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4. The statement of financial position of Sisa Company on December 31,2013 is as follows: Assets Cash Accounts receivable Inventories Property & equipment Total
4. The statement of financial position of Sisa Company on December 31,2013 is as follows: Assets Cash Accounts receivable Inventories Property & equipment Total assets Liabilities and stockholders' equity P100,000 Current liabilities P300,000 200,000 Long-term liabilities 500,000 500,000 Capital stock, P1 par value 100,000 900,000 Retained earnings 800,000 P1,700,000 Total liabilities & equity P1,700,000 On December 31,2013, Pluto Corporation purchases all of the outstanding stock of Sisa Company for P1,500,000 cash. On that date, the fair (market) value of Sisa's inventories and property and equipment are P450,000 and P1,000,000 respectively. The fair values of all other assets and liabilities were equal to their book values. As a result of the acquisition of Sisa's capital stock, Pluto should record goodwill of: a. P500,000 b. P550,000 c. P600,000 d. P-0-
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