On January 2, 2017, MIN Company purchased 1,500 shares of the outstanding common stock of...
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On January 2, 2017, MIN Company purchased 1,500 shares of the outstanding common stock of KOOK Company for P140,000 and additional payment of. P4,000 indirect cost and P5,000 direct cost. On that date, the assets and liabilities of KOOK Company had fair market values as indicated below. Balance sheets of the companies on January 2, 2017, after acquisition are as follows: MIN Company Cash Accounts Receivable Inventory Land Building, net Equipment, net Investments in KOOK Company P 80,000 56,000 56,000 28,000 163,000 224,000 149,000 P 756,000 KOOK Company Book Value Fair value P 14,000 P 14,000 28,000 28,000 22,000 28,000 54,000 60,000 72,000 98,000 56,000 39,000 P 246,000 P 42,000 16,000 62,000 16,000 52,000 320,000 50,000 Accounts Payable 8% Bonds Payable Common Stock -MIN Company, P40 par Common Stock -KOOK Company, P25 par Additional Paid-In Capital MIN Company Additional Paid-In Capital KOOK Company Retained Earnings -MIN Company Retained Earnings - KOOK Company 100,000 56,000 294,000 62,000 P 246,000 P 756,000 Requirements: As a result of business combination, the amount of total net assets is The Retained earnings balance is
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