Professional Documents
Culture Documents
110. Using the same information in No. 109 except that bonus method is to be used with respect to
undervalued asset and goodwill. Compute the amount of goodwill recognized in the book:
Answer: A. Zero
111. Using the same information in No. 82 except that bonus method is to be used with respect to
undervalued assets and goodwill. Compute the capital balances of A and X, respectively:
Incorporation of Partnership
Roy and G4 are partners sharing profits and losses in the ratio of 1:2 respectively. On July 1, 2015 they
decided to form the R&G Corporation by transferring the assets and the liabilities from the partnership
to the Corporation in exchange of its shares. The following is the post-closing trial balance of the
partnership:
Debit Credit
It was agreed that adjustment to made to the following assets to be transferred to the corporation:
The R&G Corporation to issue P100 per preferenced shares and P10 per ordinary share. Roy and G4
agreed to receive for their equity in the partnership 720 ordinary share each, plus even multiples at 10
shares for their remaining interest. The total number of shares at preference and ordinary share issued
by the Corporation in exchange of the assets and liabilities of the partnership are:
Answer: B
Preference Share Ordinary Share