SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD’s retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.what is the Retained Earnings after the merger? The following are the condensed balance sheet of GM and SR on January 01, 2018:GMSRTotal AssetsP 3,057,500P 10,250,000P 2,775,000P 3,100,000P 1,250,000LiabilitiesP 800,000Ordinary SharesShare premiumRetained earningsP 1,295,000P 100,000P 862,500P 3,125,000SD Corp also incurred the following unpaid expenses:GMSRР 93,750P 66,250Р 343,750P 125,000P 101,250P 35,000Indirect costFinder's feeAccounting and legal fees for SEC registrationPrinting cost of stock certificatesP 362,500P 93,750

After the merger, the retained earnings of the acquired company become retained earnings of the…

SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD’s retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition. what is the Retained Earnings after the merger?

SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD’s retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition. what is the Retained Earnings after the merger?

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 4MC

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