AA2 Chapter 11 Sol

CHAPTER 11
SUGGESTED ANSWERS
EXERCISES
Exercise 11 - 1
1. a.
Ordinary Share Capital, Sing Co.
Additional Paid-in Capital, Sing Co.
Retained Earnings, Sing Co.
Goodwill
Investment
Cost of interest acquired
Book value of interest acquired
(P100,000 + P20,000 + P25,000) x 100%
Goodwill
b.

Investment
Profit or Loss /Gain on Business Combination
(P100,000 + P80,000 - P30,000) x 100%
Negative Goodwill
c.1

Goodwill
Investment
Minority Interest
(100,000 + 40,000 5,000) x 75%
Goodwill
Grossed-up Goodwill (P18,750/75%)
c.2
100,000
20,000
25,000
15,000
160,000
P160,000
145,000
P 15,000
100,000
80,000
140,000
10,000
30,000
P140,000
150,000
P 10,000
75,000
30,000
25,000
120,000
3,750
6,250
P120,000
101,250
P 18,750
P 25,000

Goodwill
Investment
75,000
30,000
18,750

100,000
40,000
120,000
3,750
2.
c.1
Chapter 11 Suggested Answers (AA2.2006)
Goodwill
Investment
Retained Earnings
Minority Interest
c.1

Goodwill
Investment
Retained Earnings
Minority Interest
Minority interest::
Ordinary Share Capital
APIC
RE
Share in goodwill (P25,000 x 25%)
Exercise 11 2
Case A
Ordinary Share Capital, Soya Co.
Additional Paid-in Capital, Soya Co.
Retained Earnings, Soya Co.
Goodwill
Investment
Minority Interest
Cost
(P100,000 + P30,000 + P20,000) x 80%
Goodwill
Goodwill
Investment
Case B
Minority Interest
Investment
Profit or Loss / Gain on Business Combination
Cost
(P50,000 + P20,000 + P10,000) x 75%
Negative Goodwill
Grossed-up Negative goodwill (P2,000/75%)
page2
25,000
120,000
5,000
40,000
100,000
40,000
18,750
120,000
5,000
33,750
P25,000
10,000
(1,250)
6,250
P 40,000
80,000
24,000
16,000
6,250
125,000
1,250
P125,000
120,000
P 5,000
P 6,250
80,000
24,000
16,000
5,000
125,000
37,500
15,000
7,500
667
58,000
2,667
P58,000
60,000
P 2,000
P 2,667

Investment
Case C
Minority Interest
Investment
Profit or Loss (Gain on Bus Com)
Cost
(P80,000 + P40,000 - P10,000) x 60%
Negative Goodwill
Grossed-up Negative goodwill (P3,000 / 60%)
Investment
Profit or Loss (Gain on Bus Com)
Exercise 11 - 3
Case A
Ordinary Share Capital, Say Co.
Additional Paid-in Capital, Say Co.
Investment
Retained Earnings, Say Co.
Case B
Plant and Equipment
Investment
Minority Interest
Cost
(P100,000 + P50,000 - P10,000) x 90%
Increase in P&E
Total increase in plant and equipment ((P18,000/90%)
Plant and Equipment
page3
37,500
15,000
7,500
58,000
2,000
48,000
24,000
2,000
63,000
5,000
6,000
P63,000
66,000
P 3,000
P 5,000
48,000
24,000
63,000
3,000
6,000
100,000
50,000
140,000
10,000
90,000
45,000
20,000
144,000
9,000
2,000
P144,000
126,000
P 18,000
P 20,000
90,000
45,000
18,000
page4
Investment
Case C
Minority Interest
Investment
Inventories
Cost
(P100,000 +P50,000 - P10,000) 80%
Decrease in Inventory
Total decrease in inventory (P8,000/80%)
Investment
Inventories
Exercise 11 - 4
a. Investment in Sax Co.
Additional Paid-in Capital
Ordinary Share Capital, Sax Co.
Additional Paid-in Capital, Sox Co.
Retained Earnings, Sax Co.
Equipment
Investment in Sax Co.
Minority Interest
Cost (4,000 x P120)
(P450,000 x 90%)
Increase in Equipment
Total increase in equipment (P75,000/90%)
Additional Paid-in Capital, Sox Co.
Equipment
b.
144,000
9,000
80,000
40,000
2,000
104,000
10,000
8,000
P104,000
112,000
P 8,000
P 10,000
80,000
40,000
104,000
8,000
8,000
P480,000
400,000
80,000
90,000
225,000
90,000
83,333
480,000
8,333
P480,000
405,000
P 75,000
P 83,333
90,000
225,000
90,000
75,000
480,000

