On December 1, 2021. LETSEE Corporation acquired for P1,750,000 all the net assets of SATER Company. On the date of the combination , the carrying value of SATER Company's identifiable net assets was P1,437,500. The current fair value of all identifiable net assets of SATER Company were equal to their carrying values, except for its inventories and plants assets. The current fair value of SATER Company's inventories was P250,000 less than their carrying values, and the current fair value of SATER Company's plant asset was P500,000 more than their carrying amount. The journal entry prepared by LETSEE Corporation to record the business combination.
On December 1, 2021. LETSEE Corporation acquired for P1,750,000 all the net assets of SATER Company. On the date of the combination , the carrying value of SATER Company's identifiable net assets was P1,437,500. The current fair value of all identifiable net assets of SATER Company were equal to their carrying values, except for its inventories and plants assets. The current fair value of SATER Company's inventories was P250,000 less than their carrying values, and the current fair value of SATER Company's plant asset was P500,000 more than their carrying amount. The journal entry prepared by LETSEE Corporation to record the business combination.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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