BA 118.2 Comprehensive problem Indirect Holdings On July 1, 2xx4, Mama, Inc. acquired 80% of the shares of Ate Corp.

for P218,640. On the same day, Ate Corp. acquired 75% of the shares of Bunso Company for P129,050. At this date, an extract from the balance sheets of Ate Corp and Bunso Company disclosed the following:
Com onst m ock A d ion p incap al d it al aid it Reain earn g t ed in s A te 2 0 0 .0 4 ,0 0 0 8 0 .0 ,0 0 0 1 0 .0 ,6 0 0 Bu so n 1 4 0 .0 6 ,0 0 0 2 0 .0 ,4 0 0

Additional Information: Bunso Company On July 1, 2xx4, all the identifiable assets and liabilities of Bunso were recorded at fair market value except for the non monetary assets. A comparison of the non-monetary assets carrying amounts and fair values revealed the following information:
In nory ve t Plan (c P1 0 0 ) t ost 6 ,0 0 Lan d CV 5 0 .0 ,0 0 0 1 8 0 .0 2 ,0 0 0 5 ,0 0 0 6 0 .0 FM V 6 0 .0 ,0 0 0 1 3 0 .0 3 ,0 0 0 6 ,0 0 0 0 0 .0

The plant was expected to provide further benefits evenly over the next five years. All inventory was sold by June 30, 2xx5. The fair market value of the non-controlling interest of Bunso Company is P44,100. Ate Corporation On July 1, 2xx4, all the identifiable assets and liabilities of Ate were recorded at fair market value except for the following:
In t venory Plan (c P1 7 0 ) t ost 4 ,0 0 CV 6 0 .0 ,0 0 0 1 6 0 .0 2 ,0 0 0 FM V 8 0 0 ,00 .0 10 0 0 3 ,00 .0

The fair market value of the non-controlling interest of Ate Corporation is P51,120. Year 2xx6 The financial data as at June 30, 2xx6 of the three companies are attached. Additional information 1. Sales and purchases included the following transactions: Sales by Ate to Mama invoiced at cost plus 33 1/3% were P120,000. Sales by Bunso to Mama invoiced at cost plus 25% were P36,000. 2. Inventory on hand of Mama at June 30, 2006 included P1,600 acquired from Ate and P1,200 acquired from Bunso. 3. Inventory of Ate at July 1, 2005 included P160 profit on goods received from Bunso.

4. Receivables and payables included P3,600 owed by Mama to Ate. 5. In 2005, Mama issued 8% bonds at par. On the same date, Ate and Bunso acquired some of Mamas bonds.