P Company S Company

Book Value Fair Value Book Value Fair Value

Cash 4,600,000 4,600,000 300,000 300,000
Accounts Receivable 1,000,000 1,000,000 980,000 980,000
Inventory 1,500,000 1,300,000 710,000 600,000
Building, net 1,800,000 1,460,000 1,520,000 1,064,000
Goodwill 90,000 80,000
Total 8,900,000 8,360,000 3,600,000 3,024,000

Liabilities 1,000,000 1,000,000 570,000 570,000

share capital 1,600,000 600,000
share premium 900,000 960,000
retained earnings 5,400,000 1,470,000
total 8,900,000 3,600,000

PROBLEM 1
1. Total Assets P Company S Company 2. Total shareholders equity
Cash ₱ - ₱850,000.00 shares
Total Assets (BS) ₱ 8,360,000.00 ### expense
₱ 8,360,000.00 ###
Total shareholders equity
Total Assets ₱ 10,534,000.00

PROBLEM 2
Book Value Fair Value
current assets ₱ 368,000.00 ₱404,500.00 aug 1.
plant assets ₱ 592,500.00 ₱690,000.00
patent (net) ₱ 58,500.00 ₱ 48,000.00
total ₱ 1,019,000.00 ### expenses

current liabilities ₱ 107,500.00 ₱107,500.00

long-term debt ₱ 280,000.00 ₱297,500.00
share capital, 20 par ₱ 210,000.00 ₱353,100.00
retained earnings ₱ 421,500.00 ₱279,100.00
total ₱ 1,019,000.00 ###

1. net increase on stockholders equity shares = ₱ 10,700.00

per share 33
₱ 353,100.00
expense ₱ 74,000.00
Total 279,100

PROBLEM 3
cash ₱ 510,000.00 identifiable assets
non-controlling interest 100%-75%= 25% control premium
identifiable assets ₱ 1,280,000.00
liabilities ₱ 716,000.00 less: liabilities
control premium ₱ 30,000.00 fair value of identifiable net assets acquired

fair value of identifiable net assets acquired

multiply by NCI
NCI's proportionate share in identifiable net assets

Consideration transferred
NCI in the acquiree
total
less: FVINAA
Gain on Acquisition
 25,600
23,000
11,800
60,400

P Company S Company
₱ 3,110,000.00
60,400

₱ 3,049,600.00

10,7000 shares with p33 per share

145,000 cash

47,500
26,500
74,000

₱ 10,700.00
33
₱ 353,100.00

₱ 145,000.00
₱ 353,100.00
₱ 498,100.00

₱ 1,280,000.00
₱ 30,000.00
₱ 1,250,000.00
₱ 716,000.00
₱ 534,000.00

₱ 534,000.00
0.25
₱ 133,500.00

₱ 145,000.00
₱ 133,500.00
₱ 278,500.00
₱ 534,000.00
-₱ 255,500.00