Reference no: EM133085586
Question - Platek Enterprises purchases 100 percent of Smith Company for P600,000. At that date Smith Company had the following book value and market values:
Accounts Book value Market value
Cash and receivables P25,000 P25,000
Inventory 125,000 180,000
Plant assets (net) 300,000 475,000
Current liabilities (60,000) (60,000)
Long-term debt (120,000) (120,000)
Common stock (15,000)
Retained earnings (255,000)
Required -
1. What is the total purchase differential (excess of cost over book value)?
2. What is the worksheet elimination to plant assets at the acquisition date?
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