The statement of financial position of Soorkee Company as of December 1, 2011 had book and fair market values as shown below:

	Book Value		Fair Value
Current Assets	P240 000		P280,000
Land	20,000		100,000
Building and Equipment (net)	400,000		270,000
Patents	10,000		30,000
Total Assets	P670,000		P680,000
Liabilities	P250,000		P250,000
Ordinary Share Capital	100,000
Accumulated Profits	320,000		430,000
Total Liabilities and Shareholders’ equity	P670,000		P680,000

On December 1, 2011, Pulaskee Company purchased all of Soorkee Company’s share for P600,000.

Required:

1. Prepare a journal entry on the books of Pulaskee Company to record the share acquisition.
2. Prepare a schedule showing the determination and allocation of the difference between the consideration given and the book value of interest acquired.
3. Prepare the consolidated statements worksheet elimination entries.

Answer rating: 100% (QA)

Fair value of Assets Liabilities Particulars Amount Current Assets 280000 Non ... View the full answer