Question: I got all the numbers wrong. Please help On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for

I got all the numbers wrong. Please helpI got all the numbers wrong. Please help On December 31, Year1, P Company purchased 80% of the outstanding shares of S Companyfor $6,800 cash. The statements of financial position of the two companiesimmediately after the acquisition transaction appear below. P Company s Company Carrying

On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $6,800 cash. The statements of financial position of the two companies immediately after the acquisition transaction appear below. P Company s Company Carrying Carrying Fair Amount Amount Value Plant and equipment (net) $ 8,400 $ 6,700 $5,500 Investment in s Company 6,800 Inventory 5,460 4,050 4,500 Accounts receivable 3,750 2,100 2,100 Cash 2,100 1,350 1,350 $ 26,510 $14,200 Ordinary shares $10,800 $ 3,300 Retained earnings 9,110 5,500 Long-term liabilities 4,200 2,300 2,300 Other current liabilities 1,500 2,100 2,100 Accounts payable 900 1,000 1,000 $ 26,510 $ 14,200 Required: (a) Calculate consolidated goodwill at the date of acquisition under the proportionate consolidation method. Consolidated goodwill $ 420 (b) Prepare a consolidated statement of financial position in order of liquidity i.e starting with cash at the date of acquisition under each of the following: (b) Prepare a consolidated statement of financial position in order of liquidity i.e starting with cash at the date of acquisition under each of the following: (i) Identifiable net assets method P Company Consolidated Statement of financial position December 31, Year 1 Assets Cash Accounts receivable Inventory Plant and equipment Goodwill $ GA 7,050 9,450 $ 12,160 16,600 420 $ 45,680 $ Liabilities Accounts payable Other current liabilities Long-term liabilities 3,600 X 4,800 8,000 X $ Total liabilities $ 16,400 Shareholders' equity Ordinary shares $ 12,000 Retained earnings 15,410 Non-controlling interest 1,870 29,280 $ 45,680 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. (ii) Fair value enterprise method P Company Consolidated Statement of financial position December 31, Year 1 Assets Cash Accounts receivable Inventory Plant and equipment Goodwill $ 7,050 X 9,450 X 12,160 X 16,600 X 525 X $ 45,785 $ Liabilities Accounts payable Other current liabilities Long-term liabilities > 3,600 4,800 8,000 X $ Total liabilities $ 16,400 Shareholders' equity Ordinary shares 12,000 Retained earnings 15,410 Non-controlling interest 1,975 29,385 $ 45,785 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. (c) Calculate the current ratio and debt-to-equity ratio for P Company under the identifiable net assets (INA) method and the fair value enterprise (FVE) method. (Round "Current ratio" answers to 2 decimal places and "Debt to equity ratio" answers to 4 decimal places.) INA 5.97 FVE 5.97 Current ratio Debt to equity ratio 0.2146 0.2140

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