The following are the balances of Chair Company and Table Company as of January 1, 2002. Chair Company Book Value Fair Value Assets 4,000,000 4,200,000 Liabilities 1,000,000 900,000 Table Company Book Value Fair Value Assets 3,000,000 2,900,000 Liabilities 500,000 б0,000 The companies combined their resources and formed Lamp Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,00o. The company also incurs direct costs of 50,000 and indirect cost of 20,000. Determine the total assets of Lamp Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 year.
The following are the balances of Chair Company and Table Company as of January 1, 2002. Chair Company Book Value Fair Value Assets 4,000,000 4,200,000 Liabilities 1,000,000 900,000 Table Company Book Value Fair Value Assets 3,000,000 2,900,000 Liabilities 500,000 б0,000 The companies combined their resources and formed Lamp Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,00o. The company also incurs direct costs of 50,000 and indirect cost of 20,000. Determine the total assets of Lamp Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determine the total assets of Lamp Co. immediatelty after the business combination if contingetn expenses of P100,000 are estimated to be incurred after 1 year.
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