. On January 1 2021,NOP acquires 100% interest in QRS in exchange for NOP's 10,000 shares with par value per share of P20 and fair value per share of P200. QRS's net identifiable assets have fair value of P1,920,000 and a book value of P1,850,000. In addition, NOP agrees to provide an additional payment of P400,000 if QRS's 2021 net income will except P3,600,000. The fair value of the contingent consideration is P280,000. The net identifiable asset of NOP have a book value of P3,250,000 and the fair value of P3,375,000. Compute for the consolidated net identifiable asset after the acquisition.
. On January 1 2021,NOP acquires 100% interest in QRS in exchange for NOP's 10,000 shares with par value per share of P20 and fair value per share of P200. QRS's net identifiable assets have fair value of P1,920,000 and a book value of P1,850,000. In addition, NOP agrees to provide an additional payment of P400,000 if QRS's 2021 net income will except P3,600,000. The fair value of the contingent consideration is P280,000. The net identifiable asset of NOP have a book value of P3,250,000 and the fair value of P3,375,000. Compute for the consolidated net identifiable asset after the acquisition.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:5. On January 1 2021,NOP acquires 100% interest in QRS
in exchange for NOP's 10,000 shares with par value per
share of P20 and fair value per share of P200. QRS's net
identifiable assets have fair value of P1,920,000 and a
book value of P1,850,000. In addition, NOP agrees to
provide an additional payment of P400,000 if QRS's
2021 net income will except P3,600,000. The fair value of
the contingent consideration is P280,000. The net
identifiable asset of NOP have a book value of
P3,250,000 and the fair value of P3,375,000. Compute
for the consolidated net identifiable asset after the
acquisition.
AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed
Statement of Financial Position before the combination show:
AAA Inc.
ввв Согр.
Cash
88,000
88,000
Accounts Receivable, net
Inventory
Property Plant and Equipment
Patent
500,000
420,000
1,700,000
4,654,000
1,119,600
1,040,000
260,000
171,600
Accounts Payable
Mortgage Payable
Capital Stock, par P100
1,000,000
1,704,000
2,600,000
390,000
1,248,000
1,300,000
390,000
1,066,000
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Retained Earnings
As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant
and equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA purchases BBB's net asset for P4,000,000.
Compute for the consolidated asset after acquisition.
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