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On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value common stock valued at P20 a share for all of SAYO CORP’s outstanding common shares in an acquisition. PAMIGAY CORP paid P15,000 for registering and issuing securities and P10,000 for other direct costs of the business combination. The fair value and book value of SAYO CORP’s identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2021 is as follows:
|
|
PAMIGAY CORP |
SAYO CORP |
|
Cash |
P 1,150,000 |
P 120,000 |
|
Inventories |
320,000 |
400,000 |
|
Other current assets |
500,000 |
500,000 |
|
Land |
350,000 |
250,000 |
|
PPE, net |
2,500,000 |
1,400,000 |
|
|
500,000 |
100,000 |
|
Total Assets |
P 5,320,000 |
P 2,770,000 |
|
|
|
|
|
Accounts payable |
P1,000,000 |
P 300,000 |
|
Notes payable |
1,300,000 |
660,000 |
|
Capital stock, P5 par |
2,000,000 |
500,000 |
|
Additional Paid-in capital |
1,000,000 |
100,000 |
|
|
20,000 |
1,210,000 |
|
Total Liabilities & Equities |
P 5,320,000 |
P 2,770,000 |
How much is the cash to be presented on the consolidated
QUESTION:
Based on the problem above, How much is the goodwill to be presented on the consolidated statement of financial position as of the date of acquisition?
Group of answer choices
110,000
10,000
510,000
610,000
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