The following are the balances of LITTLE Company and BOY Company as of January 1, 20x1. Dianne Company BV FV Assets 4,000,000 4,200,000 Liabilities 1,000,000 900,000 Corpuz Company Book Value Fair Value Assets 3,000,000 2,900,000 Liabilities 500,000 600,000 The companies combined their resources and formed CHAN Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,000. The company also incurs direct costs of 50,000 and indirect cost of 20,000. What is the total assets of Dark Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 yr?
The following are the balances of LITTLE Company and BOY Company as of January 1, 20x1. Dianne Company BV FV Assets 4,000,000 4,200,000 Liabilities 1,000,000 900,000 Corpuz Company Book Value Fair Value Assets 3,000,000 2,900,000 Liabilities 500,000 600,000 The companies combined their resources and formed CHAN Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,000. The company also incurs direct costs of 50,000 and indirect cost of 20,000. What is the total assets of Dark Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 yr?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following are the balances of LITTLE Company and BOY Company as of January 1, 20x1.
|
Dianne Company |
BV |
FV |
|
Assets |
4,000,000 |
4,200,000 |
|
Liabilities |
1,000,000 |
900,000 |
|
Corpuz Company |
Book Value |
Fair Value |
|
Assets |
3,000,000 |
2,900,000 |
|
Liabilities |
500,000 |
600,000 |
The companies combined their resources and formed CHAN Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,000. The company also incurs direct costs of 50,000 and indirect cost of 20,000.
What is the total assets of Dark Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 yr?
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