Gacad, Mallet S.

BSMA-3B
Assignment/Seatwork-BusCom (3135)
Merger & Consolidation

24 Common Shares (50,000*20) 1,000,000.00

Contingent Consideration ( 130,000*50% * .961538) 62,500.00
Contingent Consideration Transferred 1,062,500.00

25 Consideration 50,000.00
(20 MV - 5 Par) 15.00
Total 750,000.00
Less: Stock Issue 9,000.00
Add: Additional in Capital 400,000.00
Additional Paid in Capital after Combination 1,141,000.00

26 Revenues 1,200,000.00
Less: Net Income 325,000.00
Expenses 875,000.00

27 Revenue (Loss) 1,200,000.00

Less:Expenses 875,000.00
Net Income (Loss) 325,000.00

28 Retained Earnings Dec. 31, 2014 1,185,000.00

29 Contigent Performance Obligation 75,000.00

Legal & Accounting fess 15,000.00
Goodwill 90,000.00

30 Contigent Performance Obligation 80,000.00

Legal & Accounting fess 15,000.00
Goodwill 95,000.00

31 NBIT 20,000,000.00
Multiply by: 5.00
Total 100,000,000.00
Multiply by: PV factor 1.574
Earnout Value 15,751,936.00

32 Equipment 640,000.00
33 Goodwill 800,000.00
Building 800,000.00

34 Consideration (100000*50%) 50,000.00

PV Factor (1.10 ^-1) 0.91
PV of the cash outflow 45,454.55

35 Consideration Transferred 200,000,000.00

Add: Additional Consideration Liability 10,000,000.00
Less: Net Asset FV 116,000,000.00
Goodwill 94,000,000.00

36 Cash is reduced by 600

A loss of 600 is recorded

37 The fair value of the expected contingent payment increases goodwill

at the acquisition date

38 Current Assets 1,500,000.00

Plant & Equipment 35,000,000.00
Patents 2,000,000.00
Completed Technology 10,000,000.00
Licensing Aggreemets 4,000,000.00
Less: Liabilities 30,000,000.00
Total 22,500,000.00
Less: Consideration 100,000,000.00
Goodwills 77,500,000.00

39 Current Assets 1,500,000.00

Plant & Equipment 35,000,000.00
Patents 2,000,000.00
Completed Technology 10,000,000.00
Licensing Aggreemets 4,000,000.00
Less: Liabilities 30,000,000.00
Total 22,500,000.00
Less: Consideration 10,000,000.00
Bargaining Purchase Gain on Acquisition 12,500,000.00

40 Goodwill 2,000,000.00
Patents 2,000,000.00

41 A debt to bargain purchase gain on acquisition of 2,000,000

D

C a

A a
A a

A a

C c

D d

B b

D correct answer 76,500,000

add all market value