ADVANCED ACCOUNTING Topic: Business Combination Consolidation

Looking for solutions why it become E, B, E and B

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 classified as financial 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 classified as financial 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 finir 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 have fair value of P500,000 29. What is the goodwill or gain on bargain purchase 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 Superman's amount of total assets after the business combination? a. 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