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    BUSCOM

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    Arianne Jones P. Mijos
    This document contains accounting problems related to business combinations. Problem 1 involves calculating consideration transferred, net assets acquired, and resulting goodwill. Problem 2 involves registration costs for share issuance and calculating consideration, net assets, and goodwill. Problem 3 expenses various acquisition costs. Problem 4 has multiple requirements calculating consideration, net assets, goodwill, and post-acquisition financial statements. Problem 5 calculates consideration, net assets, goodwill, and shares issued for acquisition.

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    BUSCOM

    Uploaded by

    Arianne Jones P. Mijos
    5 views3 pages
    This document contains accounting problems related to business combinations. Problem 1 involves calculating consideration transferred, net assets acquired, and resulting goodwill. Problem 2 involves registration costs for share issuance and calculating consideration, net assets, and goodwill. Problem 3 expenses various acquisition costs. Problem 4 has multiple requirements calculating consideration, net assets, goodwill, and post-acquisition financial statements. Problem 5 calculates consideration, net assets, goodwill, and shares issued for acquisition.

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    This document contains accounting problems related to business combinations. Problem 1 involves calculating consideration transferred, net assets acquired, and resulting goodwill. Problem 2 involves registration costs for share issuance and calculating consideration, net assets, and goodwill. Problem 3 expenses various acquisition costs. Problem 4 has multiple requirements calculating consideration, net assets, goodwill, and post-acquisition financial statements. Problem 5 calculates consideration, net assets, goodwill, and shares issued for acquisition.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    5 views3 pages

    BUSCOM

    Uploaded by

    Arianne Jones P. Mijos
    This document contains accounting problems related to business combinations. Problem 1 involves calculating consideration transferred, net assets acquired, and resulting goodwill. Problem 2 involves registration costs for share issuance and calculating consideration, net assets, and goodwill. Problem 3 expenses various acquisition costs. Problem 4 has multiple requirements calculating consideration, net assets, goodwill, and post-acquisition financial statements. Problem 5 calculates consideration, net assets, goodwill, and shares issued for acquisition.

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    of 3

    Business Combination

    Assignment: pp. 61

    PROBLEM #1
    Consideration Transferred 6,000,000.00
    NCI -
    PHEI -
    Total 6,000,000.00
    FVNIA (7M-50K+400K)-(2.2M-20K) 5,170,000.00
    Goodwill 830,000.00

    PROBLEM #2
    Req 1:
    Cost of registering shares 120,000.00
    Reg. of share issue 25,000.00
    Print. Cost of share certs 2,000.00
    Total expenditures dr. to SP 147,000.00

    Req 2:
    Cons. Transferred (5k x 125)+2M 2,625,000.00
    NCI -
    PHEI -
    Total 2,625,000.00
    FVNIA (3.5M-1.2M 2,300,000.00
    Goodwill 325,000.00

    Req 3:
    Listing Fees 20,000.00
    Diligence Cost 5,000.00
    Legal Fees 10,000.00
    Broker's Fee 3,000.00
    Acq. Audit Fee 8,000.00
    G&A Cost 30,000.00
    Total expenditures charged to P/L 76,000.00

    PROBLEM #3 skipped

    PROBLEM #4
    Req 1:
    Cons. Transferred 2,500,000.00
    NCI -
    PHEI -
    Total 2,500,000.00
    FVNIA (1M+105K+510K+1.3M+850K)-(1M-550) 2,215,000.00
    Goodwill 285,000.00
    Req 2:
    OS (100 par) 4,000,000.00
    SP 1,200,000.00
    RE (3.26M-35K) 3,225,000.00
    Total SHE after buscom 8,425,000.00

    Req 3:
    Cons. Transferred (24K x 115) 2,760,000.00
    NCI -
    PHEI -
    Total 2,760,000.00
    FVNIA 2,215,000.00
    Goodwill 545,000.00

    Cash (6M+1M-24K) 6,976,000.00


    Accounts Receivable (500K+105K) 605,000.00
    ADA - 40,000.00
    Inventories (1M+510) 1,510,000.00
    Land (3M+1.3M) 4,300,000.00
    Building (2M+850K) 2,850,000.00
    Acc. Dep - 500,000.00
    Goodwill 545,000.00
    Total Assets 16,246,000.00

    Req 4:
    Cons. Transferred (24K x 115) 2,760,000.00
    NCI -
    PHEI -
    Total 2,760,000.00
    FVNIA 2,215,000.00
    Goodwill 545,000.00

    Req 5:
    RE, beg. 3,260,000.00
    Accountants fee for acquisition audit 10,000.00
    Indirect costs 8,000.00
    RE after buscom 3,242,000.00

    Req 6:
    Cons. Transferred (2M x 98%) + 500K 2,460,000.00
    NCI -
    PHEI -
    Total 2,460,000.00
    FVNIA 2,215,000.00
    Goodwill 245,000.00

    Req 7:
    Accounts Payable (3M+1M) 4,000,000.00
    Notes Payable (500K+550K) 1,050,000.00
    Bonds Payable (2M-40K) 1,960,000.00
    Total Liabilities after buscom 7,010,000.00

    PROBLEM #5
    Cons. Transferred (200K x 30) 6,000,000.00
    NCI -
    PHEI -
    Total 6,000,000.00
    FVNIA (1M+2.2M+3M)-600K 5,600,000.00
    Goodwill 400,000.00

    Cons. Transferred 6,000,000.00


    divided by FV of OS 30.00
    Total shares issued for acquisition 200,000

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