Make a calculation comparing the consideration given against the book value of the consideration acquired.Assume that 100% stake in the XYZ co.s equity is to be paid in cash. Assume that AAA Co. plans to acquire XYZ Co. As its subsidiary on April 30, 2022.Below are the statements of financial position of the two companies before the acquisition is made:AAA Co. and XYZ Co.Statement of financial positionApril 30, 2022.AAA Co.XYZ Co.AssetsCurrent AssetsCash1,675,300900,250715,350250,125180,37581,00015,000526,500Trade ReceivablesInventoryPrepaymentsTotal Current Assets120,0003,410,900Non-current AssetsEquipment (net)1,635,000639,250120,000759,250Other Assets110,0001,745,000Total Non-crrent Asset:Total Assets5,155,9001,285,750Liabilities and EquityLiabilitiesCurrent LiabilitiesTrade PayablesLoan Payable -current portion911,000275,0001,186,000305,620Total Current Liabilities305,620Non-Current LiabilityLoan Payable -non-current portTotal Non-cusrent Liabili825,000825,0002,011,000Total Liabilities305,620EquityCommon Stock2,000,000800,000500,000350,000Additional Paid-in CapitalRetained EarningsTotal Equity344,9003,144,900130,130980,130Total Liabilities and Equity5,155,9001,285.750 Make a calculation comparing the consideration given against the book value of the consideration acquired.Assume that 100% stake in the XYZ co.s equity is to be paid in cash.5 Question: How much is the amount of cash to be paid by AAA Co. To Xyz Co.?B Solution:o Consideration given:1234

Net Consideration = Net assets acquired - liabilities

Make a calculation comparing the consideration given against the book value of the consideration acquired. Assume that 100% stake in the XYZ co.s equity is to be paid in cash. Question: How much is the amount of cash to be paid by AAA Co. To Xyz Co.? Solution: Consideration given:

Make a calculation comparing the consideration given against the book value of the consideration acquired. Assume that 100% stake in the XYZ co.s equity is to be paid in cash. Question: How much is the amount of cash to be paid by AAA Co. To Xyz Co.? Solution: Consideration given:

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

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Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 37RQSC

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Make a calculation comparing the consideration given against the book value of the consideration acquired.
Assume that 100% stake in the XYZ co.s equity is to be paid in cash.