On January 1, 2021, Amahan Co. acquired all of the assets and assumed all of the liabilities of Anak, Inc. As of this date, the carrying amounts and fair values of the assets and liabilities of Anak acquired by Amahan are shown below: On the negotiation for the business combination, Amahan Co. incurred the following transaction costs: P25,000.00 for legal fees; P 75,000.00 for accounting fees and P 50,000.00 for consultancy fees. Case 2: Amahan Co. paid P1,000,000.00 cash as consideration for the assets and liabilities ofAnak, Inc. 1. How much is the transaction costs incurred during the business combination? a. 50,000.00 b. 75,000.00 c. 125,000.00 d. 150,000.00 2. How much is the Consideration Transferred? a. 1,000,000.00 b. 1,350,000.00 c. 1,500,000.00 d. 1,850,000.00 3. How Much is the Non-Controlling Interest in the acquiree? a. 0.00 b. 150,000.00 c. 310,000.00 d. 500,000.000
Illustration 1. Measuring
On January 1, 2021, Amahan Co. acquired all of the assets and assumed all of the liabilities of Anak, Inc. As of this date, the carrying amounts and fair values of the assets and liabilities of Anak acquired by Amahan are shown below:
On the negotiation for the business combination, Amahan Co. incurred the following
transaction costs: P25,000.00 for legal fees; P 75,000.00 for accounting fees and P 50,000.00 for consultancy fees.
Case 2: Amahan Co. paid P1,000,000.00 cash as consideration for the assets and liabilities ofAnak, Inc.
1. How much is the transaction costs incurred during the business combination?
a. 50,000.00
b. 75,000.00
c. 125,000.00
d. 150,000.00
2. How much is the Consideration Transferred?
a. 1,000,000.00
b. 1,350,000.00
c. 1,500,000.00
d. 1,850,000.00
3. How Much is the Non-Controlling Interest in the acquiree?
a. 0.00
b. 150,000.00
c. 310,000.00
d. 500,000.000
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