34. P Company, an SME issued 60,000 shares of P100 par value…

Question Answered step-by-step 34. P Company, an SME issued 60,000 shares of P100 par value… 34. P Company, an SME issued 60,000 shares of P100 par value ordinary shares for all the outstanding stock of S Company in business combination consummated on January 2,2022. P company’s ordinary shares were selling at P P160 per share at the time of acquisition.  The book value of S net assets was P 7.6M.  Out of pocket costs of combination were as follows: Legal fees for business combination, P24,000; printing cost for stock certificate, P 18,800; finder’s fee, P54,000 and CPA audit fee for business combination, P 38,000.  A contingent consideration that is probable and can be reasonably estimated amounted to P36,400.The total amount to be capitalized as cost of investment in S company is: 35. On December 1, 2021, MAS Company sold goods on account to Lebanon Company. The amount of sale was 44,625 Lebanon pounds. The Lebanon Company will settle the account on January 2, 2022. On December 1, the spot rate was 40 Lebanon pounds for one Philippine peso. Also, on December 1, MAS Company entered into a future contract to sell the 44,625 Lebanon pounds on January 2, 2022 at a forward rate of 25 Lebanon pounds for one Philippine peso. The spot rate and forward rate for one Philippine peso on December 31, 2021 is 30 Lebanon pounds and 50 Lebanon pounds, respectively. How much is the foreign exchange loss on hedging instrument? 36. Victory Corporation issued a promissory note denominated in foreign currency for the purchase made from a supplier in England on December 1, for a 60-day, 18% promissory note for 108,000 pounds, at a selling rate of 1FC to P74.20. On December 31, the selling spot rate is 1FC to P74.85. On January 30, the selling spot rate is 1FC to P75.75. On the settlement date, how much is the foreign exchange loss? Business Accounting Share QuestionEmailCopy link Comments (0)