ter Corp acquired dinary shares with yment of cash of F
Chapter7: Corporations: Reorganizations
Section: Chapter Questions
Problem 23P
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Transcribed Image Text:Peter Corp acquired the net identifiable assets of Simon Corp by issuing its own 5,000
ordinary shares with par and fair value of P100 and P125 per share, respectively and
payment of cash of P2,000,000. The assets and liabilities of Simon have fair values of
P3,500,000 and P1,200,000, respectively. Peter Corp incurred the following other
related cost of acquiring Simon Corp. such as cost of registering shares P120,000
including listing fees of P20,0003; due diligence cost of P5,000; legal fees P10,000;
broker's fee P3,000; Audit fee for SEC registration of share issue P25,000; printing cost
of share certificates P2,000; pre acquisition audit fee P8,000; and general and
administrative cost of maintaining an internal acquisition P30,000.
The total expenditures that should be debited to share premium?
125,000
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