PROBLEM 4The following are the balances of LITTLE Company and BOY Company as of January 1, 20x1.Dianne CompanyBVFV4,000,0001,000,000Assets4,200,000Liabilities900,000for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or byic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibiterCorpuz Company3,000,0002,900,000AssetsLiabilities500,000600,000The companies combined their resources and formed CHAN Co. The new company issues 6,000 shares of 500par value common stocks with fair value of P600 and pays additional 500,000. The company also incurs directcosts of 50,000 and indirect cost of 20,000.Determine the total assets of Dark Co. immediately after the business combination if contingent expenses ofP100,000 are estimated to be incurred after 1 yr.

Purchase Method Particulars Dianne Company Corpuz Company Total Purchased- Assets…

Answered: termine the total assets of Dark Co.…

termine the total assets of Dark Co. immediately after the business combination if contingent expenses 00,000 are estimated to be incurred after 1 yr.

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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