P Company acquired the net assets of S Company by issuing 150,000 shares of its P10 par value ordinary share capital on July 1, 2021. The market value of the shares was P12. P also paid direct costs...


P Company acquired the net assets of S Company by issuing 150,000 shares of its P10 par<br>value ordinary share capital on July 1, 2021. The market value of the shares was P12. P also<br>paid direct costs of P100,000 which includes P15,000 cost of issuing and registering new<br>shares. The financial statements of P and S were (see image below).<br>The fair value and book value of S Company's identifiable assets and liabilities were the same<br>except Equipment which was undervalued by P250.000 and lInventory which was overvalued by<br>P100,000. Assuming that P Company is an SME.<br>How much is the goodwill/gain on bargain purchase?

Extracted text: P Company acquired the net assets of S Company by issuing 150,000 shares of its P10 par value ordinary share capital on July 1, 2021. The market value of the shares was P12. P also paid direct costs of P100,000 which includes P15,000 cost of issuing and registering new shares. The financial statements of P and S were (see image below). The fair value and book value of S Company's identifiable assets and liabilities were the same except Equipment which was undervalued by P250.000 and lInventory which was overvalued by P100,000. Assuming that P Company is an SME. How much is the goodwill/gain on bargain purchase? " P S Cash Inventory Equipment Other Assets 150,000 320,000 4,350,000 500,000 5,320,000 120,000 400,000 1,750,000 500,000 2,770,000 Total Accounts Payable Notes Payable Share Capital, P10 par 1,000,000 1,300,000 2,000,000 1,000,000 20,000 5,320,000 300,000 660,000 500,000 100,000 1,210,000 2,770,000 Share Premium Retained Earnings Total

Jun 08, 2022
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