Sony Co. issued bonds payable amounting to P500,000 for the new assets of JBL Corp. At the time of the acquisition Sony incurred transaction costs of P20,000 in issuing bonds. The following information was available related to JBL’s financial position. Book Value Fair Value Current Assets 250,000 250,000 Inventories 400,000 500,000 Equipment 200,000 250,000 Liabilities 150,000 150,000 What is the amount of gain or loss on disposal of should the acquiree recognized?

Sony Co. issued bonds payable amounting to P500,000 for the new assets of JBL Corp. At the time of the acquisition Sony incurred transaction costs of P20,000 in issuing bonds. The following information was available related to JBL’s financial position. Book Value Fair Value Current Assets 250,000 250,000 Inventories 400,000 500,000 Equipment 200,000 250,000 Liabilities 150,000 150,000 What is the amount of gain or loss on disposal of should the acquiree recognized?

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 2E

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