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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:  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 combi

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 combi

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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: 

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.

АВС Со (carrying amounts) (fair values) XYZ Inc Combined Identifiable assets 9,600,000 6,400,000 16,000,000 Goodwill ? Total assets 9,600,000 6,400,000 ? Liabilities 2,800,000 3,600,000 6,400,000 Share capital Share premium Retained earnings Total liabilities & equity 2,400,000 1,200,000 2,800,000 1,200,000 1,000,000 4,800,000 3,200,000 600,000 9,600,000 6,400,000
Transcribed Image Text:АВС Со (carrying amounts) (fair values) XYZ Inc Combined Identifiable assets 9,600,000 6,400,000 16,000,000 Goodwill ? Total assets 9,600,000 6,400,000 ? Liabilities 2,800,000 3,600,000 6,400,000 Share capital Share premium Retained earnings Total liabilities & equity 2,400,000 1,200,000 2,800,000 1,200,000 1,000,000 4,800,000 3,200,000 600,000 9,600,000 6,400,000
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