On January 1, 20x1, the partners in ABC Co. decided to admit other investors and convert the partnership into a corporation. Relevant information follows: Carrying amounts Fair values Cash 80,000 80,000 Receivables 240,000 160,000 Inventory Equipment Payables A, Capital (20%) B, Capital (30%) C, Capital (50%) 320,000 280,000 2,160,000 2,680,000 200,000 200,000 600,000 N/A 800,000 N/A 1,200,000 N/A The corporation has an authorized capitalization of PS,000,000 divided into 200,000 ordinary shares with par value of P40 per share. Assume that the adjusted capital balances of the partners are used in determining the number of shares to be issued to each partner. What is the aggregate par value of the total shares issued to the partners?
On January 1, 20x1, the partners in ABC Co. decided to admit other investors and convert the partnership into a corporation. Relevant information follows: Carrying amounts Fair values Cash 80,000 80,000 Receivables 240,000 160,000 Inventory Equipment Payables A, Capital (20%) B, Capital (30%) C, Capital (50%) 320,000 280,000 2,160,000 2,680,000 200,000 200,000 600,000 N/A 800,000 N/A 1,200,000 N/A The corporation has an authorized capitalization of PS,000,000 divided into 200,000 ordinary shares with par value of P40 per share. Assume that the adjusted capital balances of the partners are used in determining the number of shares to be issued to each partner. What is the aggregate par value of the total shares issued to the partners?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 1MC
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