14-2: b

Less: Fair value of net assets acquired

Cash P 160,000
Purchase price P250,000
Less: Fair value of net assets acquired 180,000
14-2: b
Less: Fair value of net assets acquired
Cash P 160,000
Purchase price P250,000
Less: Fair value of net assb000
Contingent consideration 120,000
Total costs P3,720,000
Contingent consideration 5,000
Acquisition cost P245,000

14-3: c
b
Less: Fair value of net assets acquired
Cash P 160,000
Purchase price P250,000
Less: Fair value of net assets acquired 180,000
Goodwill P70,000
Income from acquisition P (500,000)

d14-3: c
b

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
Goodwill P70,000
d
14-2: b
Less: Fair value of net assets acquired
Cash P 160,000
Inventory 380,000
Less: Fair value of net assets acquired 180,000
Goodwill P70,000
Less: Fair value of net assets acquired (P600,000 – P188,000) 412,000

Debit to expenses:
Broker’s fee P 50,000
000
Contingent consideration 120,000
Total costs P3,720,000
Contingent consideration 5,000
Acquisition cost P245,000

14-3: c
b
Less: Fair value of net asse14-2: b
 Less: Fair value of net assets acquired
Cash P 160,000
Purchase price P250,000
Less: Fair value of net assets acquired 180,000
14-2: b
Less: Fair value of net assets acquired
Cash P 160,000
Purchase price P250,000
Less: Fair value of net assb000
Contingent consideration 120,000
Total costs P3,720,000
Contingent consideration 5,000
Acquisition cost P245,000

14-3: c
b
Less: Fair value of net assets acquired
Cash P 160,000
Purchase price P250,000
Less: Fair value of net assets acquired 180,000
Goodwill P70,000
Income from acquisition P (500,000)

d14-3: c
b

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
Goodwill P70,000
d
14-2: b
Less: Fair value of net assets acquired
Cash P 160,000
Inventory 380,000
Less: Fair value of net assets acquired 180,000
Goodwill P70,000
Less: Fair value of net assets acquired (P600,000 – P188,000) 412,000

d14-3: c
P3,600,000
Contingent consideration 120,000

14-2: b
Less: Fair value of net assets acquired
Cash P 160,000
Purchase price P250,000
Less: Fair value of net assets acquired 180,000
14-2: b
Less: Fair value of net assets acquired
 Cash P 160,000
Purchase price P250,000
Less: Fair value of net assets acquired 180,000
Goodwill P70,000
Income from acquisition P (500,000)

d14-3: c
b
Broker’s fee P 50,000
Pre-acquisition audit fee 40,000
General administrative costs Bell’s assets at fair value
600,000

d14-3: c

d14-3: c
P3,600,000
180,000
Goodwill P70,000

Purchase price (100,000 shares x P36) d

Price

14-2: b
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost d

on cost P245,000

P3,720,000
d14-3: c

Purchase price (100,000 shares x P36) P3,600,000

Contingent consideration 120,000
Total costs P3,720,000

Contingent consideration 5,000

Acquisition cost P245,000
Total costs P3,720,0

14-2: b
Less: Fair value of net assets acquired
Cash P 160,000
Inventory 380,000
Less: Fair value of net assets acquired 180,000
Goodwill P70,000
-

P3,720,000
d14-3: c

Purchase price (100,000 shares x P36) P3,600,000

180,000
Goodwill P70,000

Purchase price (100,000 shares x P36) d

Price

14-2: b
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost d

on cost P245,000

P3,720,000
d14-3: c
0
Acquisition cost d

on cost P245,000

P3,720,000
d14-3: c

Purchase price (100,000 shares x P36) P3,600,000

Contingent consideration 120,000
Total costs P3,720,000
Contingent consideration 5,000
Acquisition cost P245,000
Total costs P3,720,0

14-2: b
Less: Fair value of net assets acquired
Cash P 160,000
Inventory 380,000
Less: Fair value of net assets acquired 180,000
Goodwill P70,000
-2:

