On December 1, 2021. LETSEE Corporation acquired for P1,750,000 all the net assets of SATER Company. On the date of the combination , the carrying value of SATER Company’s identifiable net assets was P1,437,500. The current fair value of all identifiable net assets of SATER Company were equal to their carrying values, except for its inventories and plants assets. The current fair value of SATER Company’s inventories was P250,000 less than their carrying values, and the current fair value of SATER Company’s plant asset was P500,000 more than their carrying amount. The journal entry prepared by LETSEE Corporation to record the business combination. a.Debit of P437,500 to Goodwill b.Debit of P62,500 to Goodwill c.Debit of P250,000 to Inventories d.Credit of P500,000 to Plant Assets
On December 1, 2021. LETSEE Corporation acquired for P1,750,000 all the net assets of SATER Company. On the date of the combination , the carrying value of SATER Company’s identifiable net assets was P1,437,500. The current fair value of all identifiable net assets of SATER Company were equal to their carrying values, except for its inventories and plants assets. The current fair value of SATER Company’s inventories was P250,000 less than their carrying values, and the current fair value of SATER Company’s plant asset was P500,000 more than their carrying amount. The
a.Debit of P437,500 to
b.Debit of P62,500 to Goodwill
c.Debit of P250,000 to Inventories
d.Credit of P500,000 to Plant Assets
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