BUSINESS COMBINATIONPROBLEM No. 3The following Statement of Financial Position were prepared for PAN and OZ Corporation on January 1, 2021, justbefore they entered into a business combination:PANOZBVFVBVFVP50,000100,000300,000(150.000)P300,000Cash and ReceivablesInventoryBuildings and EquipmentLess: Accumulated DepreciationP300,000400,000800,000(200,000)P1,300,000 P1,770,000P300,000600,000870,000P50,000245,000250,000Total AssetsP545,000Accounts PayableBond PayableP100,000400,000P100,000440,000P40,000P40,00085,00060,000Common StockP10 par valueP5 par valueAdditional Paid-in CapitalRetained EarningsTotal Liabilities & Equities300,000100,000400,000P1,300,000100,00020,00080.000P300,000REQUIREMENT: Assume that PAN acquires the net assets of OZ by issuing 15,000 shares of stock. Prepare aStatement of Financial Position for the combined company immediately after the acquisition if the market price ofPAN shares is (1) 40 and (2) P20 at the time of acquisition occurs.

Balance Sheet- The balance sheet is a financial statement that shows an organization's assets,…

The following Statement of Financial Position were prepared for PAN and OZ Corporation on January 1, 2021, just before they entered into a business combination: PAN OZ BV FV BV FV P300,000 600,000 870,000 P50,000 245,000 250,000 Cash and Receivables Inventory Buildings and Equipment Less: Accumulated Depreciation P300,000 400,000 800,000 (200,000) P1,300,000 P1,770,000 P50,000 100,000 300,000 (150,000) P300,000 Total Assets P545,000 P40,000 60,000 Accounts Payable Bond Payable Common Stock P10 par value P5 par value Additional Paid-in Capital Retained Earnings Total Liabilities & Equities P100,000 400,000 P100,000 440,000 P40,000 85,000 300,000 100,000 400.000 P1,300,000 100,000 20,000 80.000 P300.000 REQUIREMENT: Assume that PAN acquires the net assets of OZ by issuing 15,000 shares of stock. Prepare a Statement of Financial Position for the combined company immediately after the acquisition if the market price of PAN shares is (1) 40 and (2) P20 at the time of acquisition occurs.

The following Statement of Financial Position were prepared for PAN and OZ Corporation on January 1, 2021, just before they entered into a business combination: PAN OZ BV FV BV FV P300,000 600,000 870,000 P50,000 245,000 250,000 Cash and Receivables Inventory Buildings and Equipment Less: Accumulated Depreciation P300,000 400,000 800,000 (200,000) P1,300,000 P1,770,000 P50,000 100,000 300,000 (150,000) P300,000 Total Assets P545,000 P40,000 60,000 Accounts Payable Bond Payable Common Stock P10 par value P5 par value Additional Paid-in Capital Retained Earnings Total Liabilities & Equities P100,000 400,000 P100,000 440,000 P40,000 85,000 300,000 100,000 400.000 P1,300,000 100,000 20,000 80.000 P300.000 REQUIREMENT: Assume that PAN acquires the net assets of OZ by issuing 15,000 shares of stock. Prepare a Statement of Financial Position for the combined company immediately after the acquisition if the market price of PAN shares is (1) 40 and (2) P20 at the time of acquisition occurs.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 37RQSC

See similar textbooks

Similar questions

pls answer and provide solution and explanation
Questions: a. How much is the Goodwill/Gain on Bargain Purchase? b. How much is the Consolidated Assets? c.
P3.4 Consolidated Balance Sheet Working Paper, Bargain Purchase On January 1, 2019, Paxon Corporation acquired all of the outstanding common stock of Saxon Company for $1.7 billion cash. The balance sheets of Paxon and Saxon, immediately prior to the combination, are shown below: Balance Sheets (in millions) Assets Cash and receivables. Inventory. Equity method investments Land.. Buildings and equipment, net Total assets Liabilities and Shareholders' Equity Current liabilities.. Long-term debt Common stock, par value Additional paid-in capital. Retained earnings Total liabilities and shareholders' equity Paxon (in millions) Inventory.. Equity method investments Land.... Buildings and equipment, net $2,860 1,700 - 650 2,400 $7,610 $1,500 2,000 500 1,200 2,410 $7,610 Saxon $ 720 900 300 175 600 $2,695 $1,000 400 100 350 845 $2,695 Several of Saxon's assets had fair values that were different from their book values. Estimates of the fair values of these items follow: Estimated Fair Value…
What amount should be reported as depreciation expense in Pirn’s consolidated income statements? A. 50,000 B. 47,000 C. 44,000 D. 41,000
What amount should be reported as depreciation expense in Pirn’s consolidated income statements? a. 50,000 b. 47,000 c. 44,000 d. 41,000
J
Accounting On January 1, 20X1, Porta Corporation purchased Swick Company's net assets and assigned goodwill of $81,500 to Reporting Division K. The following assets and liabilities are assigned to Reporting Division K on the acquisition date: Carrying Fair Amount Value Cash 15,500 $ 15,500 Inventory 57,500 72,500 Equipment 185,000 205,000 Goodwill 81,500 Accounts 31,500 31,500 Payable Required: On December 31, 20X3, Porta must test goodwill for impairment. Determine the amount of goodwill to be reported for Division K and the amount of goodwill impairment to be recognized, if any, if Division K's fair value is determined to be $355,000. $295,000. $275,000.
Show the solution in good accounting form
Show the solution in good accounting form Coronation company purchased an entity for 6,000,000 cash on January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition of follow: Question: What is the good arising from the acquisition? A. 4,450,000 B. 700,000 C. 2,450,000 D. 2,700,000
please answer in detail with explanation computation formula with steps thanks
What is the consolidated asset after acquisition
1. At what amount will the gain on sale of building appear on the consolidated/group income statement of Power and Speed for the year 2019 should be: 2. The consolidated depreciation expense for 2019 should be