1. Use the following information for the next five questions:On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. Determine the fair value of consideration transferred on the business combination? 2. Using the same information in #1, a) how many shares were issued in the business combination? b) how much is the acquisition-date fair value per share? (two answers) 3. Using the information in #1, how much is the gain on acquisition or goodwill to be recognized? 4. Using the same information in #1, what is the retained earnings of the combined entity immediately after the business combination?
1. Use the following information for the next five questions:On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabilities of XYZ, Inc. by issuing its own ordinary shares. Information at acquisition date is shown below: (see image below) Additional information: 1. ABC Co's share capital consists of 60,000 ordinary shares with par value of ₱40 per share. 2. XYZ's share capital consists of 3,000 ordinary shares with par value of ₱400 per share. Determine the fair value of consideration transferred on the business combination?
2. Using the same information in #1, a) how many shares were issued in the business combination? b) how much is the acquisition-date fair value per share? (two answers)
3. Using the information in #1, how much is the gain on acquisition or
4. Using the same information in #1, what is the
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