Accounting: Acquisition of Net Assets Quiz
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Questions and Answers

What was the total amount of current assets acquired from FRS and SCN companies?

  • P650,000
  • P1,125,000
  • P1,400,000
  • P2,025,000 (correct)
  • What was the total amount of noncurrent assets acquired from FRS and SCN companies?

  • P6,375,000
  • P4,850,000 (correct)
  • P4,250,000
  • P7,000,000
  • How many ordinary shares did BST issue in exchange for the net assets of FRS and SCN companies?

  • 22,500 and 11,200 (correct)
  • 33,700
  • 33,200
  • 45,700
  • What was the fair value of BST's shares used in the exchange for the net assets of FRS and SCN companies?

    <p>P150</p> Signup and view all the answers

    What was the total amount of out-of-pocket expenses paid by BST in relation to the business combination?

    <p>P45,000</p> Signup and view all the answers

    How much was the fair value of FRS Company's noncurrent assets overstated by?

    <p>P400,000</p> Signup and view all the answers

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