420,000

Additional Paid-in Capital, Sax Co.
90,000
225,000
350,000
70,000
page5

Goodwill
Minority Interest
Cost (3,500 x P120)
(P450,000 x 90%)
Goodwill
c.
90,000
16,667
420,000
1,667
P420,000
405,000
P 15,000
P 16,667

Goodwill
90,000
225,000
90,000
15,000

360,000

Minority Interest
Inventory
90,000
225,000
90,000
5,000
Cost (3,000 x P120)

(P450,000 x 90%)
Difference
Total adjustment (P45,000/90%)
Decrease in inventory
Negative goodwill
Inventory
420,000
300,000
60,000
25,000
360,000
25,000
P360,000
405,000
P 45,000
P 50,000
25,000
P 25,000
90,000
225,000
90,000
Exercise 11 5
1.
Minority interest (P90,000 P15,000*)
Percentage of minority interest
Total Shareholders Equity of Sand
Less Ordinary Share Capital and APIC (P800,000 + P400,000)
Deficit of Sand
*Adjustment in assets: (Land P50,000 + Goodwill P100,000) x 10%
= P150,000 x 10% = P15,000
25,000
360,000
25,000
P
75,000
10%
P 750,000
1,200,000
P( 450,000)
page6
2.
Consolidated balance of land

Less Book value of land of Pond Co.
FMV of Sands land
Less Excess of FMV over BV
BV of Sands land
P1,145,000
850,000
P 295,000
50,000
P 245,000
3.
Consolidated balance of liabilities

Less Liabilities of Pond
Liabilities of Sand
P440,000
340,000
P100,000
4.
Excess of cost over BV

Land
Goodwill
Book value (P750,000 x 90%)
Cost of investment
P 50,000
100,000
P150,000x90%
5.
Ordinary Share Capital (P800,000 x 10%)

APIC (P400,000 x 10%)
RE (P450,000 x 10%)
Adjustment in land and goodwill
Minority interest
Exercise 11 - 6
a. Total stockholders equity + asset adjustment, including goodwill
Less Minority interest (in TSE and asset adjustment)
Controlling interest
Percentage of ownership acquired (P159,375/P187,500)
b. Total stockholders' equity of Sill
Increase in fair value of assets:
Inventories
P 3,900
Plant assets
28,500
Patents
4,500
Current fair value of net identifiable assets
c.
P5,250 x 15%
d.
OS = P60,000 x 15%
APIC = P35,250 x 15%
RE = P50,100 x 15%
Share in asset adjustment
(P3,900 + P28,500 + P4,500 + P5,250) x 15%
Total
Exercise 11 - 7
a. Total current assets of Seeda = (P146,000 + P2,000) - P106,000
b.
P135,000
675,000
P810,000
P 80,000
40,000
( 45,000)
15,000
P 90,000
P187,500
28,125
P159,375
85%
P145,350
36,900
P182,250
P787.50
P 9,000.00
5,287.50
7,515.00
6,322.50
P28.125.00
P 42,000
Minority interest
Less Share in asset adjustment (P10,000 + P8,100) x 30%
Minority interest in subsidiary stockholders equity
P35,100
5,430
P29,670
Total stockholders equity of subsidiary (P29,670 / 30%)
P98,900
page7
Exercise 11 8
1. Palomar Inventory
Samar Inventory at FMV
Consolidated inventory
P1,100,000
1,700,000
P2,800,000
2.
Palomar Buildings and equipment

Samar Buildings and equipment at FMV
Consolidated buildings and equipment
3.
ZERO. It is eliminated in the consolidated balance sheet.
4.
Cost
Book value of acquired interest
(P1,000,000 + P2,000,000 P400,000 P300,000)
Excess of cost over BV
Allocation of excess:
Decrease in inventory
Increase in buildings and equipment
Goodwill
5.
P4,000,000.
company.
P3,500,000
3,750,000
P7,250,000
P2,800,000
2,300,000
P 500,000
(P100,000)
250,000
150,000
P 350,000
The Ordinary Share Capital of Palomar, the acquiring
6. P1,050,000. The Retained Earnings of Palomar, the acquiring company.

