Brewer Company acquired all of the outstanding ordinary shares of an acquiree paying P12,000,000 cash. The carrying amount and fair value of the assets and liabilities of the acquire were: Carrying amount Fair value Accounts receivable. Inventory 1,800,000 2,000,000 Property, plant and equipment 2,700,000 5,000,000 Accounts payable 10,000,000 13,000,000 Bonds payable 3,000,000 3,000,000 4,500,000 3,500,000 What amount should be recognized as gain on bargain purchase? a. 2,500,000 b. 8.000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1
1
16900
2,400.00
10.00
Brewer Company acquired all of the outstanding ordinary
shares of an acquiree paying P12,000,000 cash. The carrying
amount and fair value of the assets and liabilities of the
acquire were:
Carrying amount
Fair value
Accounts receivable.
Inventory
1,800,000
2,000,000
Property, plant and equipment
2,700,000
5,000,000
Accounts payable
10,000,000
13,000,000
Bonds payable
3,000,000
3,000,000
4,500,000
3,500,000
What amount should be recognized as gain on
purchase?
bargain
a: 2,500,000
b. 8,000,000
C. 1,500,000
d.
0
964
OI A
2017
2018
2019
2020
2021
Goodwill
with nor
What am
Compan
a. 2,535
b. 2,100
c. 2,315
d. 2,305
Transcribed Image Text:1 1 16900 2,400.00 10.00 Brewer Company acquired all of the outstanding ordinary shares of an acquiree paying P12,000,000 cash. The carrying amount and fair value of the assets and liabilities of the acquire were: Carrying amount Fair value Accounts receivable. Inventory 1,800,000 2,000,000 Property, plant and equipment 2,700,000 5,000,000 Accounts payable 10,000,000 13,000,000 Bonds payable 3,000,000 3,000,000 4,500,000 3,500,000 What amount should be recognized as gain on purchase? bargain a: 2,500,000 b. 8,000,000 C. 1,500,000 d. 0 964 OI A 2017 2018 2019 2020 2021 Goodwill with nor What am Compan a. 2,535 b. 2,100 c. 2,315 d. 2,305
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