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6. ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. how much is the Goodwill arising from this Business Combination? how much is the Shareholder’s Equity section of the Consolidated Balance Shee

6. ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. how much is the Goodwill arising from this Business Combination? how much is the Shareholder’s Equity section of the Consolidated Balance Shee

FINANCIAL ACCOUNTING
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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6. ABC and XYZ Inc had the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. how much is the Goodwill arising from this Business Combination? how much is the Shareholder’s Equity section of the Consolidated Balance Sheet?
Current Assets Fixed Assets (net) Total Assets Current Liabilities Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity ABC P 60,000 100,000 P160.000 P 42,000 20,000 90,000 8,000 P160.000 XYZ P10,000 60,000 P70.000 P35,000 12,000 12,000 11,000 P70.000
Transcribed Image Text:Current Assets Fixed Assets (net) Total Assets Current Liabilities Bonds Payable Common Shares Retained Earnings Total Liabilities and Equity ABC P 60,000 100,000 P160.000 P 42,000 20,000 90,000 8,000 P160.000 XYZ P10,000 60,000 P70.000 P35,000 12,000 12,000 11,000 P70.000
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