What the amount to be reported as total assets of combined

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Cynthia Corporation issued ordinary shares with par value of P900,000 and a market value of P1, 400,000 to acquire the net assets of Luster Company in a business combination. Cynthia reported assets of P4,000,000 and liabilities of P1,084,000 immediately before the business combination. Luster's assets and liabilities, had book values of P920,000 & P374,000, respectively.

Problem 1: The fair values of Luster's assets and liabilities were P1,200,000 and P376,000, respectively. The amount to be reported as total assets of the combined entities immediately following the business combination is:

A. 3,740,000

B. 4,316,000

C. 5,200,000

D.5,776,000

Reference no: EM132723664

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