before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued 12,000 shares as consideration for a 60% interest in Frank. Richard’s shares currently sell P55 per share in the market, while Frank’s shares are quoted at P225 per share. Richard, Inc. elected to measure NCI at “proportionate share”. With the stated facts, answer the following: 1.How much is the transaction costs incurred during the business combination? a. P 150,000.00 b. P 75,000.00 c. P 130,000.00 d. P 125,000.00 2.How much is the par value of each Richard, Inc.’s share? a. P 100 b. P 10 c. P 200 d. P 20 3.How much is the Consideration Transferred? a. P 600,000.00 b. P 2,400,000.00 c. P 660,000.00 d. P 4,000,000.00
before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued 12,000 shares as consideration for a 60% interest in Frank. Richard’s shares currently sell P55 per share in the market, while Frank’s shares are quoted at P225 per share. Richard, Inc. elected to measure NCI at “proportionate share”. With the stated facts, answer the following: 1.How much is the transaction costs incurred during the business combination? a. P 150,000.00 b. P 75,000.00 c. P 130,000.00 d. P 125,000.00 2.How much is the par value of each Richard, Inc.’s share? a. P 100 b. P 10 c. P 200 d. P 20 3.How much is the Consideration Transferred? a. P 600,000.00 b. P 2,400,000.00 c. P 660,000.00 d. P 4,000,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Case 2: before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued
12,000 shares as consideration for a 60% interest in Frank. Richard’s shares currently sell P55 per
share in the market, while Frank’s shares are quoted at P225 per share. Richard, Inc. elected
to measure NCI at “proportionate share”.
With the stated facts, answer the following:
1.How much is the transaction costs incurred during the business combination?
a. P 150,000.00
b. P 75,000.00
c. P 130,000.00
d. P 125,000.00
2.How much is the par value of each Richard, Inc.’s share?
a. P 100
b. P 10
c. P 200
d. P 20
3.How much is the Consideration Transferred?
a. P 600,000.00
b. P 2,400,000.00
c. P 660,000.00
d. P 4,000,000.00
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