On May 1, 2021, the separate statement of financial position of Labs Corporation and Babes Company are as follows:

	Labs	Babes
Cash	P145,700	P15,500
Accounts receivable	120,500	35,800
Inventories	42,500	10,200
Plant assets	185,800	78,000
Total Assets	P494,500	P139,500
Liabilities	P110,400	P29,000
Capital stock, P100 par value	200,000	50,000
Additional paid in capital	50,000	-
Retained earnings	134,100	60,500
Total liabilities and stockholders’ equity	P494,500	P139,500

On May 1, 2021, Labs acquired 100% of Simon’s outstanding capital stock for P150,000. Labs incurred an additional P32,700 in acquisition-related costs. All the assets of Simon are fairly valued except the plant assets with a fair value of P90,000 on May 1, 2021.

1. In the consolidated statement of financial position on May 1, 2021, what amount of total assets be reported?

2. Using the same data above, what amount of stockholders’ equity will be reported in the consolidated statement of financial position on May 1, 2021?

3. How much is the goodwill to be recognized on the combination?

Note: Input your answer with comma, no sign of peso (e. g. 145,000). If the answer is negative goodwill for instance, enclose it with parenthesis, e. g. (435,000).

Answer rating: 100% (QA)

As per the requirements laid under IFRS 10 Consolidated Financial Statements an entity is require... View the full answer