Determine consolidated balances which peris would present

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Reference no: EM133186205

Question - On December 31, 2013, Peris Company acquired Shanta Company's outstanding stock by paying P400,000 cash and issuing 10,000 shares of its own P30 par value common stock, when the market price was P32 per share. Peris paid legal and accounting fees amounting to P35,000 in addition to stock issuance costs of P8,000. Shanta is dissolved on the date of the acquisition. Balance sheet information for Peris and Shanta immediately preceding the acquisition is shown below, including fair values for Shanta's assets and liabilities.

 

Peris

Shanta

Shanta

 

Book Value

Book Value

Fair Value

Cash

490,000

140,000

140,000

Accounts Receivable

560,000

280,000

280,000

Inventory

520,000

200,000

260,000

Land

460,000

150,000

140,000

Plant assets - net

980,000

325,000

355,000

Construction permits

380,000

170,000

190,000

Accounts payable

(460,000)

(140,000)

(140,000)

Other accrued expenses

(160,000)

(45,000)

(45,000)

Notes payable

(800,000)

(460,000)

(460,000)

Common stock (P30)

(960,000)



Common stock (P20)


(200,000)


Additional P.I.C

(192,000)

(80,000)


Retained Earnings

(818,000)

(340,000)


Required - Determine the consolidated balances which Peris would present on their consolidated balance sheet for the following accounts:

a. Cash

b. Inventory

c. Construction permits

d. Goodwill

Reference no: EM133186205

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