What was the total of the current assets

Assignment Help Accounting Basics
Reference no: EM133057420

Question - ACCOUNTING FOR BUSINESS COMBINATION - CONSOLIDATION - DATE OF ACUISITION - Pit Corporation acquired 80% of the outstanding stock of Sam Company. The separate statement of financial position of Pit Corporation immediately after the acquisition and the consolidated statement of financial position are as follows:

 

Pit Comp

Consolidated

Current asset

P106,000

P146,600

Investment in Sam Company

100,000

0

Goodwill

0

7,500

Property and Equipment (net)

270,000

359,900

Total

P476,000

P514,000

Current Liabilities

15,000

P28,000

NCI

0

25,000

Ordinary Share

350,000

350,000

Retained Earnings

111,000

350,000

Total

476,000

514,000

P12,500 of the excess payment for the investment in Sam was ascribed to undervaluation of its property and equipment; the balance of the excess payment was ascribed to goodwill. Current assets of Sam included a P2,000 receivable from Pit which arose before the combination.

Required -

1. What was the total of the current assets on Sam's separate statement of financial position at the time Pit acquired its 80% interest?

2. What was the stockholders' equity of Sam Company before Pit acquire its 80% interest?

Reference no: EM133057420

Questions Cloud

Calculate the amount of cash flow from investing activities : The Company purchased $30,000 bonds from the market. Calculate the amount of cash flow from investing activities
How large can your mortgage loan be : After doing some budgeting, you've decided that the largest monthly mortgage payment you would be comfortable with is $1,450. If the bank is charging 6% annual
Find firm weighted average cost of capital : The firm's required rate of return on equity is 25%. Their marginal tax rate is 25%. What is this firm's weighted average cost of capital (WACC)?
Hearing aid industry and the proposed transaction : Briefly describe Harmonic Hearing Co., the hearing aid industry and the proposed transaction.
What was the total of the current assets : What was the total of the current assets on Sam's separate statement of financial position at the time Pit acquired its 80% interest
Forecast net cash flow : Suppose that you have estimated a regression model that specifies ent cash flow as the dependent variable and sales as the independent variable.
Desired level of risk for joanne portfolio : Explain the actions that you could take to achieve the desired level of risk for Joanne's portfolio. What are the possible consequences of those actions.
Identify the behavioural bias : Identify the behavioural bias referred to in the above statement. Using a relevant market anomaly, briefly explain the behavioural bias you identified.
What dollar amount of suits should be purchased in november : Wild West Fashion expects the total costs of goods sold to be $39,000 in November and $69,000 in December. What dollar amount of suits should be purchased

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd