in a combination properly accounted for as acquisition of interest

Transcribed Image Text: AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed
Statement of Financial Position before the combination show:
ввB Cогр.
88,000
420,000
1,119,600
1,040,000
AAA Inc.
Cash
Accounts Receivable, net
Inventory
Property Plant and Equipment
Patent
88,000
500,000
1,700,000
4,654,000
260,000
Accounts Payable
Mortgage Payable
Capital Stock, par P100
Share Premium
Retained Earnings
171,600
1,000,000
1,704,000
2,600,000
1,300,000
390,000
1,066,000
390,000
1,248,000
As per independent appraiser’s report, BBB’s assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant
and equipment and P338,000 for patents. BBB’s liabilities are properly valued. AAA purchases BBB’s net asset for P4,000,000.
Compute for the consolidated asset after acquisition.

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