Plata Corporation paid P100,000 cash for the net assets of Oro Company, which consisted of the following: Book Value P20,000 80,000 20,000 Fair Value P28,000 110,000 18,000 Current assets Property and equipment Liabilities assumed The property and equipment acquired in this business combination should be recorded at: 4

Plata Corporation paid P100,000 cash for the net assets of Oro Company, which consisted of the following: Book Value P20,000 80,000 20,000 Fair Value P28,000 110,000 18,000 Current assets Property and equipment Liabilities assumed The property and equipment acquired in this business combination should be recorded at: 4. P110,000 b. P100,000 c. P 91,666 d. P 90,000 13-7: Abel and Cain Corporations were combined on April 1, 2017 in a business combination, and Cain Corporation was dissolved and liquidated. For the year 2017, the companies had the following net income records: Abel Corporation (January 11-April 1) P 80,000 Abel Corporation (April 1-December 31) 1,320,000 Cain Corporation (January 1-April 1) 200,000 Cain Corporation (April 1-December 31) 400,000 Abel Corporation, the surviving corporation, will report income for 2013 of: P1,320,000 b. P1,400,000 P1,720,000 d. P1,800,000 a. 13-8: On April 27, 2017, Peter, Inc. paid P800,000 for the assets of Ana Company. The recorded assets and liabilities of Ana Company on April 27,2017 follow: Cash P160,000 Inventory 480,000 Property and equipment (net of accumulated depreciation of P640,000) 960,000 Liabilities 360,000