Required with solution

34 Chapter 13 MULTIPLE CHOICES-COMPUTATIONAL 13-1: Man Inc. purchased all of the net assets of Woman Company on January 2, 2017 by issuing 8.000 shares of its P10 par common stock. At the time, the stock was selling for P30 per share. Direct costs associated with consummating the combination totaled P4,000. Under IFRS 3, what total amount should the net assets acquired be recorded by Man Inc. assuming that contingent consideration of P5,000 is determined? b. C. d. P249,000 P271,000 P244,000 P245,000 13-2: The net assets of Acquired Company have a book value of P150,000 and a fair value of P180,000. Acquiring Company paid P250,000 cash for all the net assets of Acquired Company. Acquiring Company also paid P50,000 to an investment house as finder's fee. At what amount should goodwill be recorded on Acquiring Company's books? P100,000 b. P750,000 P120,000 d. P 70,000 a. c. 13-3: On June 30, 2017, White Corporation issued 100,000 shares of its P20 par value common stock for the net assets of Black Company in a business combination accounted for by the acquisition method. The market value of White's common stock on June 30 was P36 per share. White paid a fee of P100,000 to the broker who arranged this acquisition. Costs of SEC registration and issuance of the equity securities amounted to P50,000. Contingent consideration determined to be paid to Black Company after acquisition amounts to P120,000. What amount should White capitalize as the cost of acquiring Black's net assets. P3,620,000 b. P3,650,000 P3,720,000 d. P3,750,000 34 Chapter 13 MULTIPLE CHOICES-COMPUTATIONAL 13-1: Man Inc. purchased all of the net assets of Woman Company on January 2, 2017 by issuing 8.000 shares of its P10 par common stock. At the time, the stock was selling for P30 per share. Direct costs associated with consummating the combination totaled P4,000. Under IFRS 3, what total amount should the net assets acquired be recorded by Man Inc. assuming that contingent consideration of P5,000 is determined? b. C. d. P249,000 P271,000 P244,000 P245,000 13-2: The net assets of Acquired Company have a book value of P150,000 and a fair value of P180,000. Acquiring Company paid P250,000 cash for all the net assets of Acquired Company. Acquiring Company also paid P50,000 to an investment house as finder's fee. At what amount should goodwill be recorded on Acquiring Company's books? P100,000 b. P750,000 P120,000 d. P 70,000 a. c. 13-3: On June 30, 2017, White Corporation issued 100,000 shares of its P20 par value common stock for the net assets of Black Company in a business combination accounted for by the acquisition method. The market value of White's common stock on June 30 was P36 per share. White paid a fee of P100,000 to the broker who arranged this acquisition. Costs of SEC registration and issuance of the equity securities amounted to P50,000. Contingent consideration determined to be paid to Black Company after acquisition amounts to P120,000. What amount should White capitalize as the cost of acquiring Black's net assets. P3,620,000 b. P3,650,000 P3,720,000 d. P3,750,000