Man merged with San Corporation in a business combination in which San issued 30,000 shares of its $5 par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The journal entry for the merger includes: a. Debit to investment in common stock of Man company $ 600,000. b. Debit to investment in common stock of Man company $ 450,000. c. Debit to investment in common stock of Man company $ 150,000. d. Debit to investment in common stock of Man company $ 300,000.

Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the…

A: solution given Number of ABC co’s share 60000 Par value per share 40 Fair value of…

Q: P Company, an SME, issued 120,000 shares of P25 par value ordinary shares for all the outstanding…

A: Step-by-step explanation 1. Following the Full PFRS, the cost of investment would be the Fair…

Q: Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the…

A: Given information is: Prior to being united in a business combination, Atkins, Inc., and Waterson…

Q: anna Ltd. enters into a business combination with Noah Inc. in which Manna purchases all of the…

A: Step 1 Business Combination is an acquisition of one entity by another one by Paying Purchase…

Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…

A: Correct option: 203,000 Incorrect option: 76,000 30,000 56,000

Q: Prior to being united in a business combination, Big Inc. and Little Inc. had the following…

A: CONSOLIDATED ADDITIONAL PAID IN CAPITAL : COMPANY (BIG) SELLS 51,000 COMMON STOCK VALUED AT $1 AT…

Q: n the December 31, year 1 consolidated balance sheet, common stock should be reported at

A: When preparing consolidated financial statements, all the items of balance sheet of both companies…

Q: AAA Co. merged into BBB Corporation on July 1, 2013. In exchange tor the net assets at fair market…

A:

Q: Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In…

A:

Q: Paul Corporation acquired 80 percent of Saul Company on January 1, 2019, by issuing 118,000 shares…

A: Acqusition Cost It may be incurred several cost which are related with the Acqusition cost while…

Q: arent Company, an SME issued 60,000 shares of P100 par value ordinary shares for all the outstanding…

A: Solution Concept In the context of business combination Nature of cost Treatment Direct…

Q: On December 31, year 1, Saxe Corporation was acquired by Poe Corporation. In the business…

A: solution concept additional paid in capital                 Additional paid in capital is the amount…

Q: CARBS Company merged into CREATIN Company on July 1, 2021. In exchange for the net assets at fair…

A: The explanation for expenses not being considered:

Q: Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the…

A: The additional paid-in capital is the value of share capital above its par value. The additional…

Q: Man merged with San Corporation in a business combination in which San issued 30,000 shares of its…

A: Common stock is the equity shares of the company held in the hands of the shareholders of the…

Q: Wendelle paid finder's fees of P40,000, acco legal fees (advisory) of P15,000, salaries of V to the…

A: When a cost is expensed, it is recorded on income statement and deducted from revenue to calculate…

Q: Man merged with San Corporation in a business combination in which San issued 30,000 shares of its…

A: Merger means where two or more companies comes together and one company merge into another company…

Q: Sandusky Corporation purchased 3,000 shares of its own $1 par value common stock for $143,000. As a…

A: The activity of purchase of its own shares by a company means there is treasury stock.

Q: Choose the correct. On January 1, Balanger Company buys 10 percent of the outstanding shares of its…

A:

Q: On January 1, 20X3, Parent Corporation reported total assets of $470,000, liabilities $270,000, and…

A: As per IFRS 10 which specifies how consolidated financial statements to be prepared and presented.

Q: rted by Alakdan Co. ii. The total assets of Alakdan Co. after the business combination. iii. The…

A: Goodwill is referred to as amount which exceeds the fair value of assets and liabilities assumed by…

Q: P Company, an SME, issued 120,000 shares of P25 par value ordinary shares for all the outstanding…

A: All business combinations of the SMEs shall be accounted for by applying the purchase method of…

Q: Through the payment of $14,890,000 in cash, Drexel Company acquires voting control over Young…

A: Acquisition: An acquisition is when one firm acquires the majority of or all of the shares of…

Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…

A: In the Acqusition cost of equity the expenses like legal and brokerage fees, due diligence, audit…

