Accounting subject. Thank you Use the following information for the next 2 questions.On December 31, 2011, XY Corporation was merged into AB Corporation. In the business combination,AB issued 86,000 share of its P23 par common stock, with a market value price of P47 per share. Fairmarket value agrees with book values. Additional cash payments made by AB Corp. in completing theacquisition were cost of maintaining a department, P11,750 and stock issuance cost, P16,900. Thestockholders' equity section of each company's balance sheet immediately before the combination was:ABXYP2,680,000Common stockP4,225,000APIC1,850,000925,000Retained Earnings 2,040,0001,835,000How much is the net increase in additional paid-in capital to be recorded in the books of thesurviving company as a result of the business combination?How much is the Retained Earnings after the merger?

On Dec 31,2011 XY Corporation was merged into AB Corporation. AB issued 86,000 shares of the par…

How much is the net increase in additional paid-in capital to be recorded in the books of the surviving company as a result of the business combination? How much is the Retained Earnings after the merger?

How much is the net increase in additional paid-in capital to be recorded in the books of the surviving company as a result of the business combination? How much is the Retained Earnings after the merger?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 38P

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