Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016. The quoted market price of SBMA and PCIB shares are P36 and P40, respectively. SBMA and PCIB are both SMES. SBMA, Inc. Book value Fair value Book value Fair value PCIB Company P 8,000,000P 9,000,000P24,000,000P24,000,000 22,000,000 26,000,000 26,000,000 25,000,000 P30,000,000P35,000,000P50,000,000P49,000,000 5,000,000 5,000,00015,000,00015,500,000 20,000,000 3,000,000 12,000,000 P50,000,000 Current assets Plant assets Totals Liabilities Common stocks, P10 par10,000,000 APIC Retained earnings_14,000,000 Totals 1,000,000 P30,000,000 PCIB Company acquires all the net assets of SMBA by issuing 1,000,000 of its own shares. PCIB Company incurred the following out of pocket costs relating to the acquisition. Legal fees to arrange business combination Cost of SEC registration Cost of printing and issuing new stock certificates Indirect cost of combination P25,000 12,000 3,000 20,000 35,000 Finder's fees 42. Calculate the goodwill from the business combination. A. P10,000,000 B. P10,025,000 C. P10,040,000 D. P10,060,000
Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016. The quoted market price of SBMA and PCIB shares are P36 and P40, respectively. SBMA and PCIB are both SMES. SBMA, Inc. Book value Fair value Book value Fair value PCIB Company P 8,000,000P 9,000,000P24,000,000P24,000,000 22,000,000 26,000,000 26,000,000 25,000,000 P30,000,000P35,000,000P50,000,000P49,000,000 5,000,000 5,000,00015,000,00015,500,000 20,000,000 3,000,000 12,000,000 P50,000,000 Current assets Plant assets Totals Liabilities Common stocks, P10 par10,000,000 APIC Retained earnings_14,000,000 Totals 1,000,000 P30,000,000 PCIB Company acquires all the net assets of SMBA by issuing 1,000,000 of its own shares. PCIB Company incurred the following out of pocket costs relating to the acquisition. Legal fees to arrange business combination Cost of SEC registration Cost of printing and issuing new stock certificates Indirect cost of combination P25,000 12,000 3,000 20,000 35,000 Finder's fees 42. Calculate the goodwill from the business combination. A. P10,000,000 B. P10,025,000 C. P10,040,000 D. P10,060,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016.
The quoted market price of SBMA and PCIB shares are P36 and P40, respectively.
SBMA and PCIB are both SMES.
SBMA, Inc.
Book value Fair value Book value Fair value
PCIB Company
P 8,000,000P 9,000,000P24,000,000P24,000,000
22,000,000 26,000,000 26,000,000 25,000,000
P30,000,000P35,000,000P50,000,000P49,000,000
5,000,000 5,000,00015,000,00015,500,000
20,000,000
3,000,000
12,000,000
P50,000,000
Current assets
Plant assets
Totals
Liabilities
Common stocks, P10 par10,000,000
ΑΡIC
Retained earnings_14,000,000
Totals
1,000,000
P30,000,000
PCIB Company acquires all the net assets of SMBA by issuing 1,000,000 of its own
shares. PCIB Company incurred the following out of pocket costs relating to the
acquisition.
Legal fees to arrange business combination
Cost of SEC registration
Cost of printing and issuing new stock certificates
Indirect cost of combination
P25,000
12,000
3,000
20,000
35,000
Finder's fees
42. Calculate the goodwill from the business combination.
A. P10,000,000
B. P10,025,000
C. P10,040,000
D. P10,060,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F66c8e0a4-444b-463c-bbf9-ab530ff0ad96%2Fd38b82c5-9675-44c8-93e3-cde668890f4d%2Fw12h9nk_processed.png&w=3840&q=75)
Transcribed Image Text:Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016.
The quoted market price of SBMA and PCIB shares are P36 and P40, respectively.
SBMA and PCIB are both SMES.
SBMA, Inc.
Book value Fair value Book value Fair value
PCIB Company
P 8,000,000P 9,000,000P24,000,000P24,000,000
22,000,000 26,000,000 26,000,000 25,000,000
P30,000,000P35,000,000P50,000,000P49,000,000
5,000,000 5,000,00015,000,00015,500,000
20,000,000
3,000,000
12,000,000
P50,000,000
Current assets
Plant assets
Totals
Liabilities
Common stocks, P10 par10,000,000
ΑΡIC
Retained earnings_14,000,000
Totals
1,000,000
P30,000,000
PCIB Company acquires all the net assets of SMBA by issuing 1,000,000 of its own
shares. PCIB Company incurred the following out of pocket costs relating to the
acquisition.
Legal fees to arrange business combination
Cost of SEC registration
Cost of printing and issuing new stock certificates
Indirect cost of combination
P25,000
12,000
3,000
20,000
35,000
Finder's fees
42. Calculate the goodwill from the business combination.
A. P10,000,000
B. P10,025,000
C. P10,040,000
D. P10,060,000
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