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    M 204

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    Rafael Capunpon Vallejos
    The document provides financial information for three separate business combinations: 1) JROME acquired MAE Company for P495,000 cash. MAE had assets of P660,000 and liabilities of P70,000 at acquisition. The resulting goodwill was P5,000. 2) MER Company merged with GER Company, exchanging 3 MER shares for each GER share. The total consideration was P900,000. After the merger, the total assets on MER's statement of financial position were P1,560,000. 3) COLLOQUY acquired CONVERSATION, issuing shares. COLLOQUY's identifiable assets were P9,600,000 and liabilities P

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    M 204

    Uploaded by

    Rafael Capunpon Vallejos
    60 views2 pages
    The document provides financial information for three separate business combinations: 1) JROME acquired MAE Company for P495,000 cash. MAE had assets of P660,000 and liabilities of P70,000 at acquisition. The resulting goodwill was P5,000. 2) MER Company merged with GER Company, exchanging 3 MER shares for each GER share. The total consideration was P900,000. After the merger, the total assets on MER's statement of financial position were P1,560,000. 3) COLLOQUY acquired CONVERSATION, issuing shares. COLLOQUY's identifiable assets were P9,600,000 and liabilities P

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    The document provides financial information for three separate business combinations: 1) JROME acquired MAE Company for P495,000 cash. MAE had assets of P660,000 and liabilities of P70,000 at acquisition. The resulting goodwill was P5,000. 2) MER Company merged with GER Company, exchanging 3 MER shares for each GER share. The total consideration was P900,000. After the merger, the total assets on MER's statement of financial position were P1,560,000. 3) COLLOQUY acquired CONVERSATION, issuing shares. COLLOQUY's identifiable assets were P9,600,000 and liabilities P

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    60 views2 pages

    M 204

    Uploaded by

    Rafael Capunpon Vallejos
    The document provides financial information for three separate business combinations: 1) JROME acquired MAE Company for P495,000 cash. MAE had assets of P660,000 and liabilities of P70,000 at acquisition. The resulting goodwill was P5,000. 2) MER Company merged with GER Company, exchanging 3 MER shares for each GER share. The total consideration was P900,000. After the merger, the total assets on MER's statement of financial position were P1,560,000. 3) COLLOQUY acquired CONVERSATION, issuing shares. COLLOQUY's identifiable assets were P9,600,000 and liabilities P

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    On December 31, 2022, JROME Incorporated paid P495,000 cash for all the outstanding stock of

    MAE Company. MAE’s assets and liabilities on that day were as follows (all amounts are in
    Philippine Peso) : Cash 60,000 Inventory 150,000 Property and equipment 450,000 Accumulated
    Depreciation 100,000 Liabilities 70,000 On the day of business combination the fair value of the
    inventory was P125,000 and the fair value of the property and equipment (net) was P385,000. The
    goodwill (gain from acquisition) resulting from this acquisition amounts to:

    Group of answer choices

    (P40,000)

    P40,000

    P5,000

    (P5,000)

    On February 28, 2023, MER Company merged with GER Company. MER exchanged three of its
    ordinary shares for each share of GER’s ordinary shares. The fair value of MER’s ordinary shares
    was P10/share. Total consideration transferred by MER company amounted to P900,000. Acquisition
    cost paid by MER related to the business combination amounted P30,000. The statement of financial
    position accounts prior to the merger are presented below (all amounts are in Philippine Peso): GER
    Co. MER Co. Book Value FMV Current Assets 120,000 80,000 110,000 Plant Assets 450,000
    360,000 820,000 Goodwill 90,000 20,000 Current Liabilities 105,000 50,000 50,000 Notes Payable
    120,000 Bonds Payable 300,000 280,000 Ordinary Shares (P1 par) 150,000 (P5 par) 225,000
    Retained Earnings (Deficit) 210,000 (40,000) How much is the total assets in the statement of
    financial position of MER Company after the business combination?

    Group of answer choices

    P1,590,000

    P1,890,000

    P1,560,000

    P1,860,000

    On January 1, 20x1, COLLOQUY Co. acquired all of the identifiable assets and assumed all of the
    liabilities of CONVERSATION, Inc. by issuing its own ordinary shares. Information at acquisition
    date is shown below: COLLOQUY Co. CONVERSATION, Co. Combined entity (carrying amounts)
    (fair values) Identifiable assets 9,600,000 6,400,000 16,000,000 Goodwill - - ? Total assets 9,600,000
    6,400,000 ? Liabilities 2,800,000 3,600,000 6,400,000 Share capital 2,400,000 1,200,000 2,800,000

    1
    Share premium 1,200,000 1,000,000 4,800,000 Retained earnings 3,200,000 600,000 ? Total
    liabilities & equity 9,600,000 6,400,000 ? Additional information: · COLLOQUY’s share capital
    consists of 60,000 ordinary shares with par value of P40 per share. · CONVERSATION’s share
    capital consists of 3,000 ordinary shares with par value of P400 per share. How many shares were
    issued in the business combination?

    Group of answer choices

    10,000

    40,000

    12,000

    36,000

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