Acquirer Company purchased the net asset of Acquiree Company by paying cash of P800,000 and issuing shares with a fair market value of P3,110,000 on January 2, 2021. The statement of financial position of both companies is as follows (see image below). Acquirer determined that the fair values of the assets acquired and liabilities assumed approximated their book values. Acquirer also incurred and paid legal and brokerage fees of P25,000 for business combination, share issue cost of P15,000 and indirect acquisition costs of P10,000. How much is the total assets after business combination? Acquirer 4,500,000 1,200,000 1,500,000 1,800,000 Acquiree 450,000 950,000 700,000 1,520,000 90,000 3,710,000 Cash Accounts Receivable Inventory Equipment Goodwill Total 9,000,000 1,000,000 1,600,000 900,000 5,500,000 9,000,000 550,000 600,000 950,000 1,610,000 3,710,000 Liabilities Share Capital Share Premium Retained Earnings Total
Acquirer Company purchased the net asset of Acquiree Company by paying cash of P800,000 and issuing shares with a fair market value of P3,110,000 on January 2, 2021. The statement of financial position of both companies is as follows (see image below). Acquirer determined that the fair values of the assets acquired and liabilities assumed approximated their book values. Acquirer also incurred and paid legal and brokerage fees of P25,000 for business combination, share issue cost of P15,000 and indirect acquisition costs of P10,000. How much is the total assets after business combination? Acquirer 4,500,000 1,200,000 1,500,000 1,800,000 Acquiree 450,000 950,000 700,000 1,520,000 90,000 3,710,000 Cash Accounts Receivable Inventory Equipment Goodwill Total 9,000,000 1,000,000 1,600,000 900,000 5,500,000 9,000,000 550,000 600,000 950,000 1,610,000 3,710,000 Liabilities Share Capital Share Premium Retained Earnings Total
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:24
Acquirer Company purchased the net asset of Acquiree Company by paying cash of P800,000
and issuing shares with a fair market value of P3,110,000 on January 2, 2021. The statement of
financial position of both companies is as follows (see image below).
Acquirer determined that the fair values of the assets acquired and liabilities assumed
approximated their book values. Acquirer also incurred and paid legal and brokerage fees of
P25,000 for business combination, share issue cost of P15,000 and indirect acquisition costs of
P10,000.
How much is the total assets after business combination?
Acquirer
4,500,000
1,200,000
1,500,000
1,800,000
Acquiree
450,000
950,000
700,000
1,520,000
90,000
3,710,000
Cash
Accounts Receivable
Inventory
Equipment
Goodwill
Total
9,000,000
Liabilities
1,000,000
1,600,000
900,000
5,500,000
9,000,000
550,000
600,000
950,000
1,610,000
3,710,000
Share Capital
Share Premium
Retained Earnings
Total
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