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D0,000 as direct costs attributable to the combin= also obligated to pay an additional P20,000,000 t f Samsung Company at the end of the year if Sam ntained existing profitability and it is highly prol

D0,000 as direct costs attributable to the combin= also obligated to pay an additional P20,000,000 t f Samsung Company at the end of the year if Sam ntained existing profitability and it is highly prol

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please answer numbers 4,5 and 6. They were from the same problem. Thank you

4. On January 2, 2022, Panasonic Company purchased 90% of the outstanding shares of Samsung Company for P80,000,000. Panasonic also Paid P2,500,000 as direct costs attributable to the combination. Panasonic was also obligated to pay an additional P20,000,000 to the stockholders of Samsung Company at the end of the year if Samsung company maintained existing profitability and it is highly probable that Samsung company would achieve this expectation. The fair value of the contingent consideration is P20,000,000. the identifiable net assets acquired, the amount of goodwill to be recorded Assuming Panasonic opted to measure NCI proportionate to its share on The following financial information for Panasonic Company and Samsung Company follows: Panasonic Samsung Company Company Book Value Book Value Fair Value Cash and Cash 90,000,000 7,500,000 ogon 7,500.000 Equivalent Accounts 32,500,000b 17,500,000 16,500,000 Receivable Inventory Plant and 47,500,000 100,000,000 23,000,000 60,000,000 25,000,000 50,000,000 000,0 004,000,000 10,000,000 75,000,000 19,000,000 Equipment Other Assets 6,000,000 60,000,000 200,000,000 Liabilities 2,500,000 Share Capital mo Retained Earnings 16,000,000 by Panasonic arising from the business acquisition is: a. P11,611,110 b. P10,450,000 c. P11,111,111 d. P10,950,000
Transcribed Image Text:4. On January 2, 2022, Panasonic Company purchased 90% of the outstanding shares of Samsung Company for P80,000,000. Panasonic also Paid P2,500,000 as direct costs attributable to the combination. Panasonic was also obligated to pay an additional P20,000,000 to the stockholders of Samsung Company at the end of the year if Samsung company maintained existing profitability and it is highly probable that Samsung company would achieve this expectation. The fair value of the contingent consideration is P20,000,000. the identifiable net assets acquired, the amount of goodwill to be recorded Assuming Panasonic opted to measure NCI proportionate to its share on The following financial information for Panasonic Company and Samsung Company follows: Panasonic Samsung Company Company Book Value Book Value Fair Value Cash and Cash 90,000,000 7,500,000 ogon 7,500.000 Equivalent Accounts 32,500,000b 17,500,000 16,500,000 Receivable Inventory Plant and 47,500,000 100,000,000 23,000,000 60,000,000 25,000,000 50,000,000 000,0 004,000,000 10,000,000 75,000,000 19,000,000 Equipment Other Assets 6,000,000 60,000,000 200,000,000 Liabilities 2,500,000 Share Capital mo Retained Earnings 16,000,000 by Panasonic arising from the business acquisition is: a. P11,611,110 b. P10,450,000 c. P11,111,111 d. P10,950,000
5. Assuming Panasonic opted to measure NCI proportionate to its shares, the NCI to appear in the consolidated balance sheet on the date of acquisition is: a. P10,950,000 b. P4,950,000 c. P11,111,111 d. P9,950,000 6. Assuming the NCI is measured at Fair value, the amount of goodwill arising from acquisition is: a. P11,611,110 b. P10,450,000 c. P11,111,111 d. P10,950,000
Transcribed Image Text:5. Assuming Panasonic opted to measure NCI proportionate to its shares, the NCI to appear in the consolidated balance sheet on the date of acquisition is: a. P10,950,000 b. P4,950,000 c. P11,111,111 d. P9,950,000 6. Assuming the NCI is measured at Fair value, the amount of goodwill arising from acquisition is: a. P11,611,110 b. P10,450,000 c. P11,111,111 d. P10,950,000
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