Abakada Incorporated acquired all the assets and liabilities of Egaha Company on January 1,2018. The consideration are as follows:CashEquipmentCash contingencyStock contingencyBank loan, at face valueThe cash payments are distributed to the following payees:Former owners of Egaha CompanyLawyers for legal servicesActuarial for valuation of Egaha's net assetsBank, transaction costs for the bank loan2,000,000500,00030,00050,0001,000,000Business CombinationPage 4 of 51,800,00080,00050,00070,000Answer the following independent questions:19. If the fair value of net assets of Egaha amounted to Php3,000,000, how much is the goodwill(bargain purchase gain) on business combination?20. If bargain purchase gain on the acquisition amounted to Php40,000, how much could bethe fair value of net assets acquired?

The term "acquisition" describes when one firm buys another, and the acquired company merges with…

Abakada Incorporated acquired all the assets and liabilities of Egaha Company on January 1, 2018. The consideration are as follows: Cash Equipment Cash contingency Stock contingency Bank loan, at face value 2,000,000 500,000 30,000 50,000 1,000,000 The cash payments are distributed to the following payees: Former owners of Egaha Company Lawyers for legal services Actuarial for valuation of Egaha's net assets Bank, transaction costs for the bank loan Business Combination Page 4 of 5 1,800,000 80,000 50,000 70,000 Answer the following independent questions: 19. If the fair value of net assets of Egaha amounted to Php3,000,000, how much is the goodwill (bargain purchase gain) on business combination? 20. If bargain purchase gain on the acquisition amounted to Php40,000, how much could be the fair value of net assets acquired?

Abakada Incorporated acquired all the assets and liabilities of Egaha Company on January 1, 2018. The consideration are as follows: Cash Equipment Cash contingency Stock contingency Bank loan, at face value 2,000,000 500,000 30,000 50,000 1,000,000 The cash payments are distributed to the following payees: Former owners of Egaha Company Lawyers for legal services Actuarial for valuation of Egaha's net assets Bank, transaction costs for the bank loan Business Combination Page 4 of 5 1,800,000 80,000 50,000 70,000 Answer the following independent questions: 19. If the fair value of net assets of Egaha amounted to Php3,000,000, how much is the goodwill (bargain purchase gain) on business combination? 20. If bargain purchase gain on the acquisition amounted to Php40,000, how much could be the fair value of net assets acquired?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The administrative expenses are for trustees and other costs of administering the debtor corporation’s estate. How much must be received by the creditors, respectively?
198. Subject : - Accounting
ABC Company is beginning the process of liquidation. ABC has prepared a statement of financial affairs that discloses the following data: Assets pledged with secured creditors $ 210,000 Secured liabilities 125,000 Assets pledged with partially secured creditors 290,000 Free assets (not including excess to be received from assets pledged on secured liabilities) 225,000 Unsecured liabilities with priority 121,000 Unsecured liabilities 450,000 ABC owes $45,000 to Wallace Company, an unsecured creditor (without priority). How much money can Wallace Company expect to collect from ABC?
In January 1, 2015, Fun company purchased Company A for $40,000 in cash and paid immediately. Fun company assumed all of Company A's assets and assumed Company A's liabilities. company A has assets valued at $60,000 and liabilities valued at $50,000. question: what is the amount of GOODWILL that should be recorded on Fun company's books? provide the journal entry for the acquisition of company A. Make sure to include account classifications and label debits and credits. please show work so I can understand. Thanks!
The general ledger of Grumpy Corporation as of December 31, 2021, includes the following accounts: Соprights Deposits with advertising agency (will be used to promote goodwill) 27,000 Discount on bonds payable Excess of cost over fair value of identifiable net assets of Р30,000 70,000 acquired subsidiary Trademarks 90,000 90,000 In the preparation of Grumpy's balance sheet as of December 31, 2021, what should be reported as total intangible assets?
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, FVAD of $1 and PVAD of$1) (Use appropriate factor(s) from the tables provided.) 1.On June 30, 2021, the Johnstone Company purchased equipment form Genovese Corp. Johnstone agreed to pay Genovese $20,000 on the purchase date and the balance in five annual installments of $8,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? 2.Johnstone needs to accumulate sufficient funds to pay a $5000,000 debt that comes due on December 31, 2026. The company will accumulate the funds by making five equal annual deposits to an account paying 9% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2021. 3.On January 1, 2021, Johnstone leased…
Coronary, Inc. had the following transactions during 2020: Purchased new fixed assets for $35,000 Converted $20,000 worth of preferred shares to common shares Received cash dividends of $11,000. Paid cash dividends of $20,000. • Repaid mortgage principal of $17,000 . . . Assuming Coronary follows U.S. GAAP, which of the following amounts represents Coronary's cash flows from investing and cash flows from financing in 2020? Investing: ($35,000); Financing: ($37,000) Investing: ($24,000); Financing: ($26,000) Investing: ($35,000): Financing: ($26,000)
As of June 30, 2023, Alpha Ltd disclosed the following details regarding its assets and liabilities from its balance sheet: Assets ($000): Computer equipment at purchase price: 300 Accumulated depreciation: (60) Accounts receivable: 100 Allowance for doubtful accounts: (10) Liabilities: Warranty cost provision: 30 Provision for long service leave benefits: 20 Alpha Ltd depreciates its computer equipment over five years for accounting purposes but over three years for tax purposes, using the straight-line depreciation method. No payments were made for long service leave or warranty claims during the fiscal year. Determine the value of each temporary difference for Alpha Ltd as of June 30, 2023. Calculate the carrying amount and tax base, and specify whether each temporary difference is deductible or taxable.
On 1 July 2017, Bright Star Ltd was incorporated. The accounting profit and other relevant information of Bright Star for the two years to 2019 are as follows: 2019 2018 Profit before tax $4 500 000 $3 600 000 Warranty expense 1500 000 Depreciation expense - machinery 60 000 60 000 Gain on sale of machinery for accounting Warranty paid 750 000 Tax depreciation - machinery 90 000 90 000 Gain on sale of machinery for tax 750 000 1500 000 Provision for warranty - carrying amount Provision for warranty-tax base Machinery - carrying amount 180 000 240 000 Machinery - tax base 210 000 120 000 The company tax rate is 30%. Required (a) Calculate the current and deferred tax of Bright Star Ltd for each year, 2018 and 2019 (b) Prepare the required tax journal entries for each year.
Please solve the question ASAP.
Please answer competely and properly
YSA Inc. provided the following information on December 31, 2021: Cash 5,000,000 Financial assets at fair value through profit or loss, including cost of P500,000 of YSA Inc. 2,500,000 Accounts receivable 3,000,000 Inventory 1,000,000 Land 30,000,000 Equipment 10,000,000 Accumulated depreciation - equipment 6,000,000 Building 40,000,000 Accumulated depreciation - building 14,000,000 Furniture and Fixtures 15,000,000 Accumulated depreciation - Furniture and Fixtures 3,900,000 Accounts payable, after deducting debit balances in supplier's accounts amounting to P200,000 4,500,000 Accrued expenses payable 500,000 Bonds payable, due December 31, 2022 3,500,000 Discount on bonds payable 500,000 Deferred tax liability 300,000 Dividends payable 400,000 Credit balances of customers' accounts 50,000 Share dividend payable 200,000 15% note payable issued on July 1, 2020, maturing on July 1, 2022 6,000,000 20% note payable issued on August 31, 2020, maturing on August 31, 2021 3,000,000…