Homework Help is Here – Start Your Trial Now!
Business
Accounting
Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2, 2022. Partial balance sheet for the companies prior to the business combination and immediately following the combination is provided: Parent 65,000 72,000 33,000 400,000 Sub 25,000 20,000 45,000 140,000 10,000 240,000 Consolidated 60,000 Cash Accounts receivable Inventory Buildings Goodwill Total assets 94,000 88.000 650,000 570,000 Accounts payable Bonds payable Common stock, P2 par Share premium Retained earnings Total liabilities and equities 50,000 250,000 100,000 65,000 105,000 570,000 25,000 100,000 25,000 20,000 70,000 240,000 75,000 350,000 160,000 100,000 The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid business combination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.

Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2, 2022. Partial balance sheet for the companies prior to the business combination and immediately following the combination is provided: Parent 65,000 72,000 33,000 400,000 Sub 25,000 20,000 45,000 140,000 10,000 240,000 Consolidated 60,000 Cash Accounts receivable Inventory Buildings Goodwill Total assets 94,000 88.000 650,000 570,000 Accounts payable Bonds payable Common stock, P2 par Share premium Retained earnings Total liabilities and equities 50,000 250,000 100,000 65,000 105,000 570,000 25,000 100,000 25,000 20,000 70,000 240,000 75,000 350,000 160,000 100,000 The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid business combination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

42

how much is the fair value of the net assets of Sub?
Transcribed Image Text:how much is the fair value of the net assets of Sub?
Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2. 2022. Partial balance sheet for the companies prior to the business combination and immediately following the combination is provided: Parent 65,000 Consolidated 60,000 Sub 25,000 20,000 45,000 140,000 10,000 240,000 Cash Accounts receivable 72,000 94,000 Inventory Buildings Goodwill 33,000 400,000 88,000 650,000 Total assets 570,000 75.000 350,000 Accounts payable Bonds payable Common stock, P2 par Share premium Retained earnings Total liabilities and equities 50,000 25,000 100,000 25,000 20,000 70,000 240,000 250,000 100,000 160,000 65,000 105,000 570,000 100,000 The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid business combination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.
Transcribed Image Text:Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2. 2022. Partial balance sheet for the companies prior to the business combination and immediately following the combination is provided: Parent 65,000 Consolidated 60,000 Sub 25,000 20,000 45,000 140,000 10,000 240,000 Cash Accounts receivable 72,000 94,000 Inventory Buildings Goodwill 33,000 400,000 88,000 650,000 Total assets 570,000 75.000 350,000 Accounts payable Bonds payable Common stock, P2 par Share premium Retained earnings Total liabilities and equities 50,000 25,000 100,000 25,000 20,000 70,000 240,000 250,000 100,000 160,000 65,000 105,000 570,000 100,000 The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid business combination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS