Reference no: EM133155364
Question - Below is the summary of the records of Panyo and Sipon Company on January 1, 20x1 immediately before the business combination:
|
|
Panyo
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Sipon
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|
Current Assets
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5,000,0000
|
2,000,000
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|
Plant Assets
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10,000,000
|
2,500,000
|
|
Total Assets
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15,000,000
|
4,500,000
|
|
Liabilities
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3,000,000
|
1,000,000
|
|
Share Capital
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8,000,000
|
1,300,000
|
|
Retained Earnings
|
4,000,000
|
2,200,000
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|
Total Liabilities and Equity
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15,000,000
|
4,500,000
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Panyo acquired 70% of the outstanding shares of Sipon by issuing 10,000 shares of its 300-par value ordinary shares with fair value of 390 per share. The parties agreed that the inventories of Sipon is overvalued by 85,000 while one of its plant assets, which has a remaining life of 4 years, is undervalued by 600,000.
Panyo incurred direct acquisition expenses amounting to 25,000 and additional 15,400 for share registration.
During the year, the following transactions transpired:
Panyo generated 6,000,000 in revenues and incurred 4,000,000 in expenses. 20% of the expenses are still unpaid as of year-end.
Sipon generated 1,000,000 in revenues and incurred 700,000 in expenses. 30% of the expenses are still unpaid as of year-end.
Panyo declared and paid dividends amounting to 1,500,000. Sipon declared and paid 300,000.
Required - Using the information above, prepare the year-end consolidated balance sheet assuming:
a. NCI is measured at fair value.
b. NCI is measured at proportionate share.