What amount would be shown on the on the books

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Reference no: EM132675046

On July 1, 2020, MAC acquired the net assets of GOOGLE by paying cash of P230,000 and by issuing 10,000 shares at P105 each. A contingent consideration of P125,000 stated at fair value is expected to be incurred. On this date the plant assets of MAC and GOOGLE have fair values of P2,500,000 and P1,080,000, respectively. Also, GOOGLE has an unrecorded accounts payable of P50,000. MAC paid in cash stock issuance cost of P55,000 and also incurred other acquisition costs of P45,000 which was unpaid on the date of business combination.

Problem 1: What amount would be shown on the on the books of the surviving company as total assets, and Retained Earnings.

A. P 950,000

B. P 995,000

C. P 955,000

D. P 1,000,000

Reference no: EM132675046

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