Determine the total assets of Lamp Co. immediatelty after the business combination if contingetn expenses of P100,000 are estimated to be incurred after 1 year. The following are the balances of Chair Company and Table Company as of January 1, 2002.Chair CompanyBook ValueFair ValueAssets4,000,0004,200,000Liabilities1,000,000900,000Table CompanyBook ValueFair ValueAssets3,000,0002,900,000Liabilities500,000600,000The companies combined their resources and formed Lamp Co. The new company issues 6,000shares of 500 par value common stocks with fair value of P600 and pays additional 500,00o.The company also incurs direct costs of 50,000 and indirect cost of 20,000.Determine the total assets of Lamp Co. immediately after the businesscombination if contingent expenses of P100,000 are estimated to be incurred after1 year.

Business combination refers to the process of combining two or more business in a single entity. It…

The following are the balances of Chair Company and Table Company as of January 1, 2002. Chair Company Book Value Fair Value Assets 4,000,000 4,200,000 Liabilities 1,000,000 900,000 Table Company Book Value Fair Value Assets 3,000,000 2,900,000 Liabilities 500,000 б0,000 The companies combined their resources and formed Lamp Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,00o. The company also incurs direct costs of 50,000 and indirect cost of 20,000. Determine the total assets of Lamp Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 year.

The following are the balances of Chair Company and Table Company as of January 1, 2002. Chair Company Book Value Fair Value Assets 4,000,000 4,200,000 Liabilities 1,000,000 900,000 Table Company Book Value Fair Value Assets 3,000,000 2,900,000 Liabilities 500,000 б0,000 The companies combined their resources and formed Lamp Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,00o. The company also incurs direct costs of 50,000 and indirect cost of 20,000. Determine the total assets of Lamp Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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