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19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company for an amount which is P300,000 over the book value of interest acquired. On this date balance sheet of Alpha Company and Beta Company are as follows: Alpha Company Beta Company Assets P7,500,000 1,700,000 1,150,000 5,000,000 200,000 P15,550,000 P1,300,000 450,000 800,000 1,050,000 50,000 P3,650,000 Cash Accounts Receivable Inventories Equipment (net) Patents Total Assets Liabilities & Equity Accounts Payable Notes Payable Ordinary Share Capital Ordinary Share Premium Retained Earnings Total Liabilities & Equity P200,000 P600,000 2,000,000 5,000,000 6,750,000 1,200,000 P15,550,000 2,000,000 600,000 850,000 P3,650,000 The identifiable assets and liabilities of Beta Company are fairly valued except for inventories which is undervalued by P100,000 while equipment is overvalued by P50,000. Paid direct and indirect expenses of P30,000 and 20,000, respectively. How much is the goodwill recognized on the business combination? a. P450,000 b. P350,000 c. P550,000 d. P250,000 dom 20. How much is the consolidated assets as of date of acquisition? a. P19,450,000 b. P15,950,000 c. P15,900,000 d. P15,700,000

19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company for an amount which is P300,000 over the book value of interest acquired. On this date balance sheet of Alpha Company and Beta Company are as follows: Alpha Company Beta Company Assets P7,500,000 1,700,000 1,150,000 5,000,000 200,000 P15,550,000 P1,300,000 450,000 800,000 1,050,000 50,000 P3,650,000 Cash Accounts Receivable Inventories Equipment (net) Patents Total Assets Liabilities & Equity Accounts Payable Notes Payable Ordinary Share Capital Ordinary Share Premium Retained Earnings Total Liabilities & Equity P200,000 P600,000 2,000,000 5,000,000 6,750,000 1,200,000 P15,550,000 2,000,000 600,000 850,000 P3,650,000 The identifiable assets and liabilities of Beta Company are fairly valued except for inventories which is undervalued by P100,000 while equipment is overvalued by P50,000. Paid direct and indirect expenses of P30,000 and 20,000, respectively. How much is the goodwill recognized on the business combination? a. P450,000 b. P350,000 c. P550,000 d. P250,000 dom 20. How much is the consolidated assets as of date of acquisition? a. P19,450,000 b. P15,950,000 c. P15,900,000 d. P15,700,000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
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an amount which is P300,000 over the book value of interest acquired. On this date, the 19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company for CHAPTER 2: CON SOLIDATION - D ATE OF ACQUISITION KOITIZI105 Page 194 19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company e an amount which is P300,000 over the book value of interest acquired. On this date OF balance sheet of Alpha Company and Beta Company are as follows: Alpha Company Beta Company 000.05E Assets P7,500,000 0,20 P1,300,000 450,000 800,000 -0-1,050,000 Cash 1,700,000 1,150,000 5,000,000 200,000 Accounts Receivable Inventories Equipment (net) 50,000 Patents Total Assets P15,550,000 P3,650,000 Liabilities & Equity Accounts Payable Notes Payable Ordinary Share Capital Ordinary Share Premium Retained Earnings Total Liabilities & Equity P200,000 P600,000 2,000,000 5,000,000 6,750,000 1,200,000 P15,550,000 2,000,000 600,000 850,000 P3,650,000 The identifiable assets and liabilities of Beta Company are fairly valued except for inventories which is undervalued by P100,000 while equipment is overvalued by P50,000. Paid direct and indirect expenses of P30,000 and 20,000, respectively. How much is the goodwill recognized on the business combination? a. P450,000 b. P350,000 c. P550,000 d. P250,000 20. How much is the consolidated assets as of date of acquisition? a. P19,450,000 b. P15,950,000 c. P15,900,000 d. P15,700,000
Transcribed Image Text:an amount which is P300,000 over the book value of interest acquired. On this date, the 19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company for CHAPTER 2: CON SOLIDATION - D ATE OF ACQUISITION KOITIZI105 Page 194 19. On January 5, 2020, Alpha Company acquired 100% of the shares of Beta Company e an amount which is P300,000 over the book value of interest acquired. On this date OF balance sheet of Alpha Company and Beta Company are as follows: Alpha Company Beta Company 000.05E Assets P7,500,000 0,20 P1,300,000 450,000 800,000 -0-1,050,000 Cash 1,700,000 1,150,000 5,000,000 200,000 Accounts Receivable Inventories Equipment (net) 50,000 Patents Total Assets P15,550,000 P3,650,000 Liabilities & Equity Accounts Payable Notes Payable Ordinary Share Capital Ordinary Share Premium Retained Earnings Total Liabilities & Equity P200,000 P600,000 2,000,000 5,000,000 6,750,000 1,200,000 P15,550,000 2,000,000 600,000 850,000 P3,650,000 The identifiable assets and liabilities of Beta Company are fairly valued except for inventories which is undervalued by P100,000 while equipment is overvalued by P50,000. Paid direct and indirect expenses of P30,000 and 20,000, respectively. How much is the goodwill recognized on the business combination? a. P450,000 b. P350,000 c. P550,000 d. P250,000 20. How much is the consolidated assets as of date of acquisition? a. P19,450,000 b. P15,950,000 c. P15,900,000 d. P15,700,000
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