FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Portfolio Management
Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investme…
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COMPUTE FOR THE GOODWILL.

If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: PROMDI COMPANY Fair Value Book Value Book Value Fair Value Cash Accounts Receivable Inventory P1,500,000 P1,500,000 Accounts Payable 750,000 P1,450,000 P1,440,000 740,000 Mortgage Payable 340,000 Ordinary Shares 900,000 920,000 355,000 600,000 Fixed Assets (Net) 1,600,000 1,520,000 Retained Earnings 1,255,000 PROMDI CARDO SYANO Fair value of shares 30 28 25 Direct costs 50,000 40,000 Indirect costs 35,000 45,000 Stock issue costs 155,000 50,000
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Transcribed Image Text:If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: PROMDI COMPANY Fair Value Book Value Book Value Fair Value Cash Accounts Receivable Inventory P1,500,000 P1,500,000 Accounts Payable 750,000 P1,450,000 P1,440,000 740,000 Mortgage Payable 340,000 Ordinary Shares 900,000 920,000 355,000 600,000 Fixed Assets (Net) 1,600,000 1,520,000 Retained Earnings 1,255,000 PROMDI CARDO SYANO Fair value of shares 30 28 25 Direct costs 50,000 40,000 Indirect costs 35,000 45,000 Stock issue costs 155,000 50,000
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