PROBLEM IOn January 2, 2020, P Company purchased the net assets of S Company by paying P850,000 cash and issuing shares of stocks atP3,110,000 fair market value. Book value and fair value data on the Statement of Financial Position on January 2, 2020 are as follows:P CompanyS CompanyBook Value4,600,0001,000,0001,500,0001,800,000Fair Value4,600,0001,000,0001,300,0001,460,000Book Value300,000980,000710,0001,520,00090,0003,600,000 3,024,000Fair Value300,000980,000600,0001,064,00080,000CashAccounts ReceivableInventoryBuilding, netGoodwillTotal8,900,0008,360,000LiabilitiesShare CapitalShare PremiumRetained EarningsTotal1,000,0001,600,0001,000,000570,000900,0005,400,0008,900,000570,000600,000960,0001,470,0003,600,000P incurred and paid legal and brokerage fees of P25,600 for business combination; share issue costs of P23,000 indirect acquisition costs.It is determinable that contingency fee of P11,800 would be paid within the year.1. The total assets after the business combination is2. The total shareholder's equity after the business combination is

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PROBLEM I On January 2, 2020, P Company purchased the net assets of S Company by paying P850,000 cash and issuing shares of stocks at P3,110,000 fair market value. Book value and fair value data on the Statement of Financial Position on January 2, 2020 are as follows: P Company S Company Fair Value Book Value 4,600,000 1,000,000 1,500,000 1,800,000 Fair Value 4,600,000 1,000,000 1,300,000 1,460,000 Book Value Cash Accounts Receivable Inventory Building, net Goodwill Total 300,000 980,000 710,000 1,520,000 90,000 3,600,000 3,024,000 300,000 980,000 600,000 1,064,000 80,000 8,900,000 8,360,000 Liabilities Share Capital Share Premium Retained Earnings Total 1,000,000 1,600,000 900,000 5,400,000 8,900,000 1,000,000 570,000 600,000 960,000 1,470,000 3,600,000 570,000 P incurred and paid legal and brokerage fees of P25,600 for business combination; share issue costs of P23,000 indirect acquisition costs. It is determinable that contingency fee of P11,800 would be paid within the year. 1. The total assets after the business combination is 2. The total shareholder's equity after the business combination is

PROBLEM I On January 2, 2020, P Company purchased the net assets of S Company by paying P850,000 cash and issuing shares of stocks at P3,110,000 fair market value. Book value and fair value data on the Statement of Financial Position on January 2, 2020 are as follows: P Company S Company Fair Value Book Value 4,600,000 1,000,000 1,500,000 1,800,000 Fair Value 4,600,000 1,000,000 1,300,000 1,460,000 Book Value Cash Accounts Receivable Inventory Building, net Goodwill Total 300,000 980,000 710,000 1,520,000 90,000 3,600,000 3,024,000 300,000 980,000 600,000 1,064,000 80,000 8,900,000 8,360,000 Liabilities Share Capital Share Premium Retained Earnings Total 1,000,000 1,600,000 900,000 5,400,000 8,900,000 1,000,000 570,000 600,000 960,000 1,470,000 3,600,000 570,000 P incurred and paid legal and brokerage fees of P25,600 for business combination; share issue costs of P23,000 indirect acquisition costs. It is determinable that contingency fee of P11,800 would be paid within the year. 1. The total assets after the business combination is 2. The total shareholder's equity after the business combination is

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 92.4C

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