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    Total Assets at DOA FV of Identifiable Net Assets 2,374,000

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    Kevin Jay Pagaduan
    1) The document presents financial information related to an acquisition including the fair value of identifiable assets and liabilities acquired, consideration transferred, goodwill recognized, and equity interests. 2) It calculates the fair value of net assets, consideration transferred, goodwill, and equity shares issued at closing based on the acquisition method. 3) The information provided is used to account for the business combination and allocate the purchase price to the assets acquired and liabilities assumed.

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    Total Assets at DOA FV of Identifiable Net Assets 2,374,000

    Uploaded by

    Kevin Jay Pagaduan
    56 views14 pages
    1) The document presents financial information related to an acquisition including the fair value of identifiable assets and liabilities acquired, consideration transferred, goodwill recognized, and equity interests. 2) It calculates the fair value of net assets, consideration transferred, goodwill, and equity shares issued at closing based on the acquisition method. 3) The information provided is used to account for the business combination and allocate the purchase price to the assets acquired and liabilities assumed.

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    Business comb

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    1) The document presents financial information related to an acquisition including the fair value of identifiable assets and liabilities acquired, consideration transferred, goodwill recognized, and equity interests. 2) It calculates the fair value of net assets, consideration transferred, goodwill, and equity shares issued at closing based on the acquisition method. 3) The information provided is used to account for the business combination and allocate the purchase price to the assets acquired and liabilities assumed.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    56 views14 pages

    Total Assets at DOA FV of Identifiable Net Assets 2,374,000

    Uploaded by

    Kevin Jay Pagaduan
    1) The document presents financial information related to an acquisition including the fair value of identifiable assets and liabilities acquired, consideration transferred, goodwill recognized, and equity interests. 2) It calculates the fair value of net assets, consideration transferred, goodwill, and equity shares issued at closing based on the acquisition method. 3) The information provided is used to account for the business combination and allocate the purchase price to the assets acquired and liabilities assumed.

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    © All Rights Reserved
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    Cash 300,000 BV of Assets - P Co.

    Accounts Receivable 980,000 FV of Identifiable Assets


    Inventory 600,000 Goodwill
    Building 1,064,000 Cash Payment for BC
    FV of Identifiable Assets 2,944,000 Cash Payment for Expenses
    Liabilities - 570,000 [1] Total Assets at DOA
    FV of Identifiable Net Assets 2,374,000
    BV of Liabilities - P Co.
    Cash 850,000 FV of Liabilities Assumed
    FV of equity shares 3,110,000 Contingent Consideration
    Contingent Consideration 11,800 [2] Total Liabilities at DOA
    Total Consideration 3,971,800
    FV of Identifiable Net Assets - 2,374,000
    Goodwill 1,597,800
    8,900,000
    2,944,000
    1,597,800
    - 850,000
    - 48,600
    12,543,200

    1,000,000
    570,000
    11,800
    1,581,800
    Current Assets 404,500
    Plant Assets 690,000
    Patent 48,000
    FV of Identifiable Assets 1,142,500
    Current Liabilities - 107,500
    Long-term Debt - 297,500
    FV of Identifiable Net Assets 737,500

    FV of equity shares 353,100


    Cash 145,000
    Total Consideration 498,100
    FV of Identifiable Net Assets - 737,500
    Gain on Bargain Purchase 239,400
    FV of equity shares 353,100
    Expenses charged to RE - 47,500
    Net Increase in SHE 545,000
    FV of Identifiable Assets 1,280,000
    FV of Liabilities - 716,000
    FV of Identifiable Net Assets 564,000

    Cash payment for BC 510,000


    Control Premium - 30,000
    Basis in computing NCI@FV 480,000
    NCI % /75% x25%
    NCI @FV 160,000

    Cash payment for BC 510,000


    NCI @FV 160,000
    FV of Identifiable Net Assets - 564,000
    Goodwill 106,000
    FV of Identifiable Net Assets 8,400,000
    NCI % 35%
    NCI @ Proportionate 2,940,000
    NCI @FV 2,400,000