Total costs P3,720,000

d

Price paid (8,000 shares

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
180,000
Goodwill P70,000

Purchase price (100,000 shares x P36) d

Price

14-2: b
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost d

on cost P245,000
2:

Total costs P3,720,000

Price paid (8,000 shares

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
180,000
Goodwill P70,000

Purchase price (100,000 shares x P36) d

Price

14-2: b
d

Purchase price (100,000 shares x P36) P3,600,000

Contingent consideration Acquisition cost
P245,000

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000
x P30) P240,000
Contingent consideration 5,000
Acquisition cost P245,000

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisiti Goodwill P70,000

Purchase price (100,000 shares x P36)

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

P3,600,000
Contingent consideration 120,000
Total costs P3,720,000
d14-3: c
P3,600,000
Contingent consideration 120,000
Total costs P3,720,000
d14-3: c
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000
Goodwill P70,0 Purchase price (100,000
shares x P36) P3,600,000
Contingent consideration 120,000
Total costs P3,720,000
d

Price

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

d
Purchase price (100,000 shares x P36) P3,600,000
Contingent consideration 120,000
Total costs P3,720,000

0
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

14-3: c

Purchase price (100,000 shares x P36) P3,600,000

Contingent consideration 120,000
Total costs P3,720,000

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000
 Goodwill P70,0 Purchase price (100,000
shares x P36) P3,600,000
Contingent consideration 120,000
Total costs P3,720,000
d

Price

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

d
Purchase price (100,000 shares x P36) P3,600,000
Contingent consideration 120,000
Total costs P3,720,000

0
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

14-3: c

Purchase price (100,000 shares x P36) P3,600,000

Contingent consideration 120,000
Total costs P3,720,000
Purchase price (100,000 shares x P36) P3,600,000
Contingent consideration 120,000
Total costs P3,720,000
d

Price

14-2: b
d

Price paid (8,000 shares x P30) P240,000

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000
 Price paid (8,000 shares x P30) P240,000
Contingent consideration 5,000
Acquisition cost P245,000

14-2: b

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000
Goodwill P70,0
P3,720,000
,720,000
d14-3: c

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

d
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000
Goodwill P70,0
P3,720,000
,720,000
d14-3: c

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

14-3: c

Purchase price (100,000 shares x P36) P3,600,000

Contingent consideration 120,000
 Total costs P3,720,000
d

Price

14-2: b
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

14-3: c

Purchase price (100,000 shares x P36) P3,600,000

Contingent consideration 120,000
Total costs P3,720,000
d

Price

14-2: b
d

d14-3:
Total costs P3,720,000

0
d

14-2: b

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
14-3:
Contingent consideration 120,000
Total costs P3,720,000
14-2: b

Purchase price P250,000

Less: Fair value of net assets acquired P3,600,000
Contingent consideration 120,000
Total costs P3,720,000

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000
d14-3: c
P3,600,000
Contingent consideration 120,000
Total costs P3,720,000
Contingent consideration 5,000
Acquisition cost P245,000

14-2: b

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
14-3: c

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000
d14-3: c

14-3: c
Price paid (8,000 shares x P30) P240,000
Goodwill P70,000
-2: b

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
Goodwill P70,000

14-3: c
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

Price paid (8,000 shares x P30) P240,000

Contingent consideration 5,000
Acquisition cost P245,000

14-2: b

Purchase price P250,000

Less: Fair value of net assets acquired 180,000

Goodwill P70,000

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
Goodwill P70,000
P70,000
otal costs P3,720,000
Less: Fair value of net assets acquired 180,000
Goodwill-2: b

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
Goodwill P70,000

Purchase price P250,000

Less: Fair value of net assets acquired Total costs
P3,720,000
Less: Fair value of net assets acquired 180,000
Goodwill-2: b

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
Goodwill P70,000

Purchase price P250,000

Less: Fair value of net assets acquired a (at Purchase price
P250,000
Less: Fair value of net assets acquired 180,000
Goodwill P70,000

