P Company acquired 100% of S Company through an issue of 5,000,000 shares, par P10, to thestockholders of S Company. The following information relates to P Company and S Company atthe date of exchange:P Company10,000,000S Company2,000,000Outstanding sharesNew shares issued5,000,000Market price per share(listed and actively traded inthe stocks exchange)P25 per shareFair value of net assets(per independent appraisal)P100,000,000The consideration transferred amounts to:

In case one company overtake the assets and liabilities of another company , then accounting for…

P Company acquired 100% of S Company through an issue of 5,000,000 shares, par P10, to the stockholders of S Company. The following information relates to P Company and S Company at the date of exchange: P Company S Company 2,000,000 Outstanding shares New shares issued Market price per share (listed and actively traded in the stocks exchange) 10,000,000 5,000,000 P25 per share Fair value of net assets (per independent appraisal) P100,000,000 The consideration transferred amounts to: *

P Company acquired 100% of S Company through an issue of 5,000,000 shares, par P10, to the stockholders of S Company. The following information relates to P Company and S Company at the date of exchange: P Company S Company 2,000,000 Outstanding shares New shares issued Market price per share (listed and actively traded in the stocks exchange) 10,000,000 5,000,000 P25 per share Fair value of net assets (per independent appraisal) P100,000,000 The consideration transferred amounts to: *

