Question

On January 1, 2017 Subic Company issued shares of its P5 par value stock to acquire of Financial Position for Subic Company and Statement of Financial Position for the all the shares of Clark Inc. which was liquidated immediately thereafter. The Statement Problem 13-10 combined company under the purchase method are presented below: Combined Company Subic Company Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Goodwill Total Assets P 70,000 130,000 100,000 100,000 400,000 ( 150,000) P100,000 180,000 220,000 175,000 550,000 ( 150,000) 55,000 P1,130,000 P650,000 Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities and Equities p 40,000 100,000 200,000 60,000 250,000 P650,000 P60,000 160,000 240,000 420,000 250,000 P1,130,000

Answer 1

far value of net asteb held by clark Ine. before incorporation? immediately Goodelu caib nccocent Receivalue Inventory hand Beuildings & equipment Total asset P55000 PIGO000 PI&ODOD P 220000 P175000 P 4600DD PIQ30000 current viabilities: Accounts payalue P60000 PIGODOV Bonds payane P22000D Total cierrent walilities Fair value of net assets of clark Inca $1130000 $ 220000 $910000 computation of neem ber shares sesuced by subic company to complete combination. carb P4000D -Accocento Receivalice P130000 Inventory Ρισοσοο land Bufidings @s equipment Ρισοσοο P250000 Accocent payalue (Ρφ συσυ) ) Bonds ayalue cPlodov) P510000 No. of shares inued by cutic company- P510000 PE - 102000 shares 1/1

company A curleet price perchare od Settore Iate of combination - Mar Toral value of burners shares outstanding valle of 영 business - Total asets of the company .P650000 P450000 Market price per share 102000 shares P6.37 Market price pershare of cubic company at the date og combination is P6.31 shares issued by sutric company to Value acquire Clark and is 240000 shares of Clark Inc * P5 = P1200000 3/3 a =