Q: On January 1, NewTune Company exchanges 17,049 shares of its common stock for all of the outstanding…

A: A balance sheet refers to a written statement of a company prepared at the end of the accounting…

Q: Subsidiary Company was merged with Parent Corporation on December 31, 2021. In the business…

A: Retained earnings immediately after the combination is P4,035,000. Explanation:

Q: On January 1, NewTune Company exchanges 19,633 shares of its common stock for all of the outstanding…

A: Consolidation refers to the acquisition of many small companies by one company by obtaining the…

Q: Pauline Company issued 240,000 shares of P10 par common stock with a fair value of P5,100,000 for…

A: A business combination occurs in the case of merger and acquisition.

Q: Prior to the merger, Glassons has $1,250 in total earnings with 750 shares outstanding at a market…

A: Earnings per shares after merger = [ Earnings of Glassons + Earnings of Country road ] / [ Number of…

Q: On January 1, NewTune Company exchanges 16,329 shares of its common stock for all of the outstanding…

A: A balance sheet is a representation of an individual's personal or corporation's financial balances…

Q: Price Company issued 8,740 shares of its $20 par value common stock for the net assets of Sims…

A: In case of business combination purchased consideration for issue of stock shall be taken at fair…

Q: On December 31, 2006, Alpha Corporation issued 18,000 shares of its Br 2 par (current fair value of…

A: As per paragraph 8 of IFRS 3, the acquirer shall identify the acquisition date, which is the dateon…

Q: On January 1, 20X3, Parent Corporation reported total assets of $470,000, liabilities $270,000, and…

A: Parent company: Parent company means a company which has controlling interest in another company .…

Q: Parent Company, an SME issued 60,000 shares of P100 par value ordinary shares for all the…

A: Acquisition related costs are not a part of purchase consideration and shall be charged to statement…

Q: Prior to being united in a business combination, Taunton Inc. and Eubanks Corp. had the following…

A: Shares: Shares are the units of the total stock of a company that show the fractional ownership of…

Q: Porter Corporation owns all 30,000 shares of the common stock of Street, Inc. Porter has 60,000…

A:

Q: Q1.  How much is the consideration transferred?   Q2. What is the consolidated balance for Land?…

A: Q.1 Consideraion Transferred   40,000 Shares * $32/share = $1280000 Q.2 Consolidated Balance for…

Q: On January 1, NewTune Company exchanges 15,000 shares of its common stock for all of the outstanding…

A: The following computations are done to account for the consolidation of New Tune Co. and On-the Go…

Q: Parent Company, an SME issued 60,000 shares of P100 par value ordinary shares for all the…

A: The answer for the multiple choice question and relevant calculation of total amount to be…

Q: Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000 ordinary…

A: According to IFRS 3, Acquisition-related costs incurred by the acquiring company to effect the…

Q: XENON Company merged into URANIUM Company on July 1, 2021. In exchange for the net assets at fair…

A: In a business combination, the acquisition-related cost is recognized in the profit and loss account…

Q: Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the…

A: The business combination is a method by which two or more companies are amalgamate and form a new…

Q: Parent Company, an SME issued 60,000 shares of P100 par value ordinary shares for all the…

A: Solution Concept In the context of business combination Direct cost Included in cost of…

Q: Name Company, an SME, issued 120,000 shares of P25 par value ordinary shares for all the outstanding…

A: Capitalized Cost Capitalization cost which is described as additional cost which are incurred in the…

Q: On 1/1/20x1, Petwoud Company exchanged 25,000 shares of its $1 par value common stock and $150,000…

A: Acquisition refers to acquiring shares of one company by another company in a large percentage. This…

Q: Parent Company, an SME issued 60,000 shares of P100 par value ordinary shares for all the…

A: Solution Concept In the context of business combination Nature of cost Treatment Direct…

Q: Entity A acquired sixty per cent of the issued equity shares of entity B by exchanging three shares…

A: Given that the entity A has acquired sixty percent of the issued equity shares of entity B. Total…