Irish Corp. acquired the net assets of Joan Corp by paying cash of P2,000,000 and issuance...

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Irish Corp. acquired the net assets of Joan Corp by paying cash of P2,000,000 and issuance of bond with face value of P500,000, the bonds has a current market value of 99. The bonds are classified as financial liability at amortized cost. Irish Corp also paid bond issue cost of P5,000 and incurred indirect cost of P10,000. The statement of financial position of Joan Corp prior to combination is presented below: Cash Accounts Receivable Allowance for doubtful account Inventory Property, plant and equipment Total Assets Book Value Fair Value 1,000,000 1,000,000 80,000 75,000 (10,000) 420,000 400,000 1,200,000 1,500,000 2,690,000 2,975,000 Other liabilities Ordinary share P100 par 600,000 600,000 Share premium 1,000,000 Retained Earnings 500,000 Total Liabilities and SHE 590,000 2,690,000 AND CONSOLIDATION Req. 1 Compute the increase in total assets of acquirer after combination? R1.005.000 Req. 2: Compute the increase in liability of acquirer after combination? P1.090.000 P1.080 000 Irish Corp. acquired the net assets of Joan Corp by paying cash of P2,000,000 and issuance of bond with face value of P500,000, the bonds has a current market value of 99. The bonds are classified as financial liability at amortized cost. Irish Corp also paid bond issue cost of P5,000 and incurred indirect cost of P10,000. The statement of financial position of Joan Corp prior to combination is presented below: Cash Accounts Receivable Allowance for doubtful account Inventory Property, plant and equipment Total Assets Book Value Fair Value 1,000,000 1,000,000 80,000 75,000 (10,000) 420,000 400,000 1,200,000 1,500,000 2,690,000 2,975,000 Other liabilities Ordinary share P100 par 600,000 600,000 Share premium 1,000,000 Retained Earnings 500,000 Total Liabilities and SHE 590,000 2,690,000 AND CONSOLIDATION Req. 1 Compute the increase in total assets of acquirer after combination? R1.005.000 Req. 2: Compute the increase in liability of acquirer after combination? P1.090.000 P1.080 000