Q Business Combi

Question 8 2 pts On January 1, 20x1, Magnum Corp. acquired all the identifiable assets and assumed the liabilities of Colt Corp. The book values and fair values of Magnum and Colt Corp, prior to business combination are as follows Magnum Colt Book value Fair. Value Book Value Fair Value Cash 6,000,000 6,000,000 1,000,000 1,000,000 Accounts Receivable 500,000 470,000 120,000 105,000 Allowance for doubtful account (40.000) (20,000) Inventories 1,000,000 950,000 500,000 510,000 Land 3,000,000 3,200,000 1,200,000 1,300,000 Building 2.000.000 1.600.000 1,000,000 850.000 Accumulated Depreciation (500,000) (200,000) Total 11.960,000 12.220,000 3,600,000 Accounts Payable 3,000,000 2,500,000 1,000,000 1,000,000 Notes Payable 500,000 480,000 600.000 550,000 Ordinary share - P100 par 4,000,000 1,000,000 Share premium 1.200,000 200,000 Retained earnings 3.260,000 800,000 Total Liabilities and SHE 11.960,000 3,600,000 Assume Magnum Corp.paid cash of P2,500,000 to acquire the identifiable net assets of Colt . Also it paid finder's fee of P10,000: general and allocated cost of P5,000, and legal fee of P20,000 What is the total amount of shareholders equity after business combination? 14,065,000