SB Corp. is offered 200,000 shares of EX Corp. ordinary shares in exchange for its net assets at August 30, 2020. The acquirer shares had a market value of P11 per share on that date. The balance sheet of the two companies at the date of acquisition follow:   SB CORP EX CORP Total assets                                                             1,097,500 1,733,250 Liabilities 1,097,500 383,250 Ordinary shares, par P1                                                   800,000 25,000 Retained earnings (deficit)                                              (15,000) 1,325,000 Total liabilities and stockholders’ equity                   1,097,500 1,733,250 The goodwill (income from acquisition) resulting from the business combination would be

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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SB Corp. is offered 200,000 shares of EX Corp. ordinary shares in exchange for its net assets at August 30, 2020. The acquirer shares had a market value of P11 per share on that date. The balance sheet of the two companies at the date of acquisition follow:

 

SB CORP

EX CORP

Total assets                                                            

1,097,500

1,733,250

Liabilities

1,097,500

383,250

Ordinary shares, par P1                                                  

800,000

25,000

Retained earnings (deficit)                                             

(15,000)

1,325,000

Total liabilities and stockholders’ equity                  

1,097,500

1,733,250

The goodwill (income from acquisition) resulting from the business combination would be

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