On January 1, 2014, Potter issued 200,000 additional shares of P10 par value common stock for all of Snape Company’s common stock. Immediately before this business combination, Potter’s stockholder’s equity was P8,000,000 and Snape’s stockholder’s equity was P4,000,000. On January 1, 2014, the fair market value of Potter’s stock was P20 per share, and the fair value of Snape’s net assets was P4,200,000. Data from separate company’s 2014 operations follows: Potter Snape Net Income P1,250,000 P300,000 Dividends paid 450,000 - What is the consolidated stockholder’s equity at December 31, 2014? A. P11,300,000 B. P13,300,000 C. P11,100,000 D. P9,100,000
On January 1, 2014, Potter issued 200,000 additional shares of P10 par value common stock for all of Snape Company’s common stock. Immediately before this business combination, Potter’s
Potter Snape
Net Income P1,250,000 P300,000
Dividends paid 450,000 -
What is the consolidated stockholder’s equity at December 31, 2014?
A. P11,300,000
B. P13,300,000
C. P11,100,000
D. P9,100,000
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