1. Rivendellpaid finder's fees of P40,00O, accountant's fee (Advisory) of P10,000,legal fees (advisory) of P15,000, salaries of Rivendell's employees assignedto the implementation of the merger of P16,000, cost of closing duplicatefacilities of P12,000, cost of shareholder's meeting to vote on the mergerof P14,000, cost of printing stock certificates of P7,000, audit andaccountant's fee related to the stock issuancè of P3,000, SEC registrationfee of P5,000 and stock listing application fees of P4,00O. Based on thepreceding information, under the acquisition method following PFRS 3,what amount relating to the business combination would be expensed?С.d.P42,00050,000P107,000124,000a.b.2. Using the same information in No. 1:P44,000 of stock issue costs are treated as a reduction in theissue price.b.a.P19,000 of stock issue costs are treated as a reduction in theissue price.P19,000 of stock issue costs are expensed.C.d.P44,000 of stock issue costs are expensed.

Answer: As per given data - Rivendell paid finder’s fee P 40,000.00, accountant’s fee (Advisory) of…

1. Rivendell paid finder's fees of P40,000, acCountant's fee (Advisory) of P10,000, legal fees (advisory) of P15,000, salaries of Rivendell's employees assigned to the implementation of the merger of P16,000, cost of closing duplicate facilities of P12,000, cost of shareholder's meeting to vote on the merger of P14,000, cost of printing stock certificates of P7,000, audit and accountant's fee related to the stock issuance of P3,000, SEC registration fee of P5,000 and stock listing application fees of P4,000. Based on the preceding information, under the acquisition method following PFRS 3 what amount relating to the business combination would be expensed P42,000 50,000 C. d. P107,000 124,000 a. b.

1. Rivendell paid finder's fees of P40,000, acCountant's fee (Advisory) of P10,000, legal fees (advisory) of P15,000, salaries of Rivendell's employees assigned to the implementation of the merger of P16,000, cost of closing duplicate facilities of P12,000, cost of shareholder's meeting to vote on the merger of P14,000, cost of printing stock certificates of P7,000, audit and accountant's fee related to the stock issuance of P3,000, SEC registration fee of P5,000 and stock listing application fees of P4,000. Based on the preceding information, under the acquisition method following PFRS 3 what amount relating to the business combination would be expensed P42,000 50,000 C. d. P107,000 124,000 a. b.

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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Question

1. Rivendellpaid finder's fees of P40,00O, accountant's fee (Advisory) of P10,000,
legal fees (advisory) of P15,000, salaries of Rivendell's employees assigned
to the implementation of the merger of P16,000, cost of closing duplicate
facilities of P12,000, cost of shareholder's meeting to vote on the merger
of P14,000, cost of printing stock certificates of P7,000, audit and
accountant's fee related to the stock issuancè of P3,000, SEC registration
fee of P5,000 and stock listing application fees of P4,00O. Based on the
preceding information, under the acquisition method following PFRS 3,
what amount relating to the business combination would be expensed?
С.
d.
P42,000
50,000
P107,000
124,000
a.
b.
2. Using the same information in No. 1:
P44,000 of stock issue costs are treated as a reduction in the
issue price.
b.
a.
P19,000 of stock issue costs are treated as a reduction in the
issue price.
P19,000 of stock issue costs are expensed.
C.
d.
P44,000 of stock issue costs are expensed.

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