On January 1, 20x1, DIAPHANOUS Co. acquired all of the identifiable assets and assumed all of the liabilities of TRANSPARENT, Inc. by paying cash of ₱4,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of ₱6,400,000 and ₱3,600,000, respectively. Additional information:In addition to the business combination transaction, the following have also transcribed during the negotiation period:a. After the business combination, TRANSPARENT will enter into liquidation and DIAPHANOUS agreed to reimburse
On January 1, 20x1, DIAPHANOUS Co. acquired all of the identifiable assets and assumed all of the liabilities of TRANSPARENT, Inc. by paying cash of ₱4,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of ₱6,400,000 and ₱3,600,000, respectively. Additional information:In addition to the business combination transaction, the following have also transcribed during the negotiation period:a. After the business combination, TRANSPARENT will enter into liquidation and DIAPHANOUS agreed to reimburse TRANSPARENT for liquidation costs estimated at ₱80,000.b. DIAPHANOUS agreed to reimburse TRANSPARENT for the appraisal fee of a building included in the identifiable assets acquired. The agreed reimbursement is ₱40,000.c. DIAPHANOUS entered into an agreement to retain the top management of TRANSPARENT for continuing employment. On acquisition date, DIAPHANOUS agreed to pay the key employees signing bonuses totaling ₱400,000.d. To persuade, Mr. Five-six Numerix, the previous major shareholder ofTRANSPARENT, to sell his major holdings to DIAPHANOUS, DIAPHANOUS agreed to pay an additional ₱200,000 directly to Mr. Numerix.e. Included in the valuation of identifiable assets are inventories withfair value of ₱360,000. Ms. Vital Statistix, a former major shareholderof TRANSPARENT, shall acquire title to the goods.How much is the
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