1. Before combination, Calix Corp and Gab Corp had the following equity figures:

Calix issues 30,000 new shares of its common stock valued at P5 per share for all of the outstanding stock of Gab. Assume that Calix acquires Gab, what are the APIC and Retained Earnings, respectively, to be presented in the Consolidated Financial Statements immediately after the business combination?

2 A home office transfer inventory to its branch at a 25% markup above cost during 20x1, which was higher by 10% compared to the mark-up above cost last year. In 20x1, the reciprocal account in the statement of comprehensive income of the branch amounts to P525, 000. At year-end, the home office adjusted its Unrealized Profit account downward to P28, 000. The cost of goods sold of the branch in its books is overstated by P122, 000.

How much is the ending inventory per branch books at the end of 20x1?

3 The net assets of B company have a book value of Php 300, 000 and a fair value of Php 420, 000. Among the undervalued assets are the plant and equipment which have a book value of Php 200, 000 and a fair value of Php 225, 000. A company issues stock with a par value of Php 250, 000 and a market value of Php 600, 000 for the net assets of B Company.

Shortly after the stock issue, B corporation be recorded on A Company's books?

4 The home office ships merchandise to its branch at 20 percent above cost. The branch's books show a beginning inventory of home office merchandise of Php 30, 000 and shipments from home office of Php 180, 000. What is the balance before closing in the Allowance for Overvaluation of Branch Inventory account?

5 Luzon Corporation starts a branch operation in a nearby town. Merchandise costing Php 80, 000 is shipped to this branch along with equipment costing Php 50, 000. During initial year, the home office assigns Php 8, 000 in expenses to the branch. The branch sells 70 percent of the inventory that it received for Php 80, 000 and remits Php 40, 000 in cash to the home office. What is the correct Home Office account balance on the records of the branch? Closing entries has not been made.