Find what the amount to be reported as total assets

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Cynthia Corporation issued ordinary shares with par value of P900,000 and a market value of P1, 400,000 to acquire the net assets of Luster Company in a business combination. Cynthia reported assets of P4,000,000 and liabilities of P1,084,000 immediately before the business combination. Luster's assets and liabilities, had book values of P920,000 & P374,000, respectively. The fair values of Luster's assets and liabilities were P1,200,000 and P376,000, respectively.

Problem 1: The amount to be reported as total assets of the combined entities immediately following the business combination is:

A. 3,740,000

B. 4,316,000

C. 5,200,000

D.5,776,000

Reference no: EM132690134

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