Papa Co. issued shares in exchange for all the outstanding shares of Baby Co. The business combination did not result to any goodwill. The share exchange ratio was 2:1. Baby Co. share capital has a carrying amount of P40,000. The par value per share is P4. Baby Co.’s net identifiable assets have a carrying amount of P400,000 and fair value of P800,000. Papa Co.’s shares have a par value of P10. How much is the acquisition date fair value per share of Papa Co.’s shares?*a. P 80b. P 40c. P 20d. P 100

Business combination is the process in which acquirer company obtains the control over the acquiree…

Answered: Papa Co. issued shares in exchange for…

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

Papa Co. issued shares in exchange for all the outstanding shares of Baby Co. The business combination did not result to any goodwill. The share exchange ratio was 2:1. Baby Co. share capital has a carrying amount of P40,000. The par value per share is P4. Baby Co.’s net identifiable assets have a carrying amount of P400,000 and fair value of P800,000. Papa Co.’s shares have a par value of P10. How much is the acquisition date fair value per share of Papa Co.’s shares?*

a. P 80

b. P 40

c. P 20

d. P 100

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