Do fast answer of this general accounting question Summit Corp. has 20 million shares outstanding and trades at $40 pershare. Summit has net identifiable assets with a book value of $600million and a fair value of $800 million. Apex Corporation purchasesall of Summit Corp. stock for $45 per share. How much will Apexrecord as goodwill upon acquiring Summit?a. $100 millionb. $200 millionc. $300 milliond. $400 million

Step 1:First calculate the purchase consideration: Purchase consideration = Number of shares…

Answered: Summit Corp. has 20 million shares…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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From the data given, compute the goodwill or gain from bargain purchase for the different items. If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respective. What is the amount of GOODWILL?
Determine: 1. Amount of consideration 2. Amount of goodwill (gain) 3. Assuming that P Company is an SME, how much is the goodwill or gain?
To recognize goodwill of P300,000, how many shares were to be issued?
Target inc. has 30 milion shares solve this accounting questions
If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respective. Compute for the Consolidated Total Assets at the date of acquisition.
You're given the following details of an acquisition of Target Co. by Acquirer Ltd.. What is the transaction value for this acquisition of Target Co.? Acquisition of Target Co. by Acquirer Ltd. Target Share Price ($/sh.) $85.40 Acquisition Premium 15% Diluted Shares Outstanding (MM) 670 Target Total Debt Target Cash and Cash Equivalents % Debt Financing % Equity Financing Equity Financing Fees Debt Financing Fees Other Transaction Costs $3,562 $5,147 40% 60% 4.0% 1.5% $800
z4
If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par valueshares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash andpaying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respective. REQUIREMENTS:A. GoodwillB. Consolidated Total Assets at the date of acquisition
Principal, Inc. is acquiring Secondary Companies for $29 million in cash. Principal has 2.5 million shares of stock outstanding at a market price of $30 a share. Secondary has 1.6 million shares of stock outstanding at a market price of $15 a share. Neither firm has any debt. The synergy gains of the acquisition is $4.5 million. What is the NPV of the acquisition?
If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par valueshares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash andpaying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respective.REQUIREMENTS: Goodwill and Consolidated Total Assets at the date of acquisition
Lee Company is contemplating the purchase of the net assets of Min Company for P800,000 cash. To contemplate the transactin, direct acquisition costs are P15,000. The balance sheet of Min Company on the purchse date is as follows: Min Company Balance Sheet December 31, 2020 Assets Liabilities & Equity Current Assets 80,000 Liabilities 100,000 Land 50,000 Common Stock, P10 par 100,000 Building 450,000 Paid-in capital in excess of par 150,000 Accumulated Depreciation (200,000) Retained Earnings…
Bayside Fishing Supply Co.is acquiring Fishing Lure Specialists for $25,250 in cash. Bayside Fishing Supply Co. has 2,350 shares outstanding at a market price per share of $39. Fishing Lure Specialists has 1,500 shares outstanding at $16 per share. Neither firm has outstanding debt. The incremental value (synergy) of the acquisition is $2,300. What is the value of Bayside Fishing Supply Co. after the acquisition? A $89,150 B $56,650 C $88,950 D $92,700 E) $73,750

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