On December 31, 2015, Hanzo Company is planning to purchase Buff Incorporated. Hanzo is not sure how much it needs to pay for the acquiring Buff Incorporated. The management of Hanzo wants to determine the value of the firm to decide the price it will pay to acquire the firm. Buff's statement of financial position showed net assets of P32,000,000. Buff's assets and liabilities had fair value different from the carrying amount as follows: Carrying amount 50,000,000 Fair value 57,500,000 Property, plant and equipment, net Other assets 5,000,000 3,000,000 Long-term debt 30,000,000 30,000,000 What is the minimum price will Hanzo pay to acquire Buff Incorporated?
On December 31, 2015, Hanzo Company is planning to purchase Buff Incorporated. Hanzo is not sure how much it needs to pay for the acquiring Buff Incorporated. The management of Hanzo wants to determine the value of the firm to decide the price it will pay to acquire the firm. Buff's statement of financial position showed net assets of P32,000,000. Buff's assets and liabilities had fair value different from the carrying amount as follows: Carrying amount 50,000,000 Fair value 57,500,000 Property, plant and equipment, net Other assets 5,000,000 3,000,000 Long-term debt 30,000,000 30,000,000 What is the minimum price will Hanzo pay to acquire Buff Incorporated?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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