On July 1, 2021, PASSETS acquired all the net assets of SIABS at its underlying book value, which resulted to neither a gain nor a goodwill. Considerations transferred included cash paid, bonds issued, and stocks issued. Apart from the transaction to acquire the net assets of and to transfer the consideration to the acquiree, PASSETS also has the following transactions:PASSETS paid P150,000 to SEC to register the newly issued sharesPASSETS incurred the obligation to pay P50,000 for printing of the stock certificates of the new shares issued.PASSETS paid Mr. Louis McRasigan P100,000 cash for his professional services in administering the business combinationA total of P1,000,000 for general and administrative expenses were incurred by the company, half of which was attributable to the business combination and treated as an unpaid indirect cost.a. 200,000 b. 1,300,000 c. 250,000 d. 800,000Among the four related transactions above, how much will decrease assets of the acquirer? On July 1, 2021, PASSETS acquired all the net assets of SIABS at its underlying bookvalue, which resulted to neither a gain nor a goodwill. Considerations transferredincluded cash paid, bonds issued, and stocks issued. Apart from the transaction toacquire the net assets of and to transfer the consideration to the acquiree, PASSETSalso has the following transactions:• PASSETS paid P150,000 to SEC to register the newly issued shares• PASSETS incurred the obligation to pay P50,000 for printing of the stock certificatesof the new shares issued.• PASSETS paid Mr. Louis McRasigan P100,000 cash for his professional servicesin administering the business combination• A total of P1,000,000 for general and administrative expenses were incurred by thecompany, half of which was attributable to the business combination and treated asan unpaid indirect cost.Among the four related transactions above, how much will decrease assets of theacquirer?O 200,000O 1,300,000250,000O 800,000

Acqusition cost in Business combination Acqusition cost which are incurred at the time of the…

Answered: On July 1, 2021, PASSETS acquired all…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

On July 1, 2021, PASSETS acquired all the net assets of SIABS at its underlying book value, which resulted to neither a gain nor a goodwill. Considerations transferred included cash paid, bonds issued, and stocks issued. Apart from the transaction to acquire the net assets of and to transfer the consideration to the acquiree, PASSETS also has the following transactions: PASSETS paid P150,000 to SEC to register the newly issued shares PASSETS incurred the obligation to pay P50,000 for printing of the stock certificates of the new shares issued. PASSETS paid Mr. Louis McRasigan P100,000 cash for his professional services in administering the business combination A total of P1,000,000 for general and administrative expenses were incurred by the company, half of which was attributable to the business combination and treated as an unpaid indirect cost. a. 200,000 b. 1,300,000 c. 250,000 d. 800,000 Among the four related transactions above, how much will decrease assets of the acquirer?

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions