REQUIREMENTS: A. Consolidated Total Assets at the date of acquisition B. Consolidated Equity at the date of acquisition
If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value
shares with a fair value of P35 per share, a P40,000 direct cost and a P50,000 stock issue cost however
remain unpaid. The companies also agreed on the following:
CARDO guarantees the prices of there stocks and promises to pay the peso decline in their
shares within one year.
CARDO Co promises to pay the stockholders of SYANO Co an additional P100,00 if the net
income of the company in the next year will be more than P500,000. CARDO estimates that
there is an 80% probability of achieving the target income.
REQUIREMENTS:
A. Consolidated Total Assets at the date of acquisition
B. Consolidated Equity at the date of acquisition
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