Calculate the goodwill from the business combination. A. P10,000,000 C. P10,040,000 B. P10,025,000 D. P10,060,000 Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016. The quoted market price of SBMA and HIMYM shares are P36 andP40, respectively.SBMA Inc.HIMYM Inc.Book ValueFair ValueBook ValueFair ValueCurrent8,000,0009,000,00024,000,00024,000,000assetsPlant22,000,000 26,000,00026,000,00025,000,000assetsTotals30,000,000 35,000,00050,000,00049,000,000Liabilities5,000,0005,000,00015,000,00015,000,000Common Stocks,10,000,00020,000,000P10APIC1,000,0003,000,000Retained14,000,00012,000,000EarningsTotals30,000,00050,000,000 HIMYM Inc. acquires all the net assets of SBMA by issuing 1,000,000 of its own shares. PCIB Company incurred the following out of pocket costsrelating to the acquisition:Legal fees to arrange the business combination25,000Cost of shares SEC registration142,000Cost of printing and issuing new stock certificates3,000Indirect cost of combination20,000Finder's fees35,000The total retained earnings of the surviving company after the combination is

Total purchase consideration = (No. of shares issued x quoted market price) = (100000 shares x P40)…

Answered: Summary information is given for SBMA,…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6CE

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The shareholders’ equity section of JAO Co. revealed the ff. on Dec. 31, 2015: Preference share (P100 par) P2,300,000; Share Premium – Preference: P805,000; Ordinary share (P15 par) P5,250,000; Share Premium – Ordinary: P2,750,000; Subscribed ordinary shares: P50,000; Accumulated Profits and losses: P1,900,000. How much is the legal capital? a. P13,055,000 b. P7,600,000 c. P7,550,000 d. P11,150,000
Summary information is given for SBMA, Inc. and PCIB Company at July 1, 2016. The quoted market price of SBMA and PCIB shares are P36 and P40, respectively. SBMA and PCIB are both SMES. SBMA, Inc. Book value Fair value Book value Fair value PCIB Company P 8,000,000P 9,000,000P24,000,000P24,000,000 22,000,000 26,000,000 26,000,000 25,000,000 P30,000,000P35,000,000P50,000,000P49,000,000 5,000,000 5,000,00015,000,00015,500,000 20,000,000 3,000,000 12,000,000 P50,000,000 Current assets Plant assets Totals Liabilities Common stocks, P10 par10,000,000 ΑΡIC Retained earnings_14,000,000 Totals 1,000,000 P30,000,000 PCIB Company acquires all the net assets of SMBA by issuing 1,000,000 of its own shares. PCIB Company incurred the following out of pocket costs relating to the acquisition. Legal fees to arrange business combination Cost of SEC registration Cost of printing and issuing new stock certificates Indirect cost of combination P25,000 12,000 3,000 20,000 35,000 Finder's fees 42. Calculate…
Allison & Company and Bee, Incorporated, reported the following numbers (in millions except for per share price) for fiscal year 2021. \table[[Allison & Company,Dee, Incorporated,], [Shares outstanding,S605.70, S227.24
The following data are extracted from the shareholders’ equity section of the statement of financial position of Del Corporation: Ordinary shares, P2 par value – Balance as of December 31, 2010; P1,000,000. Ordinary shares, P2 par value – Balance as of December 31, 2011; P1,020,000. Share premium - Balance as of December 31, 2010; P500,000. Share premium - Balance as of December 31, 2011; P580,000. Retained earnings - Balance as of December 31, 2010; P1,000,000. Retained earnings - Balance as of December 31, 2011; P1,046,000. During 2011, the corporation declared and paid cash dividends of P150,000 and also declared and issued a share dividend. There were no other changes in shares issued and outstanding during 2011. What is the net income for 2011. Show solution
The following data are extracted from the shareholders’ equity section of the statement of financial position of Del Corporation: Ordinary shares, P2 par value – Balance as of December 31, 2010; P1,000,000. Ordinary shares, P2 par value – Balance as of December 31, 2011; P1,020,000. Share premium - Balance as of December 31, 2010; P500,000. Share premium - Balance as of December 31, 2011; P580,000. Retained earnings - Balance as of December 31, 2010; P1,000,000. Retained earnings - Balance as of December 31, 2011; P1,046,000. During 2011, the corporation declared and paid cash dividends of P150,000 and also declared and issued a share dividend. There were no other changes in shares issued and outstanding during 2011. What is the net income for 2011?
