Prepare and compute for the CONSOLIDATED TOTAL ASSETS at the date of acquisition. If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDICo will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balancesheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI inthe acquisition:PROMDI COMPANYFair ValueBook ValueBook Value Fair ValueCashAccounts ReceivableInventoryP1,500,000 P1,500,000 Accounts Payable750,000P1,450,000 P1,440,000740,000 Mortgage Payable340,000 Ordinary Shares900,000920,000355,000600,000Fixed Assets (Net)1,600,0001,520,000 Retained Earnings1,255,000PROMDICARDOSYANOFair value of shares302825Direct costs50,00040,000Indirect costs35,00045,000Stock issue costs155,00050,000

If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition:

If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition:

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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