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: *

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

100%

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
10,000,000
S Company
2,000,000
Outstanding shares
New shares issued
5,000,000
Market price per share
(listed and actively traded in
the stocks exchange)
P25 per share
Fair value of net assets
(per independent appraisal)
P100,000,000
The consideration transferred amounts to:

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