9,714,90 ABC Corp. (qualify as SME) issued 120,000 shares of P25par ordinary share for all outstanding shares of XYZ in a business combination consummated on January 1, 2022. ABC's ordinary share was selling at P40 per share at the time of the consummation of the combination. XYZ's net asset is P4.2 million at book value (fair value 4.439M). The difference is due to inventory with fair value higher by P59,000 than its book value and the balance is to equipment with remaining useful life of 6 years. Out of pocket expenses of the combination were as follows: Legal Fees: For business combination For SEC registration SEC registration costs Printing costs of share certificates Finder's fee CPA audit fee for SEC registration 2314002 12,000 14,500 18,200 9,400 27,000 19,000 Net income reported by ABC and XYZ for 2022 is P1,200,000 and P500,000, respectively. The Share Capital and Retained Earnings of ABC is P1,500,000 and P700,000, respectively. How much is the consolidated net income for 2022?

9,714,90 ABC Corp. (qualify as SME) issued 120,000 shares of P25par ordinary share for all outstanding shares of XYZ in a business combination consummated on January 1, 2022. ABC's ordinary share was selling at P40 per share at the time of the consummation of the combination. XYZ's net asset is P4.2 million at book value (fair value 4.439M). The difference is due to inventory with fair value higher by P59,000 than its book value and the balance is to equipment with remaining useful life of 6 years. Out of pocket expenses of the combination were as follows: Legal Fees: For business combination For SEC registration SEC registration costs Printing costs of share certificates Finder's fee CPA audit fee for SEC registration 2314002 12,000 14,500 18,200 9,400 27,000 19,000 Net income reported by ABC and XYZ for 2022 is P1,200,000 and P500,000, respectively. The Share Capital and Retained Earnings of ABC is P1,500,000 and P700,000, respectively. How much is the consolidated net income for 2022?

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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