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

See similar textbooks

Similar questions

SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD’s retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition. what is the Retained Earnings after the merger?
SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD’s retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.1. As a result of the merger, what is the goodwill?
On January 1, 20x1 Pinup Corp acquired 34,560 outstanding ordinary shares of Slug corp. for a cash consideration pf P5,158,400. The shareholder’s equity of Slug Corp. on the date of business combination is presented below: Ordinary shares P100 par value 5,760,000 Share premium 1,600,000 Retained Earnings 960,000 Pinup Corp agreed to issue additional 1,000 shares to former owners of Slug Corp if the market price per share of Pinup Corp shares increase to P120 pe share. On the acquisition date, the contingent consideration was estimated at P80,000. What is the amount of non-controlling interest if it is measured at its proportionate share in the identifiable net assets of Slug Corp? 3,328,000 3,492,267 4,992,000 3,200,000
What is the consolidated stockholders’ equity on December 31, 20x1:A. 2,040,000 C. 2,399,375B. 2,349,375 D. 2,375,975
Armadillo Enterprises acquired the following equity investmentsat the beginning of year 1 as trading investments. Description Number of shares Market price per share Total price Finestra Company 15,000 x $25 $387,500 BVD Company 20,000 X$18 $360,000 Market values at theend of Years 1 &2 are presented below: Market/Fair Value End of year 1 End of year 2 Finestra Company $19 $23 BVD Company |$22 $28 REQUIREMENTS: Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises sells 15,000 shares of BVD Company for $16at the beginning of year 2. Prepare the journal entry to record thesale. Prepare the adjusting journal entry required at the end of year2. Assume that ArmadilloEnterprises now holds these investments asavailable-for-sale. Prepare the journal entry to record the acquisition of theinvestments. Prepare the adjusting journal entry required at the end of year1. Armadillo Enterprises…
Fiona Company issued 21,500 ordinary shares with par value of P85 in exchange for land with a fair market value of 920,000 and a building with fair market value of P1,087,500. What is the amount to be debited for Share Premium-Ordinary?
15.The VV Company will issue shares of P10 par value common stock for all the assets and liabilities of the NN Company. VV Company's common stock has a current market value of P40 per share. The NN Company's Statement of financial position prior to acquisition is shown below: 320,000 Current Assets Liabilities 400,000 PPE (net) 880,000 Common Stock, P4 par 80,000 Total Assets 1,200,000 APIC 320,000 Retained Earnings Total Equity 400,000 1,200,000 The fair market value of the current assets is 400,000 while that of the PPE is 1,600,000. All the liabilities are correctly stated VV Company issued sufficient shares of stock so that the fair market value of the stock isued is equal the fair market value NN Company's net assets. To have an income from acquisition of 100,000, the number of shares to be issued by VV Company should be: C. 42,500 A. 37,500 B. 37,000 D. 42,000
ABC SAOG acquired heavy equipment worth OMR 110,000 from CPD LLC and issued 100,000 equity shares of OMR1 as fully paid up. Which one of the following journal entry will be correct? a. Debit heavy equipment OMR 100,000, Debit Share Premium OMR 10,000 Credit Share Capital OMR 110,000 b. Debit Share capital 110,000, Credit heavy equipment OMR 100,000 Credit Share Premium OMR 10,000 c. Debit heavy equipment OMR 110,000 Credit Share capital OMR 100,000 Credit Share premium OMR 10,000 d. Debit heavy equipment OMR 110,000 Credit Share Capital O
On January 3, 2022, P Company acquired 70% interest in S Company for P4,200,000. Consideration includes issuance of shares with fair value of P3,500,000 and cash for the balance. On this date, the equity of P and S Company are as follows: P Company S Company Ordinary Share Capital 3,300,000 1,450,000 Accumulated Profits 5,450,000 2,800,000 Non-controlling interest is initially measured at fair value of P1,675,000. Fair value of the following assets of S Company exceeded their book values: Inventories, P150,000; Fixed assets (remaining life – 5 years), P600,000. All other assets and liabilities are fairly valued. Towards the end of the year, P sold to S merchandise costing P150,000 at 40% gross profit, 25% of these inventories was unsold as of balance sheet date. Also, P purchased inventory from S amounting to P250,000 which includes mark-up of 20% based on cost. P sold to outsider 30% of these inventories during 2022. Goodwill is impaired by P225,000. P…
Parent Company acquired 18,000 shares of Company's ordinary share on January 1, 2021, for payment of P3,000,000 when Company's stockholders' equity section appeared as follows: Ordinary Share, P100 par, 25,000 shares issued P2,500,000 Share Premium 700,000 Retained Earnings 800,000 Treasury Shares 1,000 shares Assets and liabilities of Company has book values approximately equal to their fair values except for its inventory with a book value of P100,000 and a fair value of P130,000 and land with a book value of P400,000 and a fair value of P420,000 . Assuming the use of full- goodwill approach, compute for the goodwill.
January 1, 20x1, Peter Corp. acquired the identifiable net assets of Ella Corp. by paying cash of P1,500,000; issuing 50,000 ordinary shares with a market value of P60 per share. Peter paid the broker's fee of P25,000; cost if SEC registration of shares issued amounting to P2,000 and indirect cost of P5,000. The book values of assets of Peter and Ella are P15,200,000 and P2,500,000, respectively, and the book values of liability of Peter and Ella are P4,000,000 and P800,000. The book value reflects fair value of assets and liabilities except that the current asset of Peter is overvalued by P200,000 and non-current asset of Ella Corp is undervalued by P500,000. Peter Corp. has estimated P400,000 representing cost of exiting the activity of Ella Corp such as: cost of terminating employees and the cost of relocating terminated employees of Ella. The agreement also provides that Peter Corp shall pay cash on January 10, 20x1, equal 120% of the amount by which December 31, 20x1, earnings of…
On January 1, 20x1, Patrick Corp. acquired the identifiable net assets of Jinky Corp. by paying cash of P1,500,000; issuing 50,000 ordinary shares with a market value of P60 per share. Patrick paid the broker’s fee of P25,000; cost if SEC registration of shares issued amounting to P2,000 and indirect cost of P5,000. The book values of assets of Patrick and Jinky are P15,200,000 and P2,500,000, respectively, and the book values of liability of Patrick and Jinky are P4,000,000 and P800,000. The book value reflects fair value of assets and liabilities except that the current asset of Patrick is overvalued by P200,000 and non-current asset of Jinky Corp is undervalued by P500,000. Patrick Corp. has estimated P400,000 representing cost of exiting the activity of Jinky Corp such as: cost of terminating employees and the cost of relocating terminated employees of Jinky. The agreement also provides that Patrick Corp shall pay cash on January 10, 20x1, equal 120% of the amount by which…