    Cash payment for BC (40%) 4,800,000


    NCI @ Proportionate (35%) 2,940,000 Higher NCI.
    Prev. Held Interest (25%) 1,920,000
    FV of Identifiable Net Assets - 8,400,000
    Goodwill 1,260,000
    Accounts Receivable 980,000 BV of Assets - P Co.
    Inventory 600,000 FV of Identifiable Assets
    Building 1,064,000 Goodwill
    FV of Identifiable Assets 2,644,000 Cash Payment for BC
    Liabilities - 570,000 Cash Payment for Expenses
    FV of Identifiable Net Assets 2,074,000 [2] Total Assets at DOA

    Cash 850,000 Share Capital


    FV of equity shares 3,110,000 Share Premium
    Contingent Consideration 11,800 Retained Earnings
    Total Consideration 3,971,800 FV of equity shares
    FV of Identifiable Net Assets - 2,074,000 Cash Payment for Expenses
    [1] Goodwill 1,897,800 [3] Total SHE at DOA
    8,900,000
    2,644,000
    1,897,800
    - 850,000
    - 60,600
    12,531,200

    1,600,000
    900,000
    5,400,000
    3,110,000
    - 60,600
    10,949,400
    Total out-of-pocket costs 147,500 Current Assets
    Expenses Paid by Acquirer - 57,500 Cash
    Reimbursement to acquiree 90,000 Plant Assets
    FV of Identifiable Assets
    Total Cash Payment 1,500,000 Current Liabilities
    Reimbursement to acquiree - 90,000 Long-term Debt
    Cash payment for BC 1,410,000 FV of Identifiable Net Assets

    Cash payment for BC 1,410,000


    FV of Identifiable Net Assets - 1,144,900
    [1] Goodwill 265,100
    FV of Identifiable Assets 2,550,000
    Cash payment for BC - 1,410,000
    Reimbursement to acquiree - 90,000
    Expenses Paid by Acquirer - 57,500
    [2] Net Increase in the Assets 1,257,600
    1,300,000
    - 250,000
    1,500,000
    2,550,000
    - 607,600
    - 797,500
    1,144,900
    OS Capital - Agas Co. 5,000,000 Current Assets
    Par value 5 PPE
    Oustanding Shares 1,000,000 Liabilities
    Acquired Shares 700,000 FV of Identifiable Net Assets
    % of ownership 70% NCI %
    NCI Proportionately
    FV per share 13 NCI @FV
    Control Premium 1.5
    Basis 11.5
    # of shares 700,000
    Total 8,050,000
    NCI % /70% x30%
    NCI @FV 3,450,000

    Consi transferred (700,000@13) 9,100,000


    NCI @FV 3,450,000
    FV of Identifiable Net Assets - 10,000,000
    [1] Goodwill 2,550,000
    2,000,000
    11,000,000
    - 3,000,000
    10,000,000
    30%
    3,000,000
    3,450,000
    Consideration transferred 80,000,000
    FVNA - 5/1/19 - 65,000,000
    Goodwill 15,000,000

    Even fair values were finalized at 7/31/19, Measurement Period


    provides 1 year from acquisition date therefore fair values used was
    the latest valuation before 7/1/19 which is 5/1/19.
    CV of Identifiable Net Assets 17,000,000
    Undervaluation of Inventories 200,000
    Undervaluation of Machineries 1,000,000
    FV of Identifiable Net Assets 18,200,000
    NCI % 40%
    NCI @ Proportionate 7,280,000
    NCI @FV 7,000,000

    Cash payment for BC (35%) 5,600,000


    PHI % /35% x25%
    PHI @FV 4,000,000

    Cash payment for BC (35%) 5,600,000


    NCI @ Proportionate (40%) 7,280,000 Higher NCI.
    Prev. Held Interest (25%) 4,000,000
    FV of Identifiable Net Assets - 18,200,000
    Gain on Bargain Purchase - 1,320,000
    Current Assets 400,000
    Property & Equipment 1,600,000
    Liabilities - 400,000
    FV of Identifiable Net Assets 1,600,000
    Goodwill 200,000
    Consideration transferred 1,800,000
    Fair value of shares 40
    Shares to be issued 45,000

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