Petron Company issued 5 shares in exchange for each ordinary share of Shell Company (all outstanding...

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Petron Company issued 5 shares in exchange for each ordinary share of Shell Company (all outstanding shares) on January 2, 2022. The fair value of Petron's shares on that date was P60 while the fair value of Shell's shares was P200. The statement of financial position of both companies before the combination were (see image below). On the same date, the fair value of Petron's identifiable assets and liabilities assumed was P5,800 and P2,100 respectively while the fair value of Shell's net assets was the same as the carrying value. How much is the goodwill/gain on bargain purchase? (2 Points) Assets Total Liabilities Share Capital - 100 shares Share Capital - 60 shares Retained Earnings Total Petron 5,500 5,500 2,100 900 2,500 5,500 Shell 11,500 11,500 5,100 1,800 4,600 11,500 Petron Company issued 5 shares in exchange for each ordinary share of Shell Company (all outstanding shares) on January 2, 2022. The fair value of Petron's shares on that date was P60 while the fair value of Shell's shares was P200. The statement of financial position of both companies before the combination were (see image below). On the same date, the fair value of Petron's identifiable assets and liabilities assumed was P5,800 and P2,100 respectively while the fair value of Shell's net assets was the same as the carrying value. How much is the goodwill/gain on bargain purchase? (2 Points) Assets Total Liabilities Share Capital - 100 shares Share Capital - 60 shares Retained Earnings Total Petron 5,500 5,500 2,100 900 2,500 5,500 Shell 11,500 11,500 5,100 1,800 4,600 11,500

Answer rating: 100% (QA)

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