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: 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. Determine the fair value of consideration transferred on the business combi
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: 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. Determine the fair value of consideration transferred on the business combi
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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:
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. Determine the fair value of consideration transferred on the business combination.
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc2349bf-55e0-4fb2-bda0-b790fff3910c%2Fb084a8af-5b5d-40b6-bad5-0f233d33325d%2F5s3o2gu_processed.png&w=3840&q=75)
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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