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Acquisition Cost Breakdown

The document discusses the acquisition of assets from Bell by Avon. It provides details of the total costs of acquisition for Avon which was P3,720,000. It also lists the fair value of Bell's net assets acquired which was P180,000. Therefore, the resulting goodwill from the acquisition was P3,720,000 - P180,000 = P3,540,000.

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62 views2 pages

Acquisition Cost Breakdown

The document discusses the acquisition of assets from Bell by Avon. It provides details of the total costs of acquisition for Avon which was P3,720,000. It also lists the fair value of Bell's net assets acquired which was P180,000. Therefore, the resulting goodwill from the acquisition was P3,720,000 - P180,000 = P3,540,000.

Uploaded by

Love Freddy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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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 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 Purchase price (100,000 shares x P36)
P3,600,000
Contingent consideration 120,000
Total costs P3,720,000
d

Price

P 288,000
Avon’s assets 2,000,000
Bell’s assets at fair value 600,000
Total assets P2,888,000

14-10: c

Debit to expenses:
Broker’s fee P 50,000
Pre-acquisition audit fee 40,000
General administrative costs 15,000
Legal fees for business combination 32,000
Other acquisition costs 6,000
Total P 143,000

Price paid

Bell’s assets at fair value 600,000


Total assets P2,888,000

Debit to expenses:
Broker’s fee P 50,000
Pre-acquisition audit fee 40,000
General administrative costs 15,000
Legal fees for business combination 32,000
Other acquisition costs 6,000
Total P 143,000

Price paid

Bell’s assets at fair value 600,000


Total assets P2,888,000

14-10: c

Debit to expenses:
Broker’s fee P 50,000
Pre-acquisition audit fee 40,000
General administrative costs 15,000
Legal fees for business combination 32,000
Other acquisition costs 6,000
Total P 800,000
Less: Fair value of net assets acquired
Cash P 160,000
Inventory 380,000
Property, plant and equipment 1,120,00
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
P 143,000

Price paid P 800,000

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