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14. Quiz Buscom Date of Acquisition

The document provides a summary of financial calculations related to business combinations for SY2024-2025, including acquisition dates, goodwill computations, and consolidated balance sheets. It outlines various scenarios for consideration transferred, fair value of identifiable net assets, and the impact of contingent liabilities on non-controlling interests. Key figures include total assets, liabilities, and equity under different goodwill methods, highlighting the financial implications of these business transactions.

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Andrei Alfonzo
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2 views

14. Quiz Buscom Date of Acquisition

The document provides a summary of financial calculations related to business combinations for SY2024-2025, including acquisition dates, goodwill computations, and consolidated balance sheets. It outlines various scenarios for consideration transferred, fair value of identifiable net assets, and the impact of contingent liabilities on non-controlling interests. Key figures include total assets, liabilities, and equity under different goodwill methods, highlighting the financial implications of these business transactions.

Uploaded by

Andrei Alfonzo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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XINTEGAFAR

SUMMARY OF ANSWERS
BUSINESS COMBINATION - DATE OF ACQUISITION
SY2024-2025

1. 20,000.00
2. 480,000.00
3. 28,750.00
4. (6,000.00)
5. 370,000.00 or 265,000.00
6. 3,906,500.00 or 3,801,500.00
7. 946,500.00 or 894,000.00
8. 347,500.00 or 295,000.00
9. -
PROBLEM 1
PROMAX AND S25 ULTRA

*If consideration transferred is P70,000 and Fair Value of the NCI is P20,000.

80% 20% 100%


Parent NCI Total
FV of the Business 70,000.00 20,000.00 90,000.00
FV of the Identifiable Net Assets 56,000.00 14,000.00 70,000.00
Goodwill 14,000.00 6,000.00 20,000.00 1.

GW amount NCI amount


*Using Partial Goodwill 14,000.00 14,000.00
*Using Full Goodwill 20,000.00 20,000.00

*If consideration transferred is P60,000 and Fair Value of the NCI is not given. CONSOLIDATED BALANCE SHEET
Assets (Using Full Goodwill) Assets (Using Partial Goodwill)
80% 20% 100% Parent's Assets@BV 425,000.00 Parent's Assets@BV
Parent NCI Total Subsidiary's Assets@FV 110,000.00 Subsidiary's Assets@FV
FV of the Business 60,000.00 15,000.00 75,000.00 Cash Consideration (60,000.00) Cash Consideration
FV of the Identifiable Net Assets 56,000.00 14,000.00 70,000.00 Goodwill 5,000.00 Goodwill
Goodwill 4,000.00 1,000.00 5,000.00 Total Assets 480,000.00 2. Total Assets

GW amount NCI amount Liabities and Equity (Using Full Goodwill) Liabities and Equity (Using Partial Goodwill)
*Using Partial Goodwill 4,000.00 14,000.00 Parent's Liabilities@BV 125,000.00 Parent's Liabilities@BV
*Using Full Goodwill 5,000.00 15,000.00 Subsidiary's Liabilities@FV 40,000.00 Subsidiary's Liabilities@FV
Total Liabilities 165,000.00 Total Liabilities

Controlling Interest 300,000.00 Controlling Interest


Non-controlling Interest 15,000.00 Non-controlling Interest
Total Equity 315,000.00 Total Equity

Total Liabilities and Equity 480,000.00 Total Liabilities and Equity

*If there is a control premium of P5,000, consideration transferred is P80,000, and Fair Value of the NCI is not given.

80% 20% 100%


Parent NCI Total
FV of the Business 80,000.00 18,750.00 98,750.00
FV of the Identifiable Net Assets 56,000.00 14,000.00 70,000.00
Goodwill 24,000.00 4,750.00 28,750.00

GW amount NCI amount


*Using Partial Goodwill 24,000.00 14,000.00
*Using Full Goodwill 28,750.00 18,750.00
3.

*If consideration transferred is P50,000.

