Ideal Corporation is a company involved in manufacturing mining equipment. At the beginning of the year, theboard of directors of the said company has decided to enter into a business combination with Superior Corporationand Bright Corporation, top suppliers of materials in the mining industry which they use in production. Ihe.said acquisition is expected to result in producing higher quality mining equipment with lower total cost. The dealwas closed on February 28, 2018 and the following informati on was gathered from the books of the entities:SUPERIORP2,340,00015,300,000P17,640,000BRIGHTP1,560,00010,200,000P11,760,000IDEA LP8,250.00018,750,000P27,000.000.Current assetsNon-current assetsTotal AssetsLiabiliti esOrdinary shares, P100 ParShare premiumRetain ed EarningsTotal equitiesP1,950.00016,491,0001,059,0007,500,000P27,0.00.000P1,260,00010,681,2001,018,8004,680,000P17,640,000P840,0007,120,800679,2003,120,000P11,760,000Ideal will issue 135,000 of its ordinary shares in exchange for the acquisition of Superior and 67,200 of its ordinaryshares in exchange for the acquisition of Bright. The fair value of Ideal's shares is P150. In addition, the followingadjustments should be made to the current assets of Superior and Bright which has a fair value of P2,700.000 andP1,380,000, respectively. The noncurrent assets has a fair value of P12,900.000 and P11,850,000 for Superior andBright, respectively.Compute for the following balances in the books of Ideal Corporation at the date of acquisition:10. Stockholder's equityP25,05.0.000b. P55,380.000c. P53,070.000d. P57,690,000a.11. AssetsP61,740.000b. P55,440.000c. P55,830.000d. P56,400.000a.

Equity Formula states that the total value of the equity of the company is equal to the sum of the…

Corporation IS company involve manuracturing mining hing equipm board of directors of the said company has decided to enter into a busines and Bright Corporation, top suppliers of materials in the mining indust said acquisition is expected to result in producing higher quality mining ec was closed on February 28, 2018 and the following informati on was gathered SUPERIOR P2,340,000 15,300,000 P17,640,000 IDEAL Current assets Non-current assets Total Assets P8,250.000 18,750,000 P27,000.000.

Corporation IS company involve manuracturing mining hing equipm board of directors of the said company has decided to enter into a busines and Bright Corporation, top suppliers of materials in the mining indust said acquisition is expected to result in producing higher quality mining ec was closed on February 28, 2018 and the following informati on was gathered SUPERIOR P2,340,000 15,300,000 P17,640,000 IDEAL Current assets Non-current assets Total Assets P8,250.000 18,750,000 P27,000.000.

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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