The condensed Statement of Financial Position of GM and SR on January 1, 2021 are as follows GM Total Assets 10,250,000 Liabilities 2,775,000 Ordinary Shares 3,100,000 Share premium 1,250,000 Retained Earnings 3,125,000 SR Total Assets 3,057,500 Liabilities 800,000 Ordinary Shares 1,295,000 Share premium 100,000 Retained Earnings 862,500 SD Corp acquired the net assets of both GM and SR. Paying cash in the amount of 185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 and market value as of January 1, 2021 is P40 per share. SD Corp also incurred unpaid expenses: GM Indirect Cost 93,750 Finder's Fee 66,250 Accounting and Legal for Sec Reg 343,750 Printing cost of Stock certificates 125,000 SR Indirect Cost 101,250 Finder's Fee 35,000 Accounting and Legal for Sec Reg 362,500 Printing cost of Stock certificates 93,750 SD's retained earnings account has a balance of 10,750,000 on January 1, 2021 before the acquisition. As the result of the merger 33. What is the goodwill on the date of acquisition?

The condensed Statement of Financial Position of GM and SR on January 1, 2021 are as follows GM Total Assets 10,250,000 Liabilities 2,775,000 Ordinary Shares 3,100,000 Share premium 1,250,000 Retained Earnings 3,125,000 SR Total Assets 3,057,500 Liabilities 800,000 Ordinary Shares 1,295,000 Share premium 100,000 Retained Earnings 862,500 SD Corp acquired the net assets of both GM and SR. Paying cash in the amount of 185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 and market value as of January 1, 2021 is P40 per share. SD Corp also incurred unpaid expenses: GM Indirect Cost 93,750 Finder's Fee 66,250 Accounting and Legal for Sec Reg 343,750 Printing cost of Stock certificates 125,000 SR Indirect Cost 101,250 Finder's Fee 35,000 Accounting and Legal for Sec Reg 362,500 Printing cost of Stock certificates 93,750 SD's retained earnings account has a balance of 10,750,000 on January 1, 2021 before the acquisition. As the result of the merger 33. What is the goodwill on the date of acquisition?

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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