On December 1, 2020, Stan Lee Company acquired all of Marvel Inc.’s P2,150,000 identifiable assets and P530,000 liabilities. Book values of the Marvel’s assets and liabilities approximate their fair values except for an overvalued fixture. To acquire the net assets of Marvel, Stan issued its own shares of stock with a market value of P1,715,000 plus cash of P375,000. A contingent consideration of P150,000 is established on the date of acquisition. The business combination resulted to a P650,000 goodwill. Assuming Stan had total assets of P4,890,000 and total liabilities of P2,731,000 prior to the combination, how much is the total assets after the business combination if no additional cash payments were made, but expenses were incurred for related costs amounting to P28,000? After the business combination, how much is the increase in the liabilities of Stan?
On December 1, 2020, Stan Lee Company acquired all of Marvel Inc.’s P2,150,000 identifiable assets and P530,000 liabilities. Book values of the Marvel’s assets and liabilities approximate their fair values except for an overvalued fixture. To acquire the net assets of Marvel, Stan issued its own shares of stock with a market value of P1,715,000 plus cash of P375,000.
A contingent consideration of P150,000 is established on the date of acquisition. The business combination resulted to a P650,000 goodwill.
Assuming Stan had total assets of P4,890,000 and total liabilities of P2,731,000 prior to the combination, how much is the total assets after the business combination if no additional cash payments were made, but expenses were incurred for related costs amounting to P28,000?
After the business combination, how much is the increase in the liabilities of Stan?
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