Please answer my question 2. Ariadne Corporation acquired the net assets of Turgo Corporation by issuing 10,000 ordinary shares withliability at amortized cost.At the time of acquisition, the ordinary shares are publicly quoted at P20 per share. On the other hand, thebonds payable, classified as financial liability at amortized cost, are trading at 110.Ariadne paid P10,0000 share issuance costs and P20,000 bond issue costs. It also paid P40,000 acquisitionrelated costs and P30,000 indirect costs of business combination.Before the date of acquisition, Ariadne and Turgo reported the following data:AriadneTurgoCurrent assetsNon-current assetsCurrent liabilities1,000,0002,000,000200,000300,000500,0001,200,000800,000500,0001,000,000400,000500,000Non-current liabilitiesOrdinary sharesShare premiumRetained earnings200,000300,000100,000At the time of acquisition, the current assets of Ariadne have fair value of P1,200,000, while the non-currentassets of Turgo have fair value of P1,300,000. On the same date, the current liabilities of Turgo have fairvalue of P600,000 while the non-current liabilities of Ariadne have fair value of P500,000.Required:1. Determine the goodwill or gain on bargain purchase from the above transaction.02 Task Performance 1"Property of STIPage 2 of 3ASTIBM22. Give the adjusting entries that will be made on the book of Ariadne3. Prepare the SFP of Ariadne after the merger. 1. On January 1, 20X2, Tanangonan Company acquired all the assets and assumed all the liabilities of OngCompany. In exchange for the net assets of Ong, Tanangonan gave its bond payable with a maturity valueof P600,000 with a stated rate of 10% interest payable semiannually on June 30 and December 31. Thesaid bond will also mature on January 1, 20X2, and has a yield rate of 12%.The Statement of Financial Position (SFP) of both companies as of January 1, 20X2 were as follows:TanangonanBook ValueÔngBook ValueFair ValueCashP250,000352,700P114,000150,000232,000100.000410.000P114,000Receivables135,000310,000315.00054,900InventoriesLandBuildingsAccumulated Depreciation – BuildingsEquipmentAccumulated Depreciation - EquipmentTotal Assets848,300700,000950,000(325,000)262,750(70,050)P2,968,700(170,500)136,450(90,450)39,450P881,500P968,350Current LiabilitiesP95.300P95,300300,000P292,700Bond PayableCommon Stock, P15 par valueCommon Stock, P5 par valueOther Contributed CapitalRetained EarningsTotal Equities260,0001,200,000236,500950,000526,000P2,968,750170.00079,700P881,500Required:1. Determine the goodwill or gain on bargain purchase from the above acquisition.2. Give the adjusting entries that will be made on the book of Tanangonan.02 Task Performance 1*Property of STIPage 1 of 3STIM20103. Prepare the Statement of Financial Position (SFP) of Tanangonan after the merger.

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2. Ariadne Corporation acquired the net assets of Turgo Corporation by issuing 10,000 ordinary shares with par value of P10 and bonds payable with a face amount of P500,000. The bonds are classified as financial liability at amortized cost. At the time of acquisition, the ordinary shares are publicly quoted at P20 per share. On the other hand, the bonds payable, classified as financial liability at amortized cost, are trading at 110. Ariadne paid P10,0000 share issuance costs and P20,000 bond issue costs. It also paid P40,000 acquisition related costs and P30,000 indirect costs of business combination. Before the date of acquisition, Ariadne and Turgo reported the following data: Ariadne Turgo Current assets Non-current assets Current liabilities Non-current liabilities Ordinary shares Share premium Retained earnings 1,000,000 2,000,000 200,000 300,000 500,000 1,200,000 800,000 500,000 1,000,000 400,000 500,000 200,000 300,000 100,000 At the time of acquisition, the current assets of Ariadne have fair value of P1,200,000, while the non-current assets of Turgo have fair value of P1,300,000. On the same date, the current liabilities of Turgo have fair value of P600,000 while the non-current liabilities of Ariadne have fair value of P500,000. Required: 1. Determine the goodwill or gain on bargain purchase from the above transaction. 02 Task Performance 1 "Property of STI Page 2 of 3 STI BM2010 2. Give the adjusting entries that will be made on the book of Ariadne 3. Prepare the SFP of Ariadne after the merger.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q