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. 1. Determine the fair value of consideration transferred on the business combination? 2. how many shares were issued in the business combination? 3. how much is the acquisition-date fair value per share?
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. 1. Determine the fair value of consideration transferred on the business combination? 2. how many shares were issued in the business combination? 3. how much is the acquisition-date fair value per share?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
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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.
1. Determine the fair value of consideration transferred on the business combination?
2. how many shares were issued in the business combination?
3. how much is the acquisition-date fair value per share?
![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%2F1fe14364-61fc-4709-a803-60f020caba8c%2Fd3bd5165-82e2-4bb2-91dd-969b04c92867%2Fwx0jg8_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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