Tyra Company acquired all of Jay Corporation's assets and liabilities on June 30, 2021. Jay reported assets with a book value of P1,000,000 and liabilities of P550,000. Tyra noted that Jay included the amount P70,000 for an obsolete inventory at the acquisition date that did not appear to have any value. Tyra also determined that an old machine previously used by Jay had a fair value of P150,000 but had not been recorded by Jay. Except for machinery and equipment, all the other assets and liabilities of Jay approximated their fair values. In recording the transfer of assets and liabilities in its books, Tyra recorded a gain of P150,000 and paid P340,000 to acquire Jay's net assets. If the book value of Jay's machinery and equipment was P360,000, what was their fair value?
Tyra Company acquired all of Jay Corporation's assets and liabilities on June 30, 2021. Jay reported assets with a book value of P1,000,000 and liabilities of P550,000. Tyra noted that Jay included the amount P70,000 for an obsolete inventory at the acquisition date that did not appear to have any value. Tyra also determined that an old machine previously used by Jay had a fair value of P150,000 but had not been recorded by Jay. Except for machinery and equipment, all the other assets and liabilities of Jay approximated their fair values.
In recording the transfer of assets and liabilities in its books, Tyra recorded a gain of P150,000 and paid P340,000 to acquire Jay's net assets. If the book value of Jay's machinery and equipment was P360,000, what was their fair value?
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