Bagz-bags Corp. issued on March 31, 2032, 400,000 shares of its P12 par value ordinary shares,P40 market value per share, to acquire all of the outstanding P25 par value ordinary shares ofShu-shoes Corporation and 110,000 shares of the same P12 par ordinary shares for alloutstanding P50 par value ordinary shares of Accessory Corp. on this date, the fair value of Shu-shoes's assets and liabilities equaled their book values, except for the longterm investment inmarketable equity securities for which the aggregate market value exceeded cost by P500,000.The fair value of Accessory's assets and liabilities equaled their book values except for property.plant and equipment which is P700,000 less than the carrying value and inventories which isP100,000 more than carrying value.On March 31, 2032, immediately before the combination, the shareholders' equities were:Shu-shoes Corp.Accessory Corp.Ordinary Shares. P5,500,000.P2,500,000Share Premium. 4,200,000470,000Retained Earnings. 7,360,000.2,430,000Total.P17,060,000.P5,400,0001) The goodwill as a result of the combination is2) The gain on acquisition to be recorded in the books of Bagz-bags Corp. (result of thecombination) is.3.) The total Shareholders' Equity of the subsidiary companies ( from their separatefinancial statements) at the date of acquisition is .

A business combination occurs when two or more separate entities merge to form a single entity or…

1) The goodwill as a result of the combination is 2) The gain on acquisition to be recorded in the books of Bagz-bags Corp. (result of the combination) is 3.) The total Shareholders' Equity of the subsidiary companies (from their separate financial statements) at the date of acquisition is_

1) The goodwill as a result of the combination is 2) The gain on acquisition to be recorded in the books of Bagz-bags Corp. (result of the combination) is 3.) The total Shareholders' Equity of the subsidiary companies (from their separate financial statements) at the date of acquisition is_

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Bagz-bags Corp. issued on March 31, 2032, 400,000 shares of its P12 par value ordinary shares,
P40 market value per share, to acquire all of the outstanding P25 par value ordinary shares of
Shu-shoes Corporation and 110,000 shares of the same P12 par ordinary shares for all
outstanding P50 par value ordinary shares of Accessory Corp. on this date, the fair value of Shu-
shoes's assets and liabilities equaled their book values, except for the longterm investment in
marketable equity securities for which the aggregate market value exceeded cost by P500,000.
The fair value of Accessory's assets and liabilities equaled their book values except for property.
plant and equipment which is P700,000 less than the carrying value and inventories which is
P100,000 more than carrying value.
On March 31, 2032, immediately before the combination, the shareholders' equities were:
Shu-shoes Corp.
Accessory Corp.
Ordinary Shares. P5,500,000.
P2,500,000
Share Premium. 4,200,000
470,000
Retained Earnings. 7,360,000.
2,430,000
Total.
P17,060,000.
P5,400,000
1) The goodwill as a result of the combination is
2) The gain on acquisition to be recorded in the books of Bagz-bags Corp. (result of the
combination) is.
3.) The total Shareholders' Equity of the subsidiary companies ( from their separate
financial statements) at the date of acquisition is .

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