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Question: ADVANCED ACCOUNTING Topic: Business Combination Con…
ADVANCED ACCOUNTING
Topic: Business Combination Consolidation
Looking for solutions why it become E, B, E and B
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Superman Batman Current Assets 1,200,000 500,000 Non Current Assets 2,000,000
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For the next four questions Superman acquired the net assets of Batman by issuing 10,000 ordinary shares with par value of P10 and
bonds payable with face amount of P500,000. The bonds are classi ed as nancial liability at amortized cost. At the time of acquisition,
the ordinary shares are publicly quoted at P20 per share. On the other hand, the bonds payable classi ed as nancial liability at amortized
cost, are trading at 115. Superman paid P10,000 share issuance cost and P20,000 bond issuance costs. Superman also paid P40,000
acquisition related costs and P30,000 indirect costs of business combination. Before the acquisition, Superman and Batman reported the
following data: Superman Batman Current assets 1,000,000 500.000 Noncurrent assets 2,000,000 1,000,000 Current liabilities 200,000
400,000 Noncurrent liabilities 300,000 500.000 Ordinary shares 500.000 200.000 Share premium 1.200.000 300,000 Retained earnings
800,000 100,000
At the time of acquisition, the current assets of Super have nir value of P1.200.000 while the noncurrent asset of Batman have fair value
of P1,300,00. On the same date, the current liabilities of Batman have fair value of P600,000 while the nghcurrent liabilities of Superman
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have fair value of P500,000 29. What is the goodwill haspurchase
gain on bargain been solved!
arising from business combination? a. 50,000 goodwill
b. 150,000 gain on bargain purchase c. 120.000 goodwill d. 75,000 gain on bargain purchase e. None of the above B 30, what total
amount should be expensed as incurred at the time of business combination a: 20,000 b. 70.000 90,000 d. 50.000 100.000 31. What is
See thea. answer
Superman's amount of total assets after the business combination? 4,520,000 b. 4.810,000 c. 4,750,000 d. 4,700,000 e. 4.775.000 32.
What is Superman's amount of total liabilities after the business combination a. 1.900,000 b. 2,155,000 c. 2,375,000 d. 2.175,000 2,355,000
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