Exercise 11 - 9
Inventories
20,000
Plant Assets
80,000
Ordinary Share Capital, Santa Co.
200,000
Paid-In Capital in Excess of Par - Santa Co.
210,000
Investment in Subsidiary
Retained Earnings, Santa Co.
PROBLEMS
Problem 11 - 1
Prime Inc. and Subsidiary Slime Corp.
Working Paper for Consolidated Statement of Financial Position
January 1, 2008
Debits
Cash and Other Current Assets
Plant, Property, and Equipment
Investment in Slime Corp.
Other Assets
Goodwill
Credits
Accumulated Depreciation
Liabilities
Ordinary Share Capital, Prime
Inc.
Prime
Inc.
Slime
Corp.
400,000
200,000
380,000
30,000
300,000
250,000
1,010,000
570,000
60,000
300,000
400,000
50,000
250,000
Eliminations
Dr.
Cr.
a 380,000
20,000
a. 110,000
420,000
90,000
Consolidated
Statement of
Finl Position
700,000
450,000
-----50,000
110,000
1,310.000
110,000
550,000
400,000
Addl Paid-In Capital, Prime, Inc

Retained Earnings, Prime, Inc.
Ordinary Share Capital, Slime
Corp
Addl Paid-In Capital, Slime
Corp.
Retained Earnings, Slime Corp.
page8
180,000
70,000
1,010,000
180,000
70,000
200,000
a.200,000
40,000
a. 40,000
30,000
570,000
a. 30,000
380,000
380,000
1,310,000
Problem 11 - 2
Requirement 1
Cost
Book value of interest acquired:
Additional paid-in capital
Retained earnings
Excess of cost over book value
Inventory
Land
Equipment
Goodwill
P950,000
P200,000
100,000
400,000
P 30,000
50,000
130,000
700,000
P250,000
210,000
P 40,000
Requirement 2
Pole Co. and Subsidiary Sole Co.
January 2, 2008
Pole
Co.
Sole
Co.
Eliminations
Dr.
Cr.
Consolidated
St. of Fin Pos.
300,00
0
200,00
0
150,00
0
50,000
350,000
100,000
300,000
Debits
Cash
Accounts Receivable
Inventory
Land
Equipment
Investment in Sole Co.
Goodwill
600,00
0
950,000
60,000 a
30,000
240,000
70,000 a. 50,000
470,000 a. 130,000
120,000
1,200,000
a.
a. 40,000
2,200,000
950,000
40,000
2,250,000
750,000
Credits
Accounts Payable
100,00
0
50,000
150,000
Ord. Share Capital, Pole Co.
page9
600,00
0
1,500.000
Retained Earnings, Pole Co.

Ord. Share Capital, Sole Co.
APIC, Sole Co..
Retained Earnings, Sole Co.
600,000
1,500,000
200,000 a. 200,000
100,000 a. 100,000
a. 400.000
400,000
2,200.000
750,00
950,00
0
0
Requirement 2a
Cost
Additional paid-in capital
Retained earnings
Inventory
Land
Equipment
Negative Goodwill
950,000
2,250,000
P810,000
P200,000
100,000
400,000
P700,000 x 90%
630,000
P180,000
P 30,000
50,000
130,000
210,000
P 30,000
Pole Co. and Subsidiary Sole Co.

January 2, 2008
Debits
Cash
Accounts Receivable
Inventory
Land
Equipment
Investment in Sole Co.
Credits
Accounts Payable
Ord. Share Capital, Pole Co.
Retained Earnings, Pole Co.
Pole
Co.
Sole
Co.
300,000
200,000
150,000
50,000
100,000
60,000
70,000
470,000
600,000
950,000
Eliminations
Dr.
Minority
Interest
Consolidated
St. of Fin Pos
490,000
300,000
240,000
120,000
1,200,000
a 30,000
a. 50,000
a. 130,000
a.
810,000
2,200,000
750,000
2,250,000
100,000
600,000
1,500.000
50,000
150,000
600,000
1,530,000
Ord. Share Capital, Sole Co.

