REQUIREMENTS: A. Consolidated Total Assets at the date of acquisition B. Consolidated Equity at the date of acquisition
REQUIREMENTS: A. Consolidated Total Assets at the date of acquisition B. Consolidated Equity at the date of acquisition
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value shares with a fair value of P35 per share, a P40,000 direct cost and a P50,000 stock issue cost however remain unpaid. The companies also agreed on the following:
- CARDO guarantees the prices of there stocks and promises to pay the peso decline in their
shares within one year. - CARDO Co promises to pay the stockholders of SYANO Co an additional P100,00 if the net income of the company in the next year will be more than P500,000.
- CARDO estimates that there is an 80% probability of achieving the target income.
REQUIREMENTS:
A. Consolidated Total Assets at the date of acquisition
B. Consolidated Equity at the date of acquisition
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