Gerry Company is a subsidiary of Nette Company and its shares are not traded in any capital market. Nette Company produces consolidated financila statements for the group and complies with the PFRS. On January 1, 2020, Gerry Company acquired 100,000 ordinary shares of Nette Company for P6,000,000. At the date of purchase, Nette had 500,000 outstanding ordinary shares and shareholders' equity of P20,000,000. During the year 2020, Nette reported profit of P1,000,000 and declared and paid cash dividends of P1.50 per share. The fair value of Nette's share at December 31, 2020 was P68. What amount shall Gerry Company recognize in profit or loss for the year 2020 if it designated the investment as at fair value through profit or loss? A P150,000 B) P200,000 P350,000 D) P950,000

Gerry Company is a subsidiary of Nette Company and its shares are not traded in any capital market. Nette Company produces consolidated financila statements for the group and complies with the PFRS. On January 1, 2020, Gerry Company acquired 100,000 ordinary shares of Nette Company for P6,000,000. At the date of purchase, Nette had 500,000 outstanding ordinary shares and shareholders' equity of P20,000,000. During the year 2020, Nette reported profit of P1,000,000 and declared and paid cash dividends of P1.50 per share. The fair value of Nette's share at December 31, 2020 was P68. What amount shall Gerry Company recognize in profit or loss for the year 2020 if it designated the investment as at fair value through profit or loss? A P150,000 B) P200,000 P350,000 D) P950,000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 23P

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On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. 1. Determine the fair value of consideration transferred on the business combination? 2. how many shares were issued in the business combination? 3. how much is the acquisition-date fair value per share?
On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. Determine the fair value of consideration transferred on the business combination.
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On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. How much is the gain on acquisition or goodwill to be recognized?
On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. how much is the gain on acquisition or goodwill to be recognized? what is the retained earnings of the combined entity immediately after the business combination?