1 Pool Company

2 December 31, 2020

3 120,000 shares at 10 par
P2,550,000

4 CA 1,100,000 1,100,000.00
PPE 2,200,00 2,200,000.00
Liab 300,0000 - 300,000.00

3,000,000.00

5 2,550,000.00
3,000,000.00
1 - 450,000.00

2 APIC

Legal Fees 25,000.00

Gen Admin Costs 20,000.00
SEC 12,000.00
Issue 3,000.00
60,000.00

APIC 15,000.00
Cash

PARENT BOOKS
Entry Current Assets 1,100,000.00
PPE 2,200,000.00
Expense 45,000.00
Liabilities
OS
APIC
Cash
Gain on Bargain Purchase

3,345,000.00
Gain on Bargain Purchase

45,000.00

15,000.00

15000

300,000.00
1,200,000.00 FV 120,000 shares 2,550,000.00
1,335,000.00 1,350,000.00
60,000.00 15,000.00
450,000.00 1,335,000.00

3,345,000.00 -
 CONSOLIDATED FINANCIAL STATEMENTS

Total Assets Total Liab

1 BV of Assets of the Parent
2 FV of Assets of Subs
3 Goodwill if any
Less the purchase price paid
4 by the parent
5 Less the expenses paid
BV of Liab of the Parent
FV of Liab of Subs
Contingent consideration
Add: Debt instruments issued
Add: unpaid acquisition cost

Red Corporation
Book Value Fair Value
Cash and Receivables 300,000 300,000
Inventory 400,000 600,000
Buildings and Equip 800,000 870,000
Accum Depr. -200,000
TOTAL ASSETS 1,300,000 1,770,000
Accounts Payable 100,000
Bonds Payable 400,000 100,000
Ordinary Share 400,000
P10 par value 300,000
P5 par value

Share Premium 100,000

Accumulated Profits 400,000

Total Liabilities and
1,300,000
Equities

80 20
TOTAL PARENT NCI
Total FV Purchase Price Measure NCI
Net Assets @ FV Proportionate Share Proportionate Share

1 750,000.00 600,000.00 150,000.00

420,000.00 336,000.00 84,000.00
330,000.00 264,000.00 66,000.00
Total Parent NCI

80 20
2 684,000.00 600,000.00 84,000.00
420,000.00 336,000.00 84,000.00
264,000.00 264,000.00 -
NCI
 Total Equity
BV of the Net Asset
NCI
GBP if any

Add equity sec issued

Less acquisition cost

125,000

Blue Corporation
Book Value Fair Value
50,000 50,000
100,000 245,000
300,000 250,000 80 percent parent
-150,000 20% NCI
300,000 545,000
40,000
40,000 85,000 420,000 84,000.00
60,000

100,000

20,000

80,000

3,000,000

Implied Goodwill
pfrS smes
Red and Blue Coporation 600,000.00
Combined SFP
January 1, 2011 420,000.00
180,000.00
Cash and receivables 350,000
Inventory 645,000
Building and Equipment 1,050,000
Accumulated Depreciation -200,000
Goodwill 180,000.00
TOTAL ASSETS 2,025,000

Accounts Payable 140,000

Bonds Payable 485,000 OS 15,000.00
Ordinary Share (P10 par
450,000.00
value) SP 15,000.00
Share premium 550,000.00

Accumulated Profits 400,000

Total Liab and SE 2,025,000

Goodwill

FV 40.00
PAR
10.00 150,000.00

30.00 450,000.00 APIC