The Mike Corporation’s statement of financial position shows total shareholders’ equity of P3,150,000 as of December 31, 2016. a. What is the book value per share, assuming that the company has only one class of share capital outstanding consisting of 50,000, P10 par ordinary shares?A. P10.00B. P63.00C. P70.20D. P73.00 b. What is the book value per ordinary share assuming that the company has two classes of share capital outstanding consisting of the following: 5,000, P100 par value preference shares with a liquidation value of P120 per share and 50,000, P10 par value ordinary shares?A. P10.00B. P51.00C. P53.00D. P63.00
The following data is available for the years ended 2020 and 2021 for Bunting Company. 2021 2020 Common shares outstanding 120,000 110,000 (same shares for 2019 as 2020) Preferred shares outstanding 25,000 25,000 Common shares dividends $48,000 $37,400 Preferred shares dividends $12,500 $12,500 Net income $436,850 $310,600 Market price per share 45.5 40.9 a. Calculate the market ratios for 2021 in the table to the right b. Calculate the market ratios for 2020 in the table to the right
Commons, Inc. provides the following information for 2018: Net income $ 38 comma 000$38,000 Market price per share of common stock $ 18.00$18.00/share Dividends paid $ 0.85$0.85/share Common stock outstanding at Jan. 1, 2018 120 comma 000120,000 shares Common stock outstanding at Dec. 31, 2018 170 comma 000170,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. (Round your answer to two decimal places.) A. 4.964.96% B. 3.283.28% C. 4.724.72% D. 1.441.44%
The following data pertain to ABC Corporation for the calendar year 2012:Net Income P 240, 000Dividends paid on ordinary share 120, 000Ordinary share outstanding (unchangedduring the year) 300, 000shares The market price per share of ABC’s ordinary share at December 31, 2012was P12. The price-earnings ratio at December 31, 2012 wasa. 9.6 to 1 c. 15.0 to 1 b. 10.0 to 1 d. 30.0 to 1
(Statement Presentation of Transactions—Equity Accounts) The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: 2020 2019 Preferred shares classified as equity $145,000 $145,000 Common shares: 9,000 shares in 2020, 10,000 shares in 2019 142,000 160,000 Contributed surplus—reacquisition of common shares 3,500 –0– Cash dividends—preferred 6,250 6,250 Stock dividends—common 14,000 –0– Retained earnings (balance after closing entries) 300,000 240,000 At December 31, 2020, the following information is available: Mandrich Inc. repurchased 2,000 common shares during 2020. The repurchased shares had a weighted average cost of $32,000.During 2020, 1,000 common shares were issued as a stock dividend.Mandrich…
The following data are extracted from the shareholders' equity section of 5 points the statement of financial position of Del Corporation: Ordinary shares, P2 par value - Balance as of December 31, 2010; P1,000,000. Ordinary shares, P2 par value - Balance as of December 31, 2011; P1,020,000. Share premium - Balance as of December 31, 2010: P500.000. Share premium Balance as of December 31, 2011; P580,000. Retained earnings - Balance as of December 31, 2010; P1,000,000. Retained earnings - Balance as of December 31, 2011; P1,046,000. During 2011, the corporation declared and paid cash dividends of P150,000 and also declared and issued a share dividend. There were no other changes in shares issued and outstanding during 2011. What is the net income for 2011.
SW Company provides the Equity & Liability information below for analysis. SW Company had net income of $365, 700 in 2023 and $335,800 in 2022. Equity and Liabilities 2023 2022 Share capital-common (137,700 shares issued) $ 1,417,500 $ 1,417,500 Retained earnings (Note 1) 417,700 311, 300 Accrued liabilities 10,300 6,500 Notes payable (current) 82,700 65,500 Accounts payable 59,500 179,000 Total equity and liabilities $1,987,700 $ 1,979,800 Note 1: Cash dividends were paid at the rate of $1 per share in 2022 and $2 per share in 2023. Required: 1. Calculate the return on common share equity for 2022 and 2023. (Assume total equity was $1,454,000 at December 31, 2021.) (Round your answers to 1 decimal place.) 2. Calculate the book value per shares for 2022 and 2023. (Round your answers to 2 decimal places.)

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