Dodosolsol Inc., a new corporation formed and organized of the recent consolidation of Lalasol Inc. and Star Ic., shall issue 10% participating preferred stocks with a par value of P100 for Lalasol and Star net assets contributions, and common shares with a par value of P50 for the difference between the total shares to be issued and the preferred shares to be issued. The total shares to be issued Dodosolsol shall be equivalent to average annual earnings capitalized at 10%. Relevant data on Lalasol and Star follows: Lalasol Star Total Assets P1,440,000 864,000 92,160 P1,843,200 691,200 138,240 Total Liabilities Annual Earnings (average) The total preferred shares to be issued and the amount of goodwill to be recognized by Dodosolsol are:
Dodosolsol Inc., a new corporation formed and organized of the recent consolidation of Lalasol Inc. and Star Ic., shall issue 10% participating preferred stocks with a par value of P100 for Lalasol and Star net assets contributions, and common shares with a par value of P50 for the difference between the total shares to be issued and the preferred shares to be issued. The total shares to be issued Dodosolsol shall be equivalent to average annual earnings capitalized at 10%. Relevant data on Lalasol and Star follows: Lalasol Star Total Assets P1,440,000 864,000 92,160 P1,843,200 691,200 138,240 Total Liabilities Annual Earnings (average) The total preferred shares to be issued and the amount of goodwill to be recognized by Dodosolsol are:
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 9PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...
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A.
B. Preferred shares: P14,560 Goodwill: P1,728,000
C. Preferred shares: P5,760 Goodwill: P1,728,000
D. Preferred shares: P17,280 Goodwill: P576,000
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