The number of shares issued when market value of common stock is $25 per share. Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

P Inc. purchased 81% of the voting shares of S Inc for $696,143 cash on January 1, year 2. P recorded Investment in S at cost. The Balance Sheet of P Inc. & S Inc. for year 5 showed the following balances P Inc. S Inc. Investment $696,143 $90,653 What is the amount for Investment on Consolidated Balance Sheet of P Inc. for year5?

A, B, C, and D are companies to be combined. Just prior to the combination, their individual stockholder’s equity consists of the following balances:Company A is the surviving entity. It issued 20,000, P69 par value ordinary shares, with FMV of P91; dispersed to the stockholders of the acquired companies. 1. How much goodwill is to be recognized assuming that the net assets are fairly valued?a. P 845,000.00b. P 695,000.00c. P 485,000.00d. P 440,000.00 2. Following the problem above, how much is the Share Premium of the combined entity after the combination?a. P 845,000.00b. P 695,000.00c. P 485,000.00

E 1-5 Journal entries to record an acquisition with direct costs and fair value/book value differences On January 1, Pop Corporation pays $400,000 cash and also issues 36,000 shares of $10 par common stock with a market value of $660,000 for all the outstanding common shares of Son Corporation. In addition, Pop pays $60,000 for registering and issuing the 36,000 shares and $140,000 for the other direct costs of the business combination, in which Son Corporation is dissolved. Summary balance sheet information for the companies immediately before the merger is as follows (in thousands): Pop Book Value Son Book Value Son Fair Value Cash $ 700 $ 80 $ 80 Inventories 240 160 200 Other current assets 60 40 40 Plant assets—net 520 360 560 Total assets $1,520 $640 $880 Current liabilities $ 320 $ 60 $ 60 Other liabilities 160 100 80 Common stock, $10 par 840 400…

Answer 2

Question

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Answer 6

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

Answer 7

Chapter 1, Problem 1.20E

a.

To determine

To calculate: The number of shares issued when market value of common stock is $25 per share.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

Answer 8

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

Answer 9

b.

To determine

To calculate: The par value per share of common stock.

Introduction: Common stock is a security or investment that represents ownership in the company. It is the part of company’s capital that provides shareholders a right to share profits and vote on company’s policies and composition of board of directors.

Answer 10

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Answer 11

c.

To determine

To calculate: The amount of goodwill at the time of business combination.

Introduction: Goodwill is an intangible asset that specifies the market value of the company. It includes the company’s brand value, customer base and relation, and relationship with employees. It is not separately defined and has a contractual or legal right on the company.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3Q Ch. 1 - Prob. 1.4Q Ch. 1 - Prob. 1.5Q Ch. 1 - Prob. 1.6Q Ch. 1 - Prob. 1.8Q Ch. 1 - Prob. 1.9Q Ch. 1 - Prob. 1.10Q Ch. 1 - Prob. 1.11Q

Solution Summary: The author explains that common stock is a security or investment that represents ownership in the company.

Concept explainers

Want to see the full answer?

Chapter 1 Solutions