Preferred shares: P14,560 Goodwill: P1,728,000Preferred shares: P17,280 Goodwill: P576,000Preferred shares: P11,520 Goodwill: P576,000Preferred shares: P5,760 Goodwill: P1,728,000*correction: investment fmv is referring to inventory Dodosolsol Inc., a new corporation formed and organized of the recent consolidation of Lalasol Inc. and Star In.,shall issue 10% participating preferred stocks with a par value of P100 for Lalasol and Star net assets contributions,and common shares with a par value of P50 for the difference between the total shares to be issued and thepreferred shares to be issued. The total shares to be issued Dodosolsol shall be equivalent to average annualearnings capitalized at 10%. Relevant data on Lalasol and Star follows:LalasolP1,440,000864,00092,160StarTotal AssetsP1,843,200691,200138,240Total LiabilitiesAnnual Earnings (average)The total preferred shares to be issued and the amount of goodwill to be recognized by Dodosolsol are:

Goodwill is the amount of consideration over the net identifiable assets. Consideration is the total…

Preferred shares: P14,560 Goodwill: P1,728,000 Preferred shares: P17,280 Goodwill: P576,000 Preferred shares: P11,520 Goodwill: P576,000 Preferred shares: P5,760 Goodwill: P1,728,000 *correction: investment fmv is referring to inventory

Preferred shares: P14,560 Goodwill: P1,728,000 Preferred shares: P17,280 Goodwill: P576,000 Preferred shares: P11,520 Goodwill: P576,000 Preferred shares: P5,760 Goodwill: P1,728,000 *correction: investment fmv is referring to inventory

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 9PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...

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