Acquirer Company issued new shares of its P5 par value ordinary shares valued at P12 per share in exchange for 90% outstanding shares (P2 par value) of Acquiree Company on March 31, 2022. The fair value and book value of Acquiree’s identifiable assets and liabilities were the same except inventory which was understated by P30,000 and equipment which was overstated by P90,000. The financial statements of Acquirer and Acquiree were (see image below). Acquirer incurred the following costs: Legal fees – P11,200; Audit fees for SEC registration of share issue - P5,000; Brokerage fee - P2,500; and Accountant fee for pre-acquisition audit – P15,000. The parent opted to measure NCI using proportionate share and the business combination resulted to a goodwill of P99,000. Answer the following: a. How much is the Consolidated Assets? b. How much is the Consolidated Equity? c. How many is the Number of Shares Issued?
Acquirer Company issued new shares of its P5 par value ordinary shares valued at P12 per share in exchange for 90% outstanding shares (P2 par value) of Acquiree Company on March 31, 2022. The fair value and book value of Acquiree’s identifiable assets and liabilities were the same except inventory which was understated by P30,000 and equipment which was overstated by P90,000. The financial statements of Acquirer and Acquiree were (see image below).
Acquirer incurred the following costs: Legal fees – P11,200; Audit fees for SEC registration of share issue - P5,000; Brokerage fee - P2,500; and Accountant fee for pre-acquisition audit – P15,000. The parent opted to measure NCI using proportionate share and the business combination resulted to a
Answer the following:
a. How much is the Consolidated Assets?
b. How much is the Consolidated Equity?
c. How many is the Number of Shares Issued?
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