On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. How much is the gain on acquisition or goodwill to be recognized?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. How much is the gain on acquisition or goodwill to be recognized?

 

АВС Со
(carrying amounts) (fair values)
XYZ Inc
Combined
Identifiable assets
9,600,000
6,400,000
16,000,000
Goodwill
?
Total assets
9,600,000
6,400,000
?
Liabilities
2,800,000
3,600,000
6,400,000
Share capital
Share premium
Retained earnings
Total liabilities & equity
2,400,000
1,200,000
2,800,000
1,200,000
1,000,000
4,800,000
3,200,000
600,000
9,600,000
6,400,000
Transcribed Image Text:АВС Со (carrying amounts) (fair values) XYZ Inc Combined Identifiable assets 9,600,000 6,400,000 16,000,000 Goodwill ? Total assets 9,600,000 6,400,000 ? Liabilities 2,800,000 3,600,000 6,400,000 Share capital Share premium Retained earnings Total liabilities & equity 2,400,000 1,200,000 2,800,000 1,200,000 1,000,000 4,800,000 3,200,000 600,000 9,600,000 6,400,000
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