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:REQUIREMENTS: Consolidated Equity at the date of acquisition PROBLEM 2ABC Co. is acquiring XYZ Inc. XYZ has the following unrecorded intangible assets:Patent on a product P10,000.Customer list with an observable fair value of P50,000.A 5-year operating lease with favorable terms with a discounted present value of P8,000.Skilled workforce, P150,000Identifiable R&D of P100,000Advertising contracts, P12,000.ABC will record how much for acquired Intangible Assets from the purchase of XYZ Inc.? The following balances were taken from the trial balance of CARDO Company and SYANO Company at thestart of the fiscal year 20x7:CARDO COMPANYBook ValueFair ValueBook ValueFair ValueAccounts PayableP450,000200,000595,000260,000CashP500,000P500,000240,000 Mortgage Payable200,000 Ordinary Shares520,000 Retained EarningsP440,000220,000250,000155,000600,000Accounts ReceivableLOInventoryFixed Assets (Net)SYANO COMPANYBook ValueFair ValueBook ValueFair ValueAccounts PayableP340,000220,000CashP300,000150,000125,000400,000P300,000160,000 Mortgage Payable100,000 Ordinary Shares420,000 Retained EarningsP350,000200,000250,000175,000Accounts ReceivableInventoryFixed Assets (Net)RST

Answered: Consolidated Equity at the date of…

Business

Accounting

Consolidated Equity at the date of acquisition

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 75P

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