If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: compute for the consolidated total assets at the date of acquisition
If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: compute for the consolidated total assets at the date of acquisition
Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter8: Subprime Lending Fiasco-ethics Issues
Section: Chapter Questions
Problem 3.7EC
Related questions
Question
If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the
compute for the consolidated total assets at the date of acquisition
![PROMDI COMPANY
Property of and for the exclusive use of SLU. Repraduction, storing in a retrieval system, distributing, uploading or posting online, or transmiting in any form or by any
means, electronic, mechanical, photocopying, recording, or othenwise of any part of this document, without the prior written permission of SLU, is stricity prohibited.
2
Fair Value
體
Book Value
Fair Value
Book Value
P1,450,000 P1,440,000
900,000
600,000
1,255,000
Cash
P1,500,000 P1,500,000 Accounts Payable
750,000
355,000
1,600,000
Accounts Receivable
920,000
Inventory
Fixed Assets (Net)
740,000 Mortgage Payable
340,000 Ordinary Shares
1,520,000 Retained Earnings
PROMDI
CARDO
SYANO
Fair value of shares
30
28
25
40,000
45,000
50,000
Direct costs
Indirect costs
Stock issue costs
50,000
35,000
155,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa5f2d104-fba7-41e6-a2b7-cf441e2b1d10%2F73375468-ebef-41c7-95d8-92c3dfbe299c%2Fz4ihlu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PROMDI COMPANY
Property of and for the exclusive use of SLU. Repraduction, storing in a retrieval system, distributing, uploading or posting online, or transmiting in any form or by any
means, electronic, mechanical, photocopying, recording, or othenwise of any part of this document, without the prior written permission of SLU, is stricity prohibited.
2
Fair Value
體
Book Value
Fair Value
Book Value
P1,450,000 P1,440,000
900,000
600,000
1,255,000
Cash
P1,500,000 P1,500,000 Accounts Payable
750,000
355,000
1,600,000
Accounts Receivable
920,000
Inventory
Fixed Assets (Net)
740,000 Mortgage Payable
340,000 Ordinary Shares
1,520,000 Retained Earnings
PROMDI
CARDO
SYANO
Fair value of shares
30
28
25
40,000
45,000
50,000
Direct costs
Indirect costs
Stock issue costs
50,000
35,000
155,000
![The following balances were taken from the trial balance of CARDO Company and SYANO Company at the
start of the fiscal year 20x7:
CARDO COMPANY
Book Value
Fair Value
Book Value
Fair Value
Cash
Accounts Receivable
Accounts Payable
P450,000
200,000
P500,000
250,000
155,000
600,000
P500,000
240,000 Mortgage Payable
200,000 Ordinary Shares
520,000 Retained Earnings
P440,000
220,000
LO
595,000
260,000
Inventory
Fixed Assets (Net)
SYANO COMPANY
Book Value
Fair Value
Book Value
Fair Value
Accounts Payable
P350,000
200,000
250,000
175,000
P340,000
220,000
Cash
P300,000
150,000
125,000
400,000
P300,000
160,000 Mortgage Payable
100,000 Ordinary Shares
420,000 Retained Earnings
Accounts Receivable
Inventory
Fixed Assets (Net)
RS](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa5f2d104-fba7-41e6-a2b7-cf441e2b1d10%2F73375468-ebef-41c7-95d8-92c3dfbe299c%2Fh8hwbfq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following balances were taken from the trial balance of CARDO Company and SYANO Company at the
start of the fiscal year 20x7:
CARDO COMPANY
Book Value
Fair Value
Book Value
Fair Value
Cash
Accounts Receivable
Accounts Payable
P450,000
200,000
P500,000
250,000
155,000
600,000
P500,000
240,000 Mortgage Payable
200,000 Ordinary Shares
520,000 Retained Earnings
P440,000
220,000
LO
595,000
260,000
Inventory
Fixed Assets (Net)
SYANO COMPANY
Book Value
Fair Value
Book Value
Fair Value
Accounts Payable
P350,000
200,000
250,000
175,000
P340,000
220,000
Cash
P300,000
150,000
125,000
400,000
P300,000
160,000 Mortgage Payable
100,000 Ordinary Shares
420,000 Retained Earnings
Accounts Receivable
Inventory
Fixed Assets (Net)
RS
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Business/Professional Ethics Directors/Executives…
Accounting
ISBN:
9781337485913
Author:
BROOKS
Publisher:
Cengage
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Business/Professional Ethics Directors/Executives…
Accounting
ISBN:
9781337485913
Author:
BROOKS
Publisher:
Cengage
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning