On December 31, 2022, the following information were taken from the trial balances of ABC Company and XYZ Company: Account Title For ABC Company For XYZ Company Cash P1,200,000 P200,000 Trade and other receivables 300,000 300,000 Inventories 1,300,000 1,000,000 Noncurrent assets 1,600,000 1,300,000 Current liabilities 300,000 200,000 Noncurrent liabilities 600,000 400,000 Ordinary share capital 1,100,000 1,000,000 Share premium 200,000 - Retained Earnings 2,200,000 1,200,000 On January 1, 2023, ABC Company issues 50,000 shares of its P20 par value shares to acquire 70% of the outstanding shares of XYZ. The fair value of the shares of ABC as of January 1 was P29. Contingent consideration that is determined based on the best estimate is P100,000 . It was determined that ABC Company had a noncurrent asset that was undervalued by P25,000. The fair value of the no.n-controlling interest is P700,000 ABC Company also incurred the following fees Broker's fees (paid) 190,000 Pre-Acquisition audit Fee(unpaid) 210,000 Legal fees (unpaid) 205,000 SEC registration of stocks issued (paid) 170,000 Printing costs of stock certificate (paid) 165,000 How much is the goodwill (gain on bargain purchase? How much is the consolidated assets, liabilities and equity immediately after combination?
On December 31, 2022, the following information were taken from the trial balances of ABC Company and XYZ Company: Account Title For ABC Company For XYZ Company Cash P1,200,000 P200,000 Trade and other receivables 300,000 300,000 Inventories 1,300,000 1,000,000 Noncurrent assets 1,600,000 1,300,000 Current liabilities 300,000 200,000 Noncurrent liabilities 600,000 400,000 Ordinary share capital 1,100,000 1,000,000 Share premium 200,000 - Retained Earnings 2,200,000 1,200,000 On January 1, 2023, ABC Company issues 50,000 shares of its P20 par value shares to acquire 70% of the outstanding shares of XYZ. The fair value of the shares of ABC as of January 1 was P29. Contingent consideration that is determined based on the best estimate is P100,000 . It was determined that ABC Company had a noncurrent asset that was undervalued by P25,000. The fair value of the no.n-controlling interest is P700,000 ABC Company also incurred the following fees Broker's fees (paid) 190,000 Pre-Acquisition audit Fee(unpaid) 210,000 Legal fees (unpaid) 205,000 SEC registration of stocks issued (paid) 170,000 Printing costs of stock certificate (paid) 165,000 How much is the goodwill (gain on bargain purchase? How much is the consolidated assets, liabilities and equity immediately after combination?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
On December 31, 2022, the following information were taken from the trial balances of ABC Company and XYZ Company:
Account Title
For ABC Company
For XYZ Company
Cash
P1,200,000
P200,000
Trade and other receivables
300,000
300,000
Inventories
1,300,000
1,000,000
Noncurrent assets
1,600,000
1,300,000
Current liabilities
300,000
200,000
Noncurrent liabilities
600,000
400,000
Ordinary share capital
1,100,000
1,000,000
Share premium
200,000
-
Retained Earnings
2,200,000
1,200,000
On January 1, 2023, ABC Company issues 50,000 shares of its P20 par value shares to acquire 70% of the outstanding shares of XYZ. The fair value of the shares of ABC as of January 1 was P29. Contingent consideration that is determined based on the best estimate is P100,000 . It was determined that ABC Company had a noncurrent asset that was undervalued by P25,000. The fair value of the no.n-controlling interest is P700,000
ABC Company also incurred the following fees
Broker's fees (paid) 190,000
Pre-Acquisition audit Fee(unpaid)
210,000
Legal fees (unpaid)
205,000
SEC registration of stocks issued (paid) 170,000
Printing costs of stock certificate (paid) 165,000
How much is the goodwill (gain on bargain purchase?
How much is the consolidated assets, liabilities and equity immediately after combination?
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