Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If ABC Co purchases the net assets of XYZ Co by issuing 50,000 shares of their P20 par value ordinary shares with a fair value
If ABC Co purchases the net assets of XYZ Co by issuing 50,000 shares of their P20 par value ordinary shares with a fair value of P30 per share and paying professional fees to arrange the acquisition amounting to P20,000; legal fees of P30,000; costs for maintaining the acquisition of the department, P30,000; cost of registering the securities, P25,000 and cost of issuing the securities, P15,000. Parent also determines contingent consideration to be paid in the future amounting to P100,000 on the date of acquisition but could go as high as P150,000. From the data, determine the total amount of share premium to be reported by ABC Co after the acquisition.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To determine the total amount of share premium to be reported by ABC Co after the acquisition we fir...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started