PPP Corporation issued ordinary share capital with a par value of P675,000 and a market value of P1,050,000 to acquire the net asset of SSS Corp. in a business combination. Immediately before the business combination the book and fair values of the net identifiable assets of PPP and SSS are as follows: PPP SS Book Value Book Value Fair Value 690,000 280,500 3,000,000 900,000 Assets Liabilities 813,000 282,000 Determine the amount that should be reported as total assets of the combined entity immediately following the business combination.

PPP Corporation issued ordinary share capital with a par value of P675,000 and a market value of P1,050,000 to acquire the net asset of SSS Corp. in a business combination. Immediately before the business combination the book and fair values of the net identifiable assets of PPP and SSS are as follows: PPP SS Book Value Book Value Fair Value 690,000 280,500 3,000,000 900,000 Assets Liabilities 813,000 282,000 Determine the amount that should be reported as total assets of the combined entity immediately following the business combination.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 1BCRQ

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