X Corporation is a company involved in manufacturing mining equipment. At the
beginning of the year, the board of directors of the said company has decided to enter into a
business combination with Y Corporation and Z Corporation, top suppliers
of materials in the mining industry which they use in production. The said acquisition is
expected to result in producing higher quality mining equipment with lower total cost. The
deal was closed on February 28, 2024 and the following information was gathered from the
books of the entities.

X, who has the legal and economic entity will issue 135,000 of its ordinary shares In
exchange for the acquisition of Y and P67,200 of its ordinary shares in exchange
for the acquisition of Z. The fair value of X's share is-P150,

In addition, the following adjustments should-be made to the current assets of Y and Z
which has a fair value of /2,700,000 and P1,380,000, "respectively. The noncurrent assets
has a fair value of P12,900,000 and R11,850.000 for Y and Z, respectively.
 

11. Compute the combined stakeholder's equity of the surviving company on the date of acquisition
12. Compute the combined assets
13. Combined liabilities
14. Compute on goodwill/gain on bargain on Y Corporation
15. Compute on goodwill/gain on bargain on Z Corporation

Transcribed Image Text:

Current assets Noncurrent assets Total assets 8,250,000 18,750,000 2,340,000 15,300,000 1,560,000 10,200,000 27,000,000 17,640,000 11,760,000 Liabilities 1,950,000 A 1,260,000 840,000 Ordinary shares, P100 par 16,491,000 10,681,200 7,120,800 Share premium 1,059,000 1,018,800 679,200 Retained earnings. 7,500,000 4,680,000 3,120,000 Total liabilities and equities 27,000,000 17,640,000 11,760,000 Current assets Noncurrent assets Total assets 8,250,000 18,750,000 2,340,000 15,300,000 1,560,000 10,200,000 27,000,000 17,640,000 11,760,000 Liabilities 1,950,000 A 1,260,000 840,000 Ordinary shares, P100 par 16,491,000 10,681,200 7,120,800 Share premium 1,059,000 1,018,800 679,200 Retained earnings. 7,500,000 4,680,000 3,120,000 Total liabilities and equities 27,000,000 17,640,000 11,760,000