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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Correct Answer : 1,300,000 (with margin: 0)
Please show solutions, how to get the answer :)
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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