50000000 Consideration transferred 750000000 Less MV of Assets and Liabilities

50000000 consideration transferred 750000000 less mv

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_50,000,000 Consideration transferred 750,000,000 Less: MV of Assets and Liabilities Acquired: Cash and receivables 200,000,000 Inventories 400,000,000 Property, plant & equipment 5,500,000,000 Customer contracts 25,000,000 In-process R&D 300,000,000 Current liabilities ( 400,000,000 ) Long-term debt (7,300,000,000 ) Warranty liability ( 10,000,000 ) (1,285,000,000 ) Positive excess: Goodwill 2,035,000,000
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Acquisition expenses Acquisition/merger expenses 150 Cash 150 Costs to Issue and Register Stocks Share Issue Costs 100 Cash 100 2. (in millions) Goodwill 1,500 Property, plant & equipment 1,500 Problem III 1. Current assets 1,500,000 Investments 500,000 Land 6,000,000 Buildings 16,000,00 0 Equipment 2,000,000 Identifiable intangibles 5,000,000 Goodwill 22,500,00 0 Current liabilities 1,500,000 Long-term liabilities 12,000,00 0 Common stock 4,000,000 Additional paid-in capital 36,000,00 0 Cash 1,100,000 Consideration transferred: Shares (400,000 x P100) 40,000,000
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Less: MV of Assets and Liabilities Acquired: Current assets 1,500,000 Investments 500,000 Land 6,000,000 Buildings 16,000,000 Equipment 2,000,000 Identifiable intangibles 5,000,000 Current liabilities ( 1,500,00 0) Long-term liabilities (12, 000,000) (17,500,000 ) Positive excess: Goodwill 22,500,000 Costs to Issue and Register Stocks Share Issue Costs/APIC 1,100 Cash 1,100 2. Current assets 1,500,000 Investments 500,000 Land 6,000,000 Buildings 16,000,00 0 Equipment 2,000,000 Identifiable intangibles 5,000,000 Current liabilities 1,500,000 Long-term liabilities 12,000,00 0 Common stock 1,000,000 Additional paid-in capital 9,000,000 Gain on acquisition 7,500,000 Consideration transferred:
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Shares (100,000 x P100) 10,000,000 Less: MV of Assets and Liabilities Acquired: Current assets 1,500,000 Investments 500,000 Land 6,000,000 Buildings 16,000,000 Equipment 2,000,000 Identifiable intangibles 5,000,000 Current liabilities ( 1,500,00 0) Long-term liabilities (12, 000,000) (17,500,000 ) Negative excess: Gain on acquisition ( 7,500,000 ) Costs to Issue and Register Stocks Share Issue Costs/APIC 800 Cash 800 3. Current assets 1,500,00 0 Investments 500,000 Land 6,000,00 0 Buildings 16,000,0 00 Equipment 2,000,00 0 Identifiable intangibles 5,000,00 0 Goodwill 500,000 Current liabilities 1,500,00 0
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Long-term liabilities 12,000,0 00 Estimated liability for Contigent Cons. 8,000,00 0 Common stock 1,000,00 0 Additional paid-in capital 9,000,00 0 Consideration transferred: Shares (100,000 x P100) 10,000,000 Estimated liability for Contigent Cons. _8,000,000 Consideration transferred 18,000,000 Less: MV of Assets and Liabilities Acquired: Current assets 1,500,000 Investments 500,000 Land 6,000,000 Buildings 16,000,000 Equipment 2,000,000 Identifiable intangibles 5,000,000 Current liabilities ( 1,500,00 0) Long-term liabilities (12, 000,000) (17,500,000 ) Positive excess: Goodwill 500,000 Costs to Issue and Register Stocks Share Issue Costs/APIC 800 Cash 800 4. (a)
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Estimated liability for Contigent Cons. 3,000,00 0 Goodwill 500,000 Gain on acquisition 2,500,00 0 (b) Estimated liability for Contigent Cons. 3,000,00 0 Gain on reduction in liability 3,000,00 0 Problem IV 1. January 1, 20x4 Accounts Receivable (net) 65,000 Inventory 99,000 Land 162,000 Buildings 450,000 Equipment 288,000 Goodwill 54,000 Accounts Payable 83,00 0 Note Payable 180,0 00 Cash 720,0 00 Estimated Liability for Contingent Consideration 135,0 00 Consideration transferred (P720,000 + P135,000) P855,000 Total fair value of net assets acquired (P1,064,000 - P263,000) 801,000 Goodwill P 54,000
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2. January 2, 20x6 Estimated Liability for Contingent Consideration 135,000 Cash 135,00 0 3. January 2, 20x6 Estimated Liability for Contingent Consideration 135,00 0 Gain on Contingent Consideration 135,00 0 Problem V Current Assets 362,000 Long-term Assets (P1,890,000 + P20,000) + (P98,000 + P5,000) 2,013,0 00 Goodwill * 395,000 Liabilities 119,000 Long-term Debt 491,000 Common Stock (144,000 P5) 720,000 PIC - par (144,000 x  P15 - P5)) 1,440,0 00 * (144,000 ´ P15) – [P362,000 + P2,013,000 – (P119,000 + P491,000)] = P395,000 Total shares issued (P700,000 / P5) + P20,000 / P5) 144,000
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