APIC, Sole Co..
Retained Earnings, Sole Co.
Minority interest
2,200.000
Problem 11 - 3
1. Inventory
Plant and Equipment
Patents
Goodwill
Ordinary Share Capital, Stork
a.
30,000
200,000
100,000
400,000
a. 180,000
a. 90,000
a. 360.000
750,000
840,00
0
20,000
10,000
40,000
70,000
840,000
30,000
100,000
50,000
50,000
80,000
70,000
2,350,000
page10
Retained Earnings, Stork

Investment
Minority Interest
200,000
464,000
46,000
Cost
Book value of int. acquired
Retained earnings
Total
Interest acquired
Gross up excess (P184,000 / 80%)
Allocation of excess;
Inventory
Plant and equipment
Patents
Goodwill
P464,000
P100,000
250,000
P350,000
80%
280,000
P184,000
P230,000
P 30,000
100,000
50,000
P
180,000
50,000
Inventory
Plant and Equipment
Patents
Goodwill
Ordinary Share Capital, Stork
Retained Earnings, Stork
Investment
2.
30,000
100,000
50,000
4,000
80,000
200,000
464,000
Inventory
Plant and Equipment
Patents
Ordinary Share Capital, Stork Co.
Retained Earnings, Stork Co.
Minority Interest
Investment
Cost
Excess of book value over cost
Increase in inventory
Increase in plant & equipment
Increase in patents
Negative Goodwill
30,000
100,000
50,000
80,000
200,000
1,500
187,500
274,000
P274,000
280,000
P 6,000
P
P 30,000
100,000
50,000
Inventory
Plant and Equipment
Patents
Ordinary Share Capital, Stork Co.
Retained Earnings, Stork Co.
Investment
7,500
180,000
P187,500
30,000
100,000
50,000
80,000
200,000
186,000
274,000
page11
Problem 11 - 4
1. Investment in Stride Co. (20,000 sh @ P10)
Ordinary Share Capital (20,000 sh @ P2)
Paid-In Capital in Excess of Par
2.
200,000
40,000
160,000
Investment in Stride Co.

Cash
30,000
Retained Earnings, Stride Co.

Goodwill
20,000
Ordinary Share Capital, Stride Co.

Paid-In Capital in Excess of Par, Stride Co.
Retained Earnings, Stride Co.
Current Assets
Plant Assets
Long-Term Debt
Goodwill
Investment in Stride Co.
25,000
50,000
55,000
5,000
40,000
10,000
45,000
30,000
20,000
230,000
Cost [(P20,000 x P10) + P30,000]

(P25,000 + P50,000 + P55,000) x 100%
Allocation of excess;
Inventories
P 5,000
Plant assets
40,000
Long-term debt
10,000
Goodwill
P230,000
130,000
P 100,000
55,000
P 45,000
Problem 11 - 5
Plow Corp. and Subsidiary Slow Co.
Working Paper for Consolidated Financial Statements
July 1, 2008
Plow
Corp.
Debits
Cash
Accounts Receivable
Notes Receivable
NR Discounted
Inventories
Prepaid Expenses
Advances to Slow Co.
Investment in Slow Co.
Property and Equipment,
net
Goodwill
Slow
Co.
15,000
25,000
70,000
10,000
20,000
45,000
(25,000)
(30,000)
50,000
15,000
25,000
60,000
8,000
93,400
85,000
Eliminations
Dr.
Cr.
(f)
(b)
(e)
8,000
10,000
20,000
(d) 10,000
(e) 20,000
Minority
Interest
Consolidated
Statement of
Finl Position
25,000
37,000
85,000
(25,000)
110,000
23,000
(g)
(a)
100,000
10,000
15,000
93,400
185,000
(a) 31,000
31,000
Credits
Current Liabilities
353,400
213,000
80,000
40,000
Advances from Plow Corp.

