Straight Problem 1: Consideration Transferred and Goodwill Computation Balance sheet information for Amor Corporation atJanuary 1, 2015 is summarized as follows: P 1,200,000 800,000 720,000 Current...

s.p.1-1

Extracted text: Straight Problem 1: Consideration Transferred and Goodwill Computation Balance sheet information for Amor Corporation atJanuary 1, 2015 is summarized as follows: P 1,200,000 800,000 720,000 Current assets P920,000 Liabilities Capital stock P10 par Retained earnings Plant asset 1,800,000 Amor s assets and liabilities are fairly valued except for plant assets that are undervalued by P200.000. On January 2, 2015 EduardoCorporation issues 80,000 shares of its P10 par value ordinary shares for all of Amor's net assets and Amor is dissolved. Market Quotations for the two stocks on this date are: Eduardo ordinary: P28 Amor ordinary: P19 Edwardo pays the following fees and costs in connection with the combination: Finder s fee, P10,000 (Direct Cost) Costs of registering and issuing stock, P5,000 Legal and accounting fees, P6,000 (Indirect Cost) Required: 1. Calculate the amount of consideration transferred.