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?