17Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell Corp. in business combination completed on March 1, 2020. The Acquiree’s net assets are worth P3,040,000 at fair market value. Out of pocket costs of the combination were as follows: Finder’s fee20,800Contingent consideration (probable and measurable) 14,400Legal fee21,600Printing of stock certificates6,800Professional fees paid to a CPA16,800Fees paid to company lawyers18,760Fees paid to company accountants31,120 The goodwill from the business combination is P334,400. How much is the fair market value of shares of Peterpan Company at March 1, 2020?Group of answer choices25354030

In business combinations, the goodwill occurs where the consideration transferred is more than the…

Answered: Peterpan Company issued 96,000 shares…

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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Peterpan Company issued 96,000 shares of its P25 par common stock for the net assets of Tinkerbell Corp. in business combination completed on March 1, 2020. The Acquiree’s net assets are worth P3,040,000 at fair market value. Out of pocket costs of the combination were as follows:

Finder’s fee	20,800
Contingent consideration (probable and measurable)	14,400
Legal fee	21,600
Printing of stock certificates	6,800
Professional fees paid to a CPA	16,800
Fees paid to company lawyers	18,760
Fees paid to company accountants	31,120