|
|
Equipment - net
|
2,000,000
|
Equity
|
2,200,000
|
|
Total
|
P5,500,000
|
Total
|
P5,500,000
|
Required -
1. How much of the total assets of the separate vehicle would be presented in the separate statement of financial position of ABC?
2. How much of the total assets of the separate vehicle would be presented in the separate statement of financial position of XYZ?
3. How much of the total liabilities of the separate vehicle would be presented in the separate statement of financial position of ABC?
4. How much of the total liabilities of the separate vehicle would be presented in the separate statement of financial position of XYZ?