- On December 31 2022 The Following Information Were Taken From The Trial Balances Of Abc Company And Xyz Company Abc C 1 (34.74 KiB) Viewed 37 times
On December 31, 2022, the following information were taken from the trial balances of ABC Company and XYZ Company: ABC Company XYZ Company Cash P1,200,000 P200,000 Trade and other receivables 300,000 Inventories 1,300,000 Noncurrent assets 1,600,000 Current liabilities 300,000 Noncurrent abilities 600,000 Ordinary share capital 1,100,000 Share premium 200,000 2,200,000 Retained camings 1,200,000 On January 1, 2023, ABC Company issues 50,000 shares of its P20 par value shares to acquire 70% of the outstanding shares of XYZ. The fair value of the shares of ABC as of January 1 was P29. Contingent consideration that is determined based on the best estimate is P100,000. It was determined that ABC Company had a noncurrent asset that was undervalued by P25,000. The fair value of the non-controlling interest is P700,000. ABC Company also incurred the following fees Broker's fees (paid) P190,000 Pre-acquisition audit fee (unpaid) 210,000 Legal fees (unpaid) 205,000 SEC registration of stocks issued (paid) 170,000 Printing costs of stock certificate (paid) 165,000 How much is the consolidated assets immediately after business combination? 300,000 1,000,000 1,300,000 200,000 400,000 1,000,000