combination was considered to be a tax-free merger. Included in the assets is a building withan appraised value of P210,000 on the date of the business combination. This asset had aoook yolue of P70,000, based on the use of accelerated depreciation for accountingenoses, The building had an adjusted tax basis to Atlantic (and to Vibe as a result of thePu of P120,000. Assuming a 36% income tax rate, at what amount should Vibe recordhis building on its books after the purchase?a. P120,000b. P134,400C.P140,000d.P210,000

81. Vibe company purchased net assets of Atlantic company. Good will also recorded after purchase.…

B1. Vibe Company purchased the net assets of Atlantic Company in a business combination occounted for as a purchase. As a result, goodwill was recorded. For tax purposes, this combination was considered to be a tax-free merger. Included in the assets is a building with an appraised value of P210,000 on the date of the business combination. This asset had a opue of P70.000, based on the use of accelerated depreciation for accounting purposes. The building had an adjusted tax basis to Atlantic (and to Vibe as a result of the Pod of P120,000. Assuming a 36% income tax rate, at what amount should Vibe record nis building on its books after the purchase? a P120,000 P134,400 C. P140,000 d. P210,000

B1. Vibe Company purchased the net assets of Atlantic Company in a business combination occounted for as a purchase. As a result, goodwill was recorded. For tax purposes, this combination was considered to be a tax-free merger. Included in the assets is a building with an appraised value of P210,000 on the date of the business combination. This asset had a opue of P70.000, based on the use of accelerated depreciation for accounting purposes. The building had an adjusted tax basis to Atlantic (and to Vibe as a result of the Pod of P120,000. Assuming a 36% income tax rate, at what amount should Vibe record nis building on its books after the purchase? a P120,000 P134,400 C. P140,000 d. P210,000

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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