, C, and D are companies to be combined. Just prior to the combination, their individual stockholder’s equity consists of the following balances: Company A is the surviving entity. It issued 20,000, P69 par value ordinary shares, with FMV of P91; dispersed to the stockholders of the acquired companies. 1. How much goodwill is to be recognized assuming that the net assets are fairly valued? a. P 845,000.00 b. P 695,000.00 c. P 485,000.00 d. P 440,000.00 2. Following the problem above, how much is the Share Premium of the combined entity after the combination? a. P 845,000.00 b. P 695,000.00
, C, and D are companies to be combined. Just prior to the combination, their individual stockholder’s equity consists of the following balances: Company A is the surviving entity. It issued 20,000, P69 par value ordinary shares, with FMV of P91; dispersed to the stockholders of the acquired companies. 1. How much goodwill is to be recognized assuming that the net assets are fairly valued? a. P 845,000.00 b. P 695,000.00 c. P 485,000.00 d. P 440,000.00 2. Following the problem above, how much is the Share Premium of the combined entity after the combination? a. P 845,000.00 b. P 695,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A, B, C, and D are companies to be combined. Just prior to the combination, their individual
Company A is the surviving entity. It issued 20,000, P69 par value ordinary shares, with FMV of
P91; dispersed to the stockholders of the acquired companies.
1. How much
a. P 845,000.00
b. P 695,000.00
c. P 485,000.00
d. P 440,000.00
2. Following the problem above, how much is the Share Premium of the combined entity after
the combination?
a. P 845,000.00
b. P 695,000.00
c. P 485,000.00
Transcribed Image Text:A
В
D
Ordinary Shares
600,000.00
120,000.00
450,000.00
150,000.00
Share Premium
150,000.00
60,000.00
45,000.00
Ret ained Earnings
180,000.00
90,000.00
270,000.00
45,000.00
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