Prob 1: On January 1, 2018, WONG NOODLES Corporation acquired the net assets of Natasha, Inc., by issuing 600,000 shares of its P10 par value common stock. Subsequently, Natasha was liquidated and its assets and liabilities merged into WONG NOODLES Corporation. WONG NOODLES’ stock was selling for P50 per share on January 1, 2018. The amount of goodwill recorded by WONG NOODLES in connection with the combination was P6,120,000. WONG NOODLES incurred P300,000 of legal and broker’s fees associated with the combination and P30,000 of stock issuance costs. What is the (1) fair value of Natasha’s net assets and (2) the amount of the increase in WONG NOODLES’ stockholders equity as a result of the combination? (1) 23,880,000; (2) 29,970,000 (1) 24,180,000; (2) 29,970,000 (1) 23,880,000; (2) 30,000,000 (1) 24,180,000; (2) 30,000,000
Prob 1: On January 1, 2018, WONG NOODLES Corporation acquired the net assets of Natasha, Inc., by issuing 600,000 shares of its P10 par value common stock. Subsequently, Natasha was liquidated and its assets and liabilities merged into WONG NOODLES Corporation. WONG NOODLES’ stock was selling for P50 per share on January 1, 2018. The amount of goodwill recorded by WONG NOODLES in connection with the combination was P6,120,000. WONG NOODLES incurred P300,000 of legal and broker’s fees associated with the combination and P30,000 of stock issuance costs. What is the (1) fair value of Natasha’s net assets and (2) the amount of the increase in WONG NOODLES’ stockholders equity as a result of the combination? (1) 23,880,000; (2) 29,970,000 (1) 24,180,000; (2) 29,970,000 (1) 23,880,000; (2) 30,000,000 (1) 24,180,000; (2) 30,000,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 30E
Related questions
Question
100%
Prob 1: On January 1, 2018, WONG NOODLES Corporation acquired the net assets of Natasha, Inc., by issuing 600,000 shares of its P10 par value common stock. Subsequently, Natasha was liquidated and its assets and liabilities merged into WONG NOODLES Corporation. WONG NOODLES’ stock was selling for P50 per share on January 1, 2018. The amount of
What is the (1) fair value of Natasha’s net assets and (2) the amount of the increase in WONG NOODLES’ stockholders equity as a result of the combination?
(1) 23,880,000; (2) 29,970,000
(1) 24,180,000; (2) 29,970,000
(1) 23,880,000; (2) 30,000,000
(1) 24,180,000; (2) 30,000,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning