PROBLEM 4 The following are the balances of LITTLE Company and BOY Company as of January 1, 20×1. Dianne Company BV FV Assets 4,000,000 4,200,000 Liabilities 1,000,000 900,000 Corpuz Company

PROBLEM 4 The following are the balances of LITTLE Company and BOY Company as of January 1, 20×1. Dianne Company              BV                      FV Assets                           4,000,000             4,200,000 Liabilities                      1,000,000             900,000 Corpuz Company Assets 3,000,000             2,900,000 Liabilities                        500,000               600,000 The companies combined their resources and formed CHAN Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,000. The company also incurs direct costs of 50,000 and indirect cost of 20,000. Determine the total assets of Dark Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 yr.

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