6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the transaction, the acquire had P800,000 of liabilities The assets of the acquiree at fair value were P1,900,000 for current assets and P1,600,000 for noncurrent assets. What is the amount of gain on bargain purchase? a. P 700,000 b. P-700,000 c. P 800,000 d. P-800,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6. Tulip Company purchased the net assets of another entity for
P2,000,000. On the sate of the transaction, the acquire had
P800,000 of liabilities
The assets of the acquiree at fair value were $1,900,000 for current
assets and P1,600,000 for noncurrent assets.
What is the amount of gain on bargain purchase?
a. P 700,000
b. P-700,000
c. P 800,000
d. P-800,000
Transcribed Image Text:6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the transaction, the acquire had P800,000 of liabilities The assets of the acquiree at fair value were $1,900,000 for current assets and P1,600,000 for noncurrent assets. What is the amount of gain on bargain purchase? a. P 700,000 b. P-700,000 c. P 800,000 d. P-800,000
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