Determine the fair value of consideration transferred on the business combination? How many shares were issued in the business combination? On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of theliabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date isshown below: (see image below) Additional information: 1. ABC Co's share capital consists of60,000 ordinary shares with par value of P40 per share. 2. XYZ's share capital consists of3,000 ordinary shares with par value of P400 per share.Determine the fair value of consideration transferred on the business combination?АВС СоXYZ IncCombined(carrying amounts) (fair values)Identifiable assets9,600,0006,400,00016,000,000GoodwillTotal assets9,600,0006,400,000?Liabilities2,800,0002,400,0003,600,0006,400,0002,800,000Share capitalShare premiumRetained earningsTotal liabilities & equity1,200,0001,200,0003,200,0009,600,0001,000,000600,0004,800,0006,400,000?

solution given Number of ABC co’s share 60000 Par value per share 40 Fair value of…

Answered: Determine the fair value of…

Determine the fair value of consideration transferred on the business combination? How many shares were issued in the business combination

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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