On January 1, 2021, XYZ Corp. acquires 100% interest in ABC Corp. in exchange for XYZS 10,000 shares with par value per share of P20 and fair value per shareof P200. ABC's net identifiable assets have a fair value of P1,900,000. In addition, XYZ Corp. agrees to issue additional 2.000 shares if ABC's 2021 profit willexceed P3,600,000. The fair value of the contingent consideration is P280,0001. ABC's 2021 profit is P3,800,000. XYZ Corp. issues the additional shares on January 14, 2022. Provide the journal entries on January 14, 2022.2. ABC's 2021 profit is P2.800,000. Provide the journal entries.

Contingent Consideration - The consideration paid by the Acquirer to the Acquiree in exchange for…

Answered: On January 1, 2021, XYZ Corp. acquires…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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