Wendelle paid finder's fees of P40,000, accountant's fee (Advisory) of P10,000.legal fees (advisory) of P15,000, salaries of Wendelle's employees assignedto the implementation of the merger of P16,000, cost of closing duplicatefacilities of P12,000, cost of shareholder's meeting to vote on the mergerof P14,000, cost of printing stock certificates of P7,000, audit andaccountant's fee related to the stock issuance of P3,000, SEC registrationfee of P5,000 and stock listing application fees of P4,000. Based on thepreceding information, under the acquisition method following PFRS 3what amount relating to the business combination would be expensed?

When a cost is expensed, it is recorded on income statement and deducted from revenue to calculate…

Wendelle paid finder's fees of P40,000, acco legal fees (advisory) of P15,000, salaries of V to the implementation of the merger of P16, facilities of P12,000, cost of shareholder's m of P14,000, cost of printing stock certificates accountant's fee related to the stock issuand fee of P5,000 and stock listing application fe preceding information under the acquisition

Wendelle paid finder's fees of P40,000, acco legal fees (advisory) of P15,000, salaries of V to the implementation of the merger of P16, facilities of P12,000, cost of shareholder's m of P14,000, cost of printing stock certificates accountant's fee related to the stock issuand fee of P5,000 and stock listing application fe preceding information under the acquisition

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: P Limited obtained control with the acquisition of an 80% equity interest in the share capital of S…

A: Goodwill is the amount paid by the acquirer in excess of the fair value of net assets of the…

Q: bove, was prepared immediately before this transaction. Provide the Investor Company's balances…

A: A balance sheet is an accounting report that shows a corporation's assets liabilities, and…

Q: Consolidated Equity at the date of acquisition

A: Goodwill is an intangible asset that is related to the takeover of one company by another. In fact,…

Q: BC paid finder's fees of P80,000, legal fees of P26,000, audit fees related to stock issuance of…

A: solution concept as per the provision of IFRS 3 The direct and indirect cost related to business…

Q: 13. Riverdale paid finder's fees ofP40,000, legal fees of P13,000, audit fees related to the stock…

A: Sometimes a company wants to get the control the affairs of the another company and for that the…

Q: In The Process Of the Acquisition, ABC Incorporation Paid In Cash the Following Expenses US…

A: First, we need to identify the expenses that ABC Incorporation has incurred during the acquisition…

Q: COMBINED CORPORATE ENTITIES AND CONSOLIDATIONS

A: Bronze Corporation Statement showing net…

Q: Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring…

A: Journal entries for Pab Corporation regarding the transfer of assets and the corresponding accounts…

Q: 1. Rivendell paid finder's fees of P40,000, acCountant's fee (Advisory) of P10,000, legal fees…

A: Answer: As per given data - Rivendell paid finder’s fee P 40,000.00, accountant’s fee (Advisory) of…

Q: If ABC Co purchases the net assets of XYZ Co by issuing 50,000 shares of their P20 par value…

Q: On the 1/01/x3, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5…

A: The objective of the question is to calculate the group's investment in associate figure in its…

Q: rted by Alakdan Co. ii. The total assets of Alakdan Co. after the business combination. iii. The…

A: Goodwill is referred to as amount which exceeds the fair value of assets and liabilities assumed by…

Q: E Company Ltd, a reporting entity, purchases all the issued shares of D Company Pty Ltd for…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On the 1/01/x3, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5…

A: The objective of the question is to calculate the group's investment in associate figure in its…

Q: etermine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase…

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: (d) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the…

A: Introduction: Acquisition: Acquisition can be defined as situation where all or more than 50% of…

Q: Determine the estimated value of Entity E assuming goodwill is computed through capitalization of…

A: Answered:

Q: An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct…

A: When fair value of the instrument is more than cost of the instrument, then gain to be recognised in…

Q: Prepare and compute for the CONSOLIDATED EQUITY at the date of acquisition.

A: PROMDI CO. acquired the net assets of CARDO CO and SYANO CO PROMDI CO issues CARDO CO = 30000…

Q: ter Corp acquired dinary shares with yment of cash of F

A: Shareholders also invest money in the company and in return they become the owners in proportion to…

Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Wendelle paid finder's fees of P40,000, accountant's fee (Advisory) of P10,000.
legal fees (advisory) of P15,000, salaries of Wendelle's employees assigned
to the implementation of the merger of P16,000, cost of closing duplicate
facilities of P12,000, cost of shareholder's meeting to vote on the merger
of P14,000, cost of printing stock certificates of P7,000, audit and
accountant's fee related to the stock issuance of P3,000, SEC registration
fee of P5,000 and stock listing application fees of P4,000. Based on the
preceding information, under the acquisition method following PFRS 3
what amount relating to the business combination would be expensed?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Arturo pays cash of $4,456,250 to acquire Westmont. No stock is issued and Arturo pays $49,800 for legal fees to complete the transaction. View transaction list Prepare Arturo's journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 Book Value Fair Value $ 644,750 $ 609,000 779,250 1,086,750 1,770,000 2,138,250 842,250 0 (102,000) (102,000) (2,000,000) (500,000) 2 (424,500) (457,000) 289,500 Note: Enter debits before credits. Transaction Record the acquisition of Westmont Company. General Journal Debit Credit >
Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary shares with par and fair value of P100 and P125 per share, respectively and payment of cash of P2,000,000. The assets and liabilities of Simon have fair values of P3,500,000 and P1,200,000, respectively. Peter Corp incurred the following other related cost of acquiring Simon Corp. such as cost of registering shares P120,000 including listing fees of P20,000; due diligence cost of P5,000; legal fees P10,000; broker’s fee P3,000; Audit fee for SEC registration of share issue P25,000; printing cost of share certificates P2,000; pre acquisition audit fee P8,000; and general and administrative cost of maintaining an internal acquisition P30,000. The total goodwill to be recorded by Peter Corp?
On the 1/01/x3, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5 695 000. At acquisition, PA had retained earnings of R1 400 000. When preparing the J Group's consolidated financial statements for the year end date of 31/12/x3, accountants at the group entity are working with the following information: In the x3 financial year, Entity PA made a profit after tax of R 1 230 000; In the x3 financial year, PA paid a dividend totaling R45 000 to its shareholders; At the end of the x3 financial year, the group's investment in PA is found to have impaired by R94 000. Based on this information, calculate the group's investment in associate figure, in its consolidated financial statements dated 31/12/x3.
On the 1/01/x3, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5 695 000. At acquisition, PA had retained earnings of R1 400 000. When preparing the J Group's consolidated financial statements for the year end date of 31/12/x3, accountants at the group entity are working with the following information: In the x3 financial year, Entity PA made a profit after tax of R 1 230 000; In the x3 financial year, PA paid a dividend totaling R45 000 to its shareholders; At the end of the x3 financial year, the group's investment in PA is found to have impaired by R94 000. Based on this information, calculate the group's investment in associate figure, in its consolidated financial statements dated 31/12/x3.
The P Ltd acquires all issued capital of the S Ltd for a consideration of $1,000,000 cash and 800,000 shares each valued at $1.50. The summary statement of the financial position of the subsidiary company immediatelyfollowing the acquisition is:Fair value of assets acquired $2,640,000Fair value of liabilities acquired $720,000Total shareholders’ equity of the subsidiary company $800,000Retained earnings of the subsidiary company $1,120,000Required:(a) Pass the necessary journal entry to record the acquisition(b) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition(c) Pass the necessary consolidation entry to eliminate the subsidiary by the parent company(d) Determine the amount of goodwill (or bargain purchase) arising out of the acquisition if the purchase consideration paid was $1,000,000 cash and 400,000 shares each valued at $1.50
1. How much is the fair value of the net assets of Sub? 2. How much is the goodwill/(gain from bargain purchase) at the date of acquisition? 3. How much is the total assets at the date of acquisition?
odwill to be amortized periodically for 20 years. G. Goodwill to be amortized for 40 years D. Expenses immediately. B. Goodwill not subject to amortization but subject to impairment. 3. Two methods of arranging business combinations: C. Acquisition and uniting of interest D. Merger and acquisition of stocks A/ Merger and consolidation B. Consolidation and Acquisition of stocks . The cost of registering equity securities in a business combination should be recorded as: A. An income of the period B. An expense of the period C. Deduction from additional paid-in capital D. Part of the cost of the stock acquired 5. In acquisition-type combination, the appropriate accounting for the excess of fair values of net assets acquired er the price paid is to: A. Recognize as income in the books of the acquirer B. Recognize as additional paid-in capital in the books of the acquirer blbe C. Reduce proportionately current fair values assigned to the acquiree's non-current assets any remaining excess as…
ABC paid finder's fees of P80,000, legal fees of P26,000, audit fees related to stock issuance of P20,000, stock registration fees of P10,000 and stock listing application fees of P8,000. Based on the given information, under the acquisition method, what amount relating to business combination would be charged to expense?
In The Process Of the Acquisition, ABC Incorporation Paid In Cash the Following Expenses US Accounting fees 30,000 Travel expenses 10,000 Accounting fees (SEC) 10,000 SEC filing fees 20,000 Required: Prepare the journal entry to record the acquisition expenses