P Co. issued 6,000 shares of its common stock, valued at $300,000, to the former shareholders of S Company two years after S Company was acquired in a stock acquisition. The additional shares were issued because P Company agreed to issue additional shares of common stock if the average post combination earnings over the next two years exceeded $600,000. P Company balance sheet will result a(n): O Increase in common stock
P Co. issued 6,000 shares of its common stock, valued at $300,000, to the former shareholders of S Company two years after S Company was acquired in a stock acquisition. The additional shares were issued because P Company agreed to issue additional shares of common stock if the average post combination earnings over the next two years exceeded $600,000. P Company balance sheet will result a(n): O Increase in common stock
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 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...
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