Loans Payable
Ordinary Share Capital ,
Plow Corp.
RE, Plow Corp.
Ordinary Share Capital,
Slow Co.
RE, Slow Co.
Minority Interest
page12
25,000
193,400
100,000
471,000
(b) 10,000
(f) 8,000
(c ) 10,000
(g) 15,000
(d)
10,000
112,000
70,000
263,400
100,000
(20,000)
53,400
50,000
(a) 40,000
10,000
28,000
(a) 22,400
5,600
15,600
213,000
174,150
Cost
(P50,000 + P28,000) x 80%
174,150
P93,400
62,400
P31,000
MULTIPLE CHOICE
11-A
1.
2.
3.
4.
5.
6.
7.
8.
B
D
B
A
C
A
D
D
11-B
1.
Cost of investment
P200,000 + P400,000 +P800,000 x 100%
Increase in FV P150,000 P50,000
Goodwill
11-C
1.
Cost of investment
FMV of net assets acquired (P815,000 P150,000)
Goodwill
11-D
1.
Cost of investment
(P7,560,000 P560,000 P3,360,000)
Negative Goodwill
11-E
1.
Number of shares issued to Roscoe

Excess of MV over par value of stock
APIC recognized upon merger
APIC of Tanner
P2,000,000
1,400,000
P 600,000
100,000
P 500,000
P765,000
665,000
P100,000
P2,968,000
3,640,000
P 672,000
100,000
x P8.00
P800,000
650,000
(20,000)
10,000
15,600
471,000
page13
APIC reflected in the Consolidated Statement of Finl Pos

11-F
11-G
11-H
11-I
1.
Investment (P 26,000 @ 100)

P1,450,000
2,600,000
2,600,000
1.
1,080 (P180,000/P100)
2.
Cost of investment
[(P180,000 + P50,000 + P30,0000) x 60%]
P 161,200
P 104,000
2.080
P106,080
3.
(P180,000 + P50,000 + P30,000) x 40%

(P5,200 x 40%)
Total
1.
(P120,000 P120) (P125,000 P100)
2.
(P125,000 + P50,000) x 20%
3.
Cost
Book value of interest acquired (P175,000 x 80%)
Excess of book value over cost
4.
1.
Cost
(P10,000 + P32,350) x 80%
Goodwill
60%
P
P
80%
P35,000
P120,000
140,000
( P20,000)
40,000
33,880
6,120

Controlling interest (P7,650 x 80%)
Minority interest (P7,650 x 20%)
2.
Ordinary Share Capital (P10,000 x 80%)

Retained earnings (P32,350 x 80%)
3.
(P10,000 + P32,350) x 20%

Add Share in goodwill
Total
4.
11-J
1.
Cost (P100,000 x P10)

FMV of net tangible assets
Negative Goodwill reported in the consolidated statement of
financial position as part of Parent Company Retained
Earnings
11-K
1.
Minority interest in subsidiary TSE (P550,000 x 20%)

Add Adjustment of assets
156,000
5,200
8,667
P7,650
P6,120
P1,530
P 8,000
P 25,880
P
8,470
1,530
P 10,000
P1,000,000
1,400,000
P 400,000
P110,000
2.
page14
(P120,000 + P100,000 + P130,000) 20%

Total
70,000
P180,000
Minority interest
Add adjustment of assets
Total
P110,000
44,000
P154,000
Cost of investment
Book value of investment (P550,000 x 80%)
Inventory
PPE
Goodwill
P720,000
440,000
P280,000
P120,000
100,000
220,000
P60,000
1.
P100,000 20%
P 500,000
2.
P500,000 x 80%
P 400,000
11-M
1.
2.
A
A
P500,000 + P45,000
(P500,000 x 90%) + P45,000
P 545,000
P 495,000
11-N
1.
Cost (4,500 @ P140)

(P500,000 + P125,000) x 90%
Excess of cost over book value treated as goodwill
Assets of Panda and Selina [(P3.125,000 P630,000) +
P875,000)]
Combined assets
11-L
11-O
11-P
1.
2.
P 630,000
P
562,500
67,500
3,370,000
P3,437,500

Land (P150,000 P100,000 )
Goodwill
P 36,000
P60,000
50,000
P 10,000
P 80,000
24,000
P104,000
3.
Minority interest in subsidiary TSE (P200,000 x 40%)

Add Share in adjustment of assets (P50,000 + P 10,000) 40%
Total
1.
Total assets of Plant and Slant

Less: Amount paid for investments
Total assets to be reported in the consolidated balance sheet
P5,250,000
1,425,000
P3,600,000
2.
P3,000,000 + P600,000
P3,600,000
3.
Cost
BV of interest acquired (P750,000 +P900,000) x 80%
P1,710,000
1,320,000
page15
11-Q 1.
11-R
P487,500
Minority interest %
Share of minority interest in the adjustment
Minority interest in subsidiary TSE
Total
20%
P 97,000
330,000
P427,500
Cost
(P200,000 + P400,000 + P1,200,000) x 100%
Decrease in inventories
(P100,000)
Increase in PPE
200,000
Goodwill
2.
The retained earnings of the parent company, Plumber.
1.
Total current assets of Polka and Stress

