OHIO CORP. exchanged its common stock worth P280,000 for all of the net assets of OHELLO INC. in a business combination treated as a purchase. At the date of combination, OHIO's net assets had a book value of P480,000 and a fair value of P680,000. OHELLO's net assets had a book value of P260,000 and a fair value of P272,000. Immediately following the combination, the net assets of the combined company should have been reported at what amount?

OHIO CORP. exchanged its common stock worth P280,000 for all of the net assets of OHELLO INC. in a business combination treated as a purchase. At the date of combination, OHIO's net assets had a book value of P480,000 and a fair value of P680,000. OHELLO's net assets had a book value of P260,000 and a fair value of P272,000. Immediately following the combination, the net assets of the combined company should have been reported at what amount?

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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