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  3. on january 1, 2021, abc co. acquired 70% interest

On January 1, 2021, ABC Co. acquired 70% interest in XYZ Co. The financial statements...

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Accounting

On January 1, 2021, ABC Co. acquired 70% interest in XYZ Co. The financial statements of the combining entities right after the business combinations are as follows:

ABC Co. XYZ Co.
Cash 100,000 20,000
Account Receivable 120,000 40,000
Inventory 400,000 100,000
Investment in Subsidiary 560,000
Prepaid Assets 30,000 10,000
Building, Net 1,200,000 400,000
Total Assets 2, 410,000 570,000
Accounts Payable 70,000 90,000
Share Capital 1,000,000 200,000
Share Premium 350,000 50,000
Retained Earnings 990,000 230,000
Total Liabilities and Equity 2,410,000 570,000

The carrying amounts of XYZ's Assets and Liabilities approximate the acquisition date fair values , except as follows:

Carrying Amount Fair value
Accounts Receivable 40,000 20,000
Building, net 400,000 540,000

ABC measured the NCI at proportionate share Requirement: Prepare the consolidated statement of financial position.

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