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Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by P200,000. On January 2, 20x4, Robin Corporation, pays 100,000 issues 100,000 shares of its P10 par value common stock for all of Hope's net assets and Hope is dissolved. Also, Robin promised to pay 200,000 in addition to the stated consideration after 3 months. The amount is said to be determinable. Market quotation for the stock on this date are: Hope common: P19 Robin pays the following fees and costs in connection with the combination: Finder's fee, P10,000 Costs of registering and issuing stock, P5,000 Legal and accounting fees, P6,000 Required: Calculate the amount of consideration transferred

Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by P200,000. On January 2, 20x4, Robin Corporation, pays 100,000 issues 100,000 shares of its P10 par value common stock for all of Hope's net assets and Hope is dissolved. Also, Robin promised to pay 200,000 in addition to the stated consideration after 3 months. The amount is said to be determinable. Market quotation for the stock on this date are: Hope common: P19 Robin pays the following fees and costs in connection with the combination: Finder's fee, P10,000 Costs of registering and issuing stock, P5,000 Legal and accounting fees, P6,000 Required: Calculate the amount of consideration transferred

FINANCIAL ACCOUNTING
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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Correct Answer : 1,300,000 (with margin: 0)

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Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by P200,000. On January 2, 20x4, Robin Corporation, pays 100,000 issues 100,000 shares of its P10 par value common stock for all of Hope's net assets and Hope is dissolved. Also, Robin promised to pay 200,000 in addition to the stated consideration after 3 months. The amount is said to be determinable. Market quotation for the stock on this date are: Hope common: P19 Robin pays the following fees and costs in connection with the combination: Finder's fee, P10,000 Costs of registering and issuing stock, P5,000 Legal and accounting fees, P6,000 Required: Calculate the amount of consideration transferred
Transcribed Image Text:Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by P200,000. On January 2, 20x4, Robin Corporation, pays 100,000 issues 100,000 shares of its P10 par value common stock for all of Hope's net assets and Hope is dissolved. Also, Robin promised to pay 200,000 in addition to the stated consideration after 3 months. The amount is said to be determinable. Market quotation for the stock on this date are: Hope common: P19 Robin pays the following fees and costs in connection with the combination: Finder's fee, P10,000 Costs of registering and issuing stock, P5,000 Legal and accounting fees, P6,000 Required: Calculate the amount of consideration transferred
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