80% 20% 100%


Parent NCI Total
FV of the Business 50,000.00 14,000.00 64,000.00
FV of the Identifiable Net Assets 56,000.00 14,000.00 70,000.00
Bargain Purchase Gain (6,000.00) - (6,000.00)

BPG amount NCI amount


*Using Partial Goodwill (6,000.00) 14,000.00
*Using Full Goodwill (6,000.00) 14,000.00
4.
CONSOLIDATED BALANCE SHEET

425,000.00
110,000.00
(60,000.00)
4,000.00
479,000.00

Liabities and Equity (Using Partial Goodwill)


125,000.00
40,000.00
165,000.00

300,000.00
14,000.00
314,000.00

479,000.00
PROBLEM 2
DONBELLE CORPORATION

*COMPUTATION OF THE GOODWILL


Consideration Transferred FV of the Identifiable Net Assets
Cash @ Face Value 400,000.00 Cash 350,000.00
Land @ Fair Value 115,000.00 Accounts Receivable 180,000.00
Ordinary Stocks (5,000 shares x P10 par) 50,000.00 Inventory 150,000.00
Share Premium (5,000 shares x P5 par) 25,000.00 Supplies 112,500.00
Contingent Liability (P150,000 x 70%) 105,000.00 Property, Plant, and Equipment 375,000.00
695,000.00 Other Non-current Assets -
Current Liabilities (112,000.00)
Non-Current Liabilities (35,500.00)
1,020,000.00

If contingent liability is included on the computation of the NCI, If contingent liability is not included on the computation of the NCI,
75% 25% 100% 75% 25% 100%
Parent NCI Total Parent NCI Total
FV of the Business 1,042,500.00 347,500.00 1,390,000.00 FV of the Business 990,000.00 295,000.00 1,285,000.00
FV of the Identifiable Net Assets 765,000.00 255,000.00 1,020,000.00 FV of the Identifiable Net 765,000.00 255,000.00 1,020,000.00
Goodwill 277,500.00 92,500.00 370,000.00 5. Goodwill 225,000.00 40,000.00 265,000.00

GW amount NCI amount GW amount NCI amount


*Using Partial Goodwill 277,500.00 255,000.00 *Using Partial Goodwill 225,000.00 255,000.00
*Using Full Goodwill 370,000.00 347,500.00 8. *Using Full Goodwill 265,000.00 295,000.00 8.

Fair Value of the Business (If Contingent Liability is included) Fair Value of the Business (If Contingent Liability is not included)
Consideration Transferred 50% 695,000.00 Consideration Transfe 50% 695,000.00
Previously Held Interest 25% 347,500.00 Previously Held Interes 25% 295,000.00
NCI 25% 347,500.00 NCI 25% 295,000.00
100% 1,390,000.00 100% 1,285,000.00

*CONSOLIDATED BALANCE SHEET (IF CONTINGENT LIABILITY IS INCLUDED IN THE COMPUTATION OF NCI)
Individual Balance Sheet Consolidation
Parent Subsidiary Consolidated Consolidated Balance
Assets Initial Balance CT and Investment ARC After Acquisition Initial Balance Entries Sheet
Cash 1,000,000.00 (400,000.00) (131,000.00) 469,000.00 350,000.00 - 819,000.00
Accounts Receivable 200,000.00 - - 200,000.00 195,000.00 (15,000.00) 380,000.00
Inventory 150,000.00 - - 150,000.00 145,000.00 5,000.00 300,000.00
Supplies 60,000.00 - - 60,000.00 112,000.00 500.00 172,500.00
Property, Plant, and Equipment 1,250,000.00 (110,000.00) - 1,140,000.00 567,000.00 (192,000.00) 1,515,000.00
Other Non-current Assets 600,000.00 (250,000.00) - 350,000.00 - - 350,000.00
Investment in Subsidiary - 1,042,500.00 - 1,042,500.00 - (1,042,500.00) - 9.
Goodwill - - - - - 370,000.00 370,000.00
Consolidated Assets 3,260,000.00 282,500.00 (131,000.00) 3,411,500.00 1,369,000.00 (874,000.00) 3,906,500.00 6.