Excess of investment cost over its book value
allocated to inventory
Cost
Book value (P50,000 x 90%)
2.
3.
4.
11-S
P 390,000
P3,000,000
1,800,000
P1,200,000
100,000
P1,100,000
90,000
P60,000
45,000
P15,000
Portion allocated to inventory

Current assets in the consolidated balance sheet
10,000
P100,000
Noncurrent assets of Polka and Stress

Excess of investment cost over its book value
allocated to goodwill (P15,000 P10,000)
Noncurrent assets in the consolidated balance sheet
P 130,000
Minority interest (P50,000 x 10%)

Share in assets adjustments (P10,000 x 10%)
Total
Long-term debt of Polka, Jan. 1, 2008

Long-term borrowings made on Jan. 2, 2008
(P60,000 x 9/10)
Total
P 50,000
54,000
P104,000
P420,000
1.
(P1,460,000 + P20,000) P1,060,000
2.
Minority interest
Parent shareholders equity
Total
5,000
P 135,000
5,000
1,000
6,000
351,000
4,610,000
P4,961,000
page16

AA2 Chapter 11 Sol

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AA2 Chapter 11 Sol

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CHAPTER 11

Ordinary Share Capital, Sing Co.

Ordinary Share Capital, Sing Co.

Ordinary Share Capital, Sing Co.

Ordinary Share Capital, Sing Co.

Chapter 11 Suggested Answers (AA2.2006)

Ordinary Share Capital, Sing Co.

Chapter 11 Suggested Answers (AA2.2006)

Ordinary Share Capital, Soya Co.

Chapter 11 Suggested Answers (AA2.2006)

Investment in Sax Co.

Ordinary Share Capital, Sax Co.

Chapter 11 Suggested Answers (AA2.2006)

Retained Earnings, Sax Co.

Ordinary Share Capital, Sax Co.

Investment in Sax Co.

Ordinary Share Capital, Sax Co.

Cost (3,000 x P120)

Chapter 11 Suggested Answers (AA2.2006)

Consolidated balance of land

Consolidated balance of liabilities

Excess of cost over BV

Ordinary Share Capital (P800,000 x 10%)

Total stockholders equity of subsidiary (P29,670 / 30%)

Chapter 11 Suggested Answers (AA2.2006)

Palomar Buildings and equipment

ZERO. It is eliminated in the consolidated balance sheet.

The Ordinary Share Capital of Palomar, the acquiring

6. P1,050,000. The Retained Earnings of Palomar, the acquiring company.

Chapter 11 Suggested Answers (AA2.2006)

Addl Paid-In Capital, Prime, Inc

Chapter 11 Suggested Answers (AA2.2006)

Ord. Share Capital, Pole Co.

Retained Earnings, Pole Co.

Pole Co. and Subsidiary Sole Co.

Ord. Share Capital, Sole Co.

Chapter 11 Suggested Answers (AA2.2006)

Retained Earnings, Stork

Chapter 11 Suggested Answers (AA2.2006)

Investment in Stride Co.

Retained Earnings, Stride Co.

Ordinary Share Capital, Stride Co.

Cost [(P20,000 x P10) + P30,000]

Chapter 11 Suggested Answers (AA2.2006)

Advances from Plow Corp.

Number of shares issued to Roscoe

Chapter 11 Suggested Answers (AA2.2006)

APIC reflected in the Consolidated Statement of Finl Pos

Investment (P 26,000 @ 100)

(P180,000 + P50,000 + P30,000) x 40%

(P120,000 P120) (P125,000 P100)

(P125,000 + P50,000) x 20%

Gross up excess (P6,120 / 80%)

Ordinary Share Capital (P10,000 x 80%)

(P10,000 + P32,350) x 20%

Cost (P100,000 x P10)

Minority interest in subsidiary TSE (P550,000 x 20%)

Chapter 11 Suggested Answers (AA2.2006)

(P120,000 + P100,000 + P130,000) 20%

Cost (4,500 @ P140)

Excess of cost over book value

Minority interest in subsidiary TSE (P200,000 x 40%)

Total assets of Plant and Slant