If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respective. Compute for the goodwill The following balances were taken from the trial balance of CARDO Company and SYANO Company at thestart of the fiscal year 20x7:CARDO COMPANYBook ValueFair ValueBook ValueFair ValueAccounts PayableP450,000200,000595,000260,000CashP500,000P500,000240,000 Mortgage Payable200,000 Ordinary Shares520,000 Retained EarningsP440,000220,000250,000155,000600,000Accounts ReceivableLOInventoryFixed Assets (Net)SYANO COMPANYBook ValueFair ValueBook ValueFair ValueAccounts PayableP340,000220,000CashP300,000150,000125,000400,000P300,000160,000 Mortgage Payable100,000 Ordinary Shares420,000 Retained EarningsP350,000200,000250,000175,000Accounts ReceivableInventoryFixed Assets (Net)RST

The following balances were taken from the trial balance of CARDO Company and SYANO Company at the start of the fiscal year 20x7: CARDO COMPANY Book Value P450,000 200,000 595,000 260,000 Book Value Fair Value Fair Value P500,000 250,000 155,000 600,000 P500,000 Accounts Payable 240,000 Mortgage Payable 200,000 Ordinary Shares 520,000 Retained Earnings P440,000 220,000 Cash Accounts Receivable Inventory Fixed Assets (Net) SYANO COMPANY Book Value Fair Value Book Value Fair Value P300,000 Accounts Payable 160,000 Mortgage Payable 100,000 Ordinary Shares 420,000 Retained Earnings Cash P300,000 150,000 125,000 400,000 P350,000 200,000 250,000 175,000 P340,000 Accounts Receivable 220,000 Inventory Fixed Assets (Net) LO

The following balances were taken from the trial balance of CARDO Company and SYANO Company at the start of the fiscal year 20x7: CARDO COMPANY Book Value P450,000 200,000 595,000 260,000 Book Value Fair Value Fair Value P500,000 250,000 155,000 600,000 P500,000 Accounts Payable 240,000 Mortgage Payable 200,000 Ordinary Shares 520,000 Retained Earnings P440,000 220,000 Cash Accounts Receivable Inventory Fixed Assets (Net) SYANO COMPANY Book Value Fair Value Book Value Fair Value P300,000 Accounts Payable 160,000 Mortgage Payable 100,000 Ordinary Shares 420,000 Retained Earnings Cash P300,000 150,000 125,000 400,000 P350,000 200,000 250,000 175,000 P340,000 Accounts Receivable 220,000 Inventory Fixed Assets (Net) LO

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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