Current Liabilities 55,000.00 - - 55,000.00 115,000.00 (3,000.00) 167,000.00


Non-Current Liabilities 105,000.00 - - 105,000.00 43,000.00 (7,500.00) 140,500.00
Contingent Liability - 105,000.00 - 105,000.00 - - 105,000.00
Consolidated Liabilities 160,000.00 105,000.00 - 265,000.00 158,000.00 (10,500.00) 412,500.00

Common Stock 2,000,000.00 50,000.00 - 2,050,000.00 1,000,000.00 (1,000,000.00) 2,050,000.00


Additional Paid-in capital 150,000.00 25,000.00 (25,000.00) 150,000.00 250,000.00 (250,000.00) 150,000.00
Retained Earnings 950,000.00 102,500.00 (106,000.00) 946,500.00 (39,000.00) 39,000.00 946,500.00 7.
Non-controlling Interest - - - - - 347,500.00 347,500.00
Consolidated Equity 3,100,000.00 177,500.00 (131,000.00) 3,146,500.00 1,211,000.00 (863,500.00) 3,494,000.00

Consolidatded Liabilities and Equi 3,260,000.00 282,500.00 (131,000.00) 3,411,500.00 1,369,000.00 (874,000.00) 3,906,500.00
*CONSOLIDATED BALANCE SHEET (IF CONTINGENT LIABILITY IS NOT INCLUDED IN THE COMPUTATION OF NCI)
Individual Balance Sheet Consolidation
Parent Subsidiary Consolidated Consolidated Balance
Assets Initial Balance CT and Investment ARC After Acquisition Initial Balance Entries Sheet
Cash 1,000,000.00 (400,000.00) (131,000.00) 469,000.00 350,000.00 - 819,000.00
Accounts Receivable 200,000.00 - - 200,000.00 195,000.00 (15,000.00) 380,000.00
Inventory 150,000.00 - - 150,000.00 145,000.00 5,000.00 300,000.00
Supplies 60,000.00 - - 60,000.00 112,000.00 500.00 172,500.00
Property, Plant, and Equipment 1,250,000.00 (110,000.00) - 1,140,000.00 567,000.00 (192,000.00) 1,515,000.00
Other Non-current Assets 600,000.00 (250,000.00) - 350,000.00 - - 350,000.00
Investment in Subsidiary - 990,000.00 - 990,000.00 - (990,000.00) - 9.
Goodwill - - - - - 265,000.00 265,000.00
Consolidated Assets 3,260,000.00 230,000.00 (131,000.00) 3,359,000.00 1,369,000.00 (926,500.00) 3,801,500.00 6.

Current Liabilities 55,000.00 - - 55,000.00 115,000.00 (3,000.00) 167,000.00


Non-Current Liabilities 105,000.00 - - 105,000.00 43,000.00 (7,500.00) 140,500.00
Contingent Liability - 105,000.00 - 105,000.00 - - 105,000.00
Consolidated Liabilities 160,000.00 105,000.00 - 265,000.00 158,000.00 (10,500.00) 412,500.00

Common Stock 2,000,000.00 50,000.00 - 2,050,000.00 1,000,000.00 (1,000,000.00) 2,050,000.00


Additional Paid-in capital 150,000.00 25,000.00 (25,000.00) 150,000.00 250,000.00 (250,000.00) 150,000.00
Retained Earnings 950,000.00 50,000.00 (106,000.00) 894,000.00 (39,000.00) 39,000.00 894,000.00 7.
Non-controlling Interest - - - - - 295,000.00 295,000.00
Consolidated Equity 3,100,000.00 125,000.00 (131,000.00) 3,094,000.00 1,211,000.00 (916,000.00) 3,389,000.00

Consolidatded Liabilities and Equi 3,260,000.00 230,000.00 (131,000.00) 3,359,000.00 1,369,000.00 (926,500.00) 3,801,500.00
5.

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