PROBLEM 1. On January 1, 2021, Rose Corporation purchased 80% of the common stock of Mary Co.

Separate balance sheet data for the companies at the combination date are given below:

Rose Mary
Cash P 24,000 P 206,000
Accounts Receivable 144,000 26,000
Inventory 132,000 38,000
Land 68,000 32,000
Plant assets 700,000 300,000
Accum. Depreciation ( 240,000 ) ( 60,000
Investment in Lapp 392,000
Total assets P 1,230,000 P 542,000

Accounts payable P 206,000 P 142,000

Capital stock 800,000 300,000
Retained earnings 224,000 100,000
Total liabilities & equities P 1,230,000 P 542,000

At the date of combination, the book values of Mary’s net assets were equal to the fair value except for Mary’s
inventory, which had a fair value of P60,000. NCI is measured at fair value. Determine below what the consolidated
balance would be for each of the requested accounts.

3. What amount of Inventory will be reported?

4. What amount of Goodwill will be reported?

5. What amount of total liabilities will be reported?

6. What is the reported amount for the noncontrolling interest?

7. What is the amount of consolidated Retained Earnings?

8. What is the amount of total assets?