On July 1, 2019, Shark Company purchased all of the outstanding stock of Sfin Company for P8,000,000. At that time, Sfin Company's statement of financial position showed net assets of P5,000,000. Sfin Company's assets and liabilities had fair market values different from their book values, as follows: Book Fair Value Value Plant assets - net 10M 11.5M Other assets 1M 700,000 Long-term debt 6M 5.6M
On July 1, 2019, Shark Company purchased all of the outstanding stock of Sfin Company for P8,000,000. At that time, Sfin Company's statement of financial position showed net assets of P5,000,000. Sfin Company's assets and liabilities had fair market values different from their book values, as follows: Book Fair Value Value Plant assets - net 10M 11.5M Other assets 1M 700,000 Long-term debt 6M 5.6M
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 9RE
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