On January 1, 2021, Parent Co. acquired the identifiable net asset of Subsidiary, Inc. On this date, the identifiable net assets acquired and liabilities assumed have fair values of P7,680,000 and P4,320,000, respectively. Parent Co. incurred the following acquisition-related costs: legal fees, P48,000, due diligence costs, P480,000; and general and administrative costs of maintaining an internal acquisition, P96,000. As consideration, Parent Co. transferred 9,600 of its own shares with par value and fair value per share of P400 and P500, respectively, to Subsidiary's former owners. Costs of registering the shares (previously issued and newly issued) amounted to P192,000 (P24,000 pertains to listing fees of previously issued shares). How much is the total amount charged to profit or loss in relation to this transaction?
On January 1, 2021, Parent Co. acquired the identifiable net asset of Subsidiary, Inc. On this date, the identifiable net assets acquired and liabilities assumed have fair values of P7,680,000 and P4,320,000, respectively. Parent Co. incurred the following acquisition-related costs: legal fees, P48,000, due diligence costs, P480,000; and general and administrative costs of maintaining an internal acquisition, P96,000. As consideration, Parent Co. transferred 9,600 of its own shares with par value and fair value per share of P400 and P500, respectively, to Subsidiary's former owners. Costs of registering the shares (previously issued and newly issued) amounted to P192,000 (P24,000 pertains to listing fees of previously issued shares). How much is the total amount charged to profit or loss in relation to this transaction?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On January 1, 2021, Parent Co. acquired the identifiable net asset of Subsidiary, Inc. On this date, the
identifiable net assets acquired and liabilities assumed have fair values of P7,680,000 and P4,320,000,
respectively. Parent Co. incurred the following acquisition-related costs: legal fees, P48,000, due diligence
costs, P480,000; and general and administrative costs of maintaining an internal acquisition, P96,000. As
consideration, Parent Co. transferred 9,600 of its own shares with par value and fair value per share of P400
and P500, respectively, to Subsidiary's former owners. Costs of registering the shares (previously issued and
newly issued) amounted to P192,000 (P24,000 pertains to listing fees of previously issued shares).
How much is the total amount charged to profit or loss in relation to this transaction?
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