7. JBC purchased an ongoing business for P10,000,000 cash. The assets and liabilities of the acquired business measured at fair value are: Cash Accounts Receivable Inventory Land Plant and equipment Accounts Payable Bonds Payable P 525,000 2,075,000 2,500,000 4,125,000 6,065,000 (895,000) (3,895,000) What is the amount of gain on bargain purchase? a. P 500,000 b. P 550,000 c. P 625,000 d. P 400,000

7. JBC purchased an ongoing business for P10,000,000 cash. The assets and liabilities of the acquired business measured at fair value are: Cash Accounts Receivable Inventory Land Plant and equipment Accounts Payable Bonds Payable P 525,000 2,075,000 2,500,000 4,125,000 6,065,000 (895,000) (3,895,000) What is the amount of gain on bargain purchase? a. P 500,000 b. P 550,000 c. P 625,000 d. P 400,000

Name: 7. JBC purchased an ongoing business for P10,000,000 cash. Theassets
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Description: 7. JBC purchased an ongoing business for P10,000,000 cash. Theassets and liabilities of the acquired business measured at fair valueare:CashAccounts ReceivableInventoryLandPlant and equipmentAccounts PayableBonds Payable525,000c. P 625,000d. P 400,0

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

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