Parent corporation issued on March 31, 2021 500,000 shares of its P10 par ordinary shares, P40 market value per share, to acquire all of the outstanding P25 par value ordinary share of subsidiary A Company and 100,000 shares of the same P10 par ordinary shares of all the outstanding P55 par value ordinary shares of Subsidiary B Company. On this date the fair values of Subsidiary A Company’s assets and liabilities equaled their book values, except for its long-term investment in marketable equity securities for which the aggregate market value exceeded cost by 500,000. The fair values of Subsidiary B Company's assets and liabilities equaled their book values except for the property plant and equipment which is P800,000 less than the carrying values and inventories which is P100,000 more than the carrying value. On March 31, 2021, immediately before the combination, the stockholders’ equities were: Subsidiary A Company Subsidiary B Company Ordinary Shares 5,500,000 2,500,000 Additional Paid in Capital 4,200,000 470,000 Retained Earnings 7,360,000 2,430,000 Total 17,060,000 5,400,000 The total goodwill to be recognized by Parent Corporation as a result of the business combination is?
22. Parent corporation issued on March 31, 2021 500,000 shares of its P10 par ordinary shares, P40 market value per share, to acquire all of the outstanding P25 par value ordinary share of subsidiary A Company and 100,000 shares of the same P10 par ordinary shares of all the outstanding P55 par value ordinary shares of Subsidiary B Company. On this date the fair values of Subsidiary A Company’s assets and liabilities equaled their book values, except for its long-term investment in marketable equity securities for which the aggregate market value exceeded cost by 500,000. The fair values of Subsidiary B Company's assets and liabilities equaled their book values except for the property plant and equipment which is P800,000 less than the carrying values and inventories which is P100,000 more than the carrying value.
On March 31, 2021, immediately before the combination, the
Subsidiary A Company Subsidiary B Company
Ordinary Shares 5,500,000 2,500,000
Additional Paid in Capital 4,200,000 470,000
Retained Earnings 7,360,000 2,430,000
Total 17,060,000 5,400,000
The total
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