A. Goodwill recorded at P1,324,200B. Retained Earnings increased by P704,400C. Current Assets increased by P704,400D. Goodwill recorded at P704,400 The Alhambra Company had these accounts at the time it was acquired by Kingdom Co.:CashP 108,000Accounts Receivable1,371,000Inventories360,0001,948,2001,052,400PPEAccounts PayableKingdom Co. paid P4,200,000 for net assets of Alhambra Company. It has determined the fair market valuesof investment and PPE were P399,000 and P2,700,000, respectively.An assumed contingent liability arising from past events with a fair value amounting to P30,000 and suchamount is considered a reliable measurement.In the books of Kingdom Co., this transaction resulted in:

Business Combination: When two firms merge or one firm acquires the business of other firm, it is…

The Alhambra Company had these accounts at the time it was acquired by Kingdom Co.: Cash P 108,000 Accounts Receivable 1,371,000 Inventories 360,000 PPE 1,948,200 Accounts Payable 1,052,400 Kingdom Co. paid P4,200,000 for net assets of Alhambra Company. It has determined the fair market values of investment and PPE were P399,000 and P2,700,000, respectively. An assumed contingent liability arising from past events with a fair value amounting to P30,000 and such amount is considered a reliable measurement. In the books of Kingdom Co., this transaction resulted in:

The Alhambra Company had these accounts at the time it was acquired by Kingdom Co.: Cash P 108,000 Accounts Receivable 1,371,000 Inventories 360,000 PPE 1,948,200 Accounts Payable 1,052,400 Kingdom Co. paid P4,200,000 for net assets of Alhambra Company. It has determined the fair market values of investment and PPE were P399,000 and P2,700,000, respectively. An assumed contingent liability arising from past events with a fair value amounting to P30,000 and such amount is considered a reliable measurement. In the books of Kingdom Co., this transaction resulted in:

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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