14-22: a

Capital stock issued at par (P500,000 + P300,000) P 800,000

APIC (50,000 + 300,000) – 15,000 335,000

Retained earnings (P100,000 – 25,000) 75,000

Stockholders equity after acquisition 1,210,000

14-23: a

B Company C Company

Consideration given P4,400,000 P638,000

Less: fair value of net assets acquired 4,150,000 370,000

Goodwill P 250,000 P268,000

Total goodwill recorded (250,000 + 268,000) 518,000

14-24: a

A Company 5,250,000

B Company 6,800,000

C Company 900,000

Cash paid for acquisition costs (P20,000 + P10,000) (30,000)

Goodwill (see 14-23) 518,000

Total assets after combination 13,438,000

14-25: a

Stockholders equity before acquisition – A Company P1,300,000

Capital stock issued at par (229,000 shares x P10) 2,290,000

Additional paid-in-capital [(229,000 x 12) – 10,000] 2,738,000

Other acquisition cost (reduction from retained earnings) (20,000)

 Stockholders equity after acquisition 6,308,000

14-26: 1. a

Equipment: P180,000/5 yrs. = P36,000

Building: P550,000/20 yrs. = 27,500

Total depreciation P63,500

2. b

Price paid P900,000

Less fair value of net assets acquired:

Current assets P100,000

Land 50,000

Equipment 180,000

Building 550,000

Current liabilities (150,000) 730,000

Goodwill P170,000

14-27: b

Price paid P32 M

Final fair value of net assets 28 M

Goodwill P 4 M