On January 1, 2021, the fair values of CHAESOO Inc. net assets were as follows:
On January 1, 2021, the fair values of CHAESOO Inc. net assets were as follows:
Current assets P100,000
Equipment 150,000
Land 50,000
Buildings 300,000
Liabilities 80,000
On January 1, 2021, BLACKPINK Corp. purchased the net assets of CHAESOO by issuing 100,000
shares of its P1 par value stock when the fair value of the stock was P6.20. It was further agreed that
BLACKPINK would pay an additional amount on January 1, 2023, if the average income during the
2- year period of 2021 – 2022 exceeded P80,000 per year. The expected value of this consideration was
calculated as P184,000; the measurement period is one year.
Requirement:
Compute for the
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