On January 1, 2018, PNB and Allied Bank entered into a contract of merger wherein PNB will issue 100,000 ordinary shares with par value of P10 and quoted price of P20 to the existing shareholders of Allied in exchange for the net assets of Allied Bank. PNB paid acquisition related cost of business combination amounting to P100,000 and stock issuance cost amounting to P200,000. As of December 31, 2017, PNB has total assets with book value of P50M and fair market value of P60M while Allied Bank has total assets with book value of P5M and fair market value of P4M. The amount net assets of Allied Bank on December 31, 2017 is P2.6M. What is the amount of total assets of PNB on January 1, 2018 after the merger?
On January 1, 2018, PNB and Allied Bank entered into a contract of merger wherein PNB will issue 100,000 ordinary shares with par value of P10 and quoted price of P20 to the existing shareholders of Allied in exchange for the net assets of Allied Bank. PNB paid acquisition related cost of business combination amounting to P100,000 and stock issuance cost amounting to P200,000. As of December 31, 2017, PNB has total assets with book value of P50M and fair market value of P60M while Allied Bank has total assets with book value of P5M and fair market value of P4M. The amount net assets of Allied Bank on December 31, 2017 is P2.6M. What is the amount of total assets of PNB on January 1, 2018 after the merger?
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
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What is the amount of total assets of PNB on january 1, 2018 after the merger?
Transcribed Image Text:On January 1, 2018, PNB and Allied Bank entered into a contract of merger wherein PNB will issue 100,000
ordinary shares with par value of P10 and quoted price of P20 to the existing shareholders of Allied in exchange
for the net assets of Allied Bank. PNB paid acquisition related cost of business combination amounting to
P100,000 and stock issuance cost amounting to P200,000. As of December 31, 2017, PNB has total assets with
book value of P50M and fair market value of P60M while Allied Bank has total assets with book value of P5M
and fair market value of P4M. The amount net assets of AlIlied Bank on December 31, 2017 is P2.6M. What is
the amount of total assets of PNB on January 1, 2018 after the merger?
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