HIJ and KLM exchanged equity interest resulting to HIJ obtaining control over KLM. Relevant information follows: HIJ (before combination) Consolidated Identifiable assets 2,200,000.00 3,600,000.00 Goodwill Total Assets 2,200,000.00 ? Liabilities 700,000.00 1,300,000.00 Share Capital (P20 par) 800,000.00 976,000.00 Share Premium 300,000.00 1,092,000.00 Retained Earnings 400,000.00 Total Liabilities and Equity 2,200,000.00 Requirements: Compute for the Goodwill or (Gain on Bargain Purchase).

HIJ and KLM exchanged equity interest resulting to HIJ obtaining control over KLM. Relevant information follows: HIJ (before combination) Consolidated Identifiable assets 2,200,000.00 3,600,000.00 Goodwill Total Assets 2,200,000.00 ? Liabilities 700,000.00 1,300,000.00 Share Capital (P20 par) 800,000.00 976,000.00 Share Premium 300,000.00 1,092,000.00 Retained Earnings 400,000.00 Total Liabilities and Equity 2,200,000.00 Requirements: Compute for the Goodwill or (Gain on Bargain Purchase).

Name: What is the Goodwill (Gain on Bargain Purchase) ? HIJ and KLM exchange
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: What is the Goodwill (Gain on Bargain Purchase) ? HIJ and KLM exchanged equity interest resulting to HIJ obtaining control over KLM. Relevant information follows:HIJ(before combination)ConsolidatedIdentifiable assets2,200,000.00 3,600,000.00Goodwill?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 38P

See similar textbooks

Similar questions

5. On January 1, 20x1, DIAPHANOUS Co. acquired all of the identifiable assets and assumed all of the liabilities of TRANSPARENT, Inc. by paying cash of P4,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of P6,400,000 and P3,600,000, respectively. Additional information:In addition to the business combination transaction, the following have also transcribed during the negotiation period: a. After the business combination, TRANSPARENT will enter into liquidation and DIAPHANOUS agreed to reimburse TRANSPARENT for liquidation costs estimated at P80,000. b. DIAPHANOUS agreed to reimburse TRANSPARENT for the appraisal fee of a building included in the identifiable assets acquired. The agreed reimbursement is P40,000.c. DIAPHANOUS entered into an agreement to retain the top management of TRANSPARENT for continuing employment. On acquisition date, DIAPHANOUS agreed to pay the key employees signing bonuses totaling P400,000.d. To persuade, Mr.…
On January 1, 20X1, Par Inc acquires 85.77% of Sub Corp for $211,625 in cash. Immediately before the acquisition, the book value of Sub's identifiable net assets was $143,426 with a fair value of $161,060, while the book value of Par's net assets was $282,155. What will be the amount of total shareholders' equity on the consolidated balance sheet immediately after the acquisition if the fair-value-enterprise (FVE) method is used? $309,334 b. $333,129 c. $301,402 d. $317,265 e. $325,197
On January 1, 20x1, John Corp. acquired the identifiable net assets of Jose Corp. by paying cash of ₱1,500,000 and issuing 10,000 ordinary shares with par and fair value of ₱100 and ₱120 per share, respectively. The identifiable assets of Jose had book values of ₱3,200,000 and fair values of ₱4,000,000 and its liabilities have book values equal to its fair values amounting to ₱1,500,000. As per agreement, John Corp. agreed to pay additional amount equal to 20% of the 20x1 year-end profit that exceeds ₱500,000 on January 2, 20x2. On the date of acquisition Jon estimated that the fair value of contingent consideration is ₱15,000. Assume the actual profit of ABC on December 31, 20x1 is ₱600,000. What is the gain (loss) on extinguishment of contingent consideration liability.
Pab Corporation decided to establish Sollon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Sollon issued Pab 35,000 shares of $7 par value common stock. The following information is provided on the assets and accounts payable transferred: Cost Book Value Fair Value Cash $ 32,000 $ 32,000 $ 32,000 Inventory 83,000 83,000 83,000 Land 69,000 69,000 99,000 Buildings 188,000 147,000 249,000 Equipment 95,000 74,000 123,000 Accounts Payable 58,000 58,000 58,000 Required: Prepare the journal entry that Pab recorded for the transfer of assets and accounts payable to Sollon Prepare the journal entry that Sollon recorded for the receipt of assets and accounts payable from Pab.
Parent and Sub Inc had the following balance sheets on December 31, 2021 (see image below). On January 1, 2022 Parent purchased all of Sub Inc’s Common Shares for P40,000 in cash. On that date, Sub’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, the Current Assets of the combined entity should be valued at how much? Using the same information, Assuming that Consolidated Financial Statements were prepared on that date, the Goodwill of the combined entity should be valued at how much?
If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: REQUIREMENTS:A. GoodwillB. Consolidated Total Assets at the date of acquisitionC. Consolidated Total Liabilities at the date of acquisitionD. Consolidated Equity at the date of acquisition
ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, 1) Determine the value of the current assets of the combined entity? 2) how much is the Goodwill arising from this Business Combination? 3) how much is the Shareholder’s Equity section of the Consolidated Balance Sheet?
6. ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, a) determine the value of the current assets of the combined entity: b) how much is the Goodwill arising from this Business Combination? c) how much is the Shareholder’s Equity section of the Consolidated Balance Sheet?
Entity A acquired 75% of the outstanding voting shares of Entity B for P1,800,000. On the acquisition date, Entity B's identifiable assets and liabilities have fair values of P4,000,000 and P1,600,000, respectively. Additional information: Entity A replaces Entity B as a guarantor on a loan of a third party. As of the acquisition date, the third party has defaulted on the loan. However, because negotiations for debt restructuring are ongoing with the lender and the Entity strongly believes that the lender will agree to the proposed terms, no provision was recognized. The fair value of the guarantee is P200,000. Entity A chose to measure the non-controlling interest at the NCI's proportionate share in the acquiree's net identifiable assets. Requirement: Compute for the goodwill.
Sheman Corporation exchanged its common stock, worth P500,000 for all of the net assets of Darna Company in a business combination treated as a purchase. At the date of combination, Sheman’s net assets had a book value of P650,000 and a fair value of P900,000. Darna Company’s net assets had a book value of P450,000 and a fair value of P460,000. Immediately following the combination, the net assets of the combined company should have been reported at what amount?
Parent and Sub Inc had the following balance sheets on December 31, 2021 (see image below). On January 1, 2022 Parent purchased all of Sub Inc’s Common Shares for P40,000 in cash. On that date, Sub’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, the Current Assets of the combined entity should be valued at how much? Assuming that Consolidated Financial Statements were prepared on that date, the Goodwill of the combined entity should be valued at how much?
The Elf Co. acquired a 60% interest in the Pea Co. when Pea's equity comprised share capital of P100,000 and retained earnings of P150,000. Pea's current statement of financial position shows share capital of P100,000, a revaluation reserve of P75,000 and retained earnings of P300,000. Under IAS 27, Consolidated and Separate Financial Statements, what amount in respect of the non-controlling interest should be included in Elf Co.'s consolidated statement of financial position?