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
Goodwill P70,000
P70,000

Price paid 14-3: c

d
Price paid (8
Capital stock issued (600,000 shares x P10) P 6,000,000

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
Goodwill P70,000

Purchase price P250,000

Less: Fair value of net assets acquired 180,000
Goodwill P70,000
P70,000

Price paid 14-3: c

d
Price paid (8
Capital stock issued (600,000 shares x P10) P 6,000,000
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration
Purchase price (100,000 shares x P36) P3,600,000
Contingent consideration 120,000
Total costs P3,720,000
d

Price

14-2: b
d

Price paid (8,000 shares x P30) P240,000

Contingent consideration
Inventory 380,000
Property, plant and equipment 1,120,000
Liabilities ( 360,000) 1,300,000
Income from acquisition P (500,000)

14.9 a

Price paid P 700,000

Less: Fair value of net assets acquired (P600,000 – P188,000) 412,000
Goodwill P 288,000
Avon’s assets 2,000,000
Bell’s assets at fair value 600,000
Total assets P2,888,000
14.10 a

Price paid P 700,000

Less: Fair value of net assets acquired (P600,000 – P188,000) 412,000
Goodwill P 288,000
Avon’s assets 2,000,000
Bell’s assets at fair value 600,000
Total assets P2,888,000

a (at fair value at date of acquisition)

14-7: d

Abel net income, January to December (P80,000 + P1,320,000) P1,400,000

Cain net income, April to December 400,000
Total net income P1,800,000

14-8: a
fair value at date of acquisition)
14-7: d
a (at
Inventory 380,000
Property, plant and equipment 1,120,000
Liabilities ( 360,000) 1,300,000
Income from acquisition P (500,000)

14.11 a

Price paid P 700,000

Less: Fair value of net assets acquired (P600,000 – P188,000) 412,000
Goodwill P 288,000
Avon’s assets 2,000,000
Bell’s assets at fair value 600,000
Total assets P2,888,000

fair value at date of acquisition)

14-7: d

Abel net income, January to December (P80,000 + P1,320,000) P1,400,000

Cain net income, April to December 400,000
Total net income P1,800,000

14-8: a

Price paid P 800,000

Less: Fair value of net assets acquired
Cash P 160,000
Inventory 380,000
Property, plant and equipment 1,120,000
Liabilities ( 360,000) 1,300,000
Income from acquisition P (500,000)
a (at
Inventory 380,000
Property, plant and equipment 1,120,000
Liabilities ( 360,000) 1,300,000
Income from acquisition P (500,000)

14.12 a

Price paid P 700,000

Less: Fair value of net assets acquired (P600,000 – P188,000) 412,000
Goodwill P 288,000
Avon’s assets 2,000,000
Bell’s assets at fair value 600,000
Total assets P2,888,000

fair value at date of acquisition)

14-7: d
 Abel net income, January to December (P80,000 + P1,320,000) P1,400,000
Cain net income, April to December 400,000
Total net income P1,800,000

14-8: a

Price paid P 800,000

Less: Fair value of net assets acquired
Cash P 160,000
Inventory 380,000
Property, plant and equipment 1,120,000
Liabilities ( 360,000) 1,300,000
Income from acquisition P (500,000)

14.13 a

14.14 a

Abel net income, January to December (P80,000 + P1,320,000) P1,400,000

Cain net income, April to December 400,000
Total net income P1,800,000

14-8: a

Price paid P 800,000

Less: Fair value of net assets acquired
Cash P 160,000
Inventory 380,000
Property, plant and equipment 1,120,000
Liabilities ( 360,000) 1,300,000
Income from acquisition P (500,000)

14.15 a

Price paid P 700,000

Less: Fair value of net assets acquired (P600,000 – P188,000) 412,000
Goodwill P 288,000
Avon’s assets 2,000,000
Bell’s assets at fair value 600,000
Total assets P2,888,000

a (at fair value at date of acquisition)

14-7: d

Abel net income, January to December (P80,000 + P1,320,000) P1,400,000

Cain net income, April to December 400,000
Total net income P1,800,000
14-8: a

Price paid P 800,000

Less: Fair value of net assets acquired
Cash P 160,000

Price paid P 800,000

Less: Fair value of net assets acquired
Cash P 160,000