After the combination, what is the total shareholders' equity of Parent Company?A. 38,000,000B. 37,250,000C. 37,850,000D. 52,250,000 The shareholders' equities of Parent and Sub Companies at July 15, 2022 were as follows:Parent15,000,0002,000,000Sub8,000,000Share Capital, P100 parShare Premium4,000,000Retained Earnings6,000,0003,000,000On July 15, 2022, Parent issued 120,000 of its shares with a market value of P120 pershare for the assets and liabilities of Sub, and Sub was dissolved. On the same day,Parent paid P50,000 for professional fees for arranging the combination and P100,000 forSEC registration of equity securities.

Total Shareholders equity after the combination will be Current Shareholders equity plus Issued…

The shareholders' equities of Parent and Sub Companies at July 15, 2022 were as follows: Parent 15,000,000 Sub 8,000,000 4,000,000 Share Capital, P100 par Share Premium 2,000,000 Retained Earnings 6,000,000 3,000,000 On July 15, 2022, Parent issued 120,000 of its shares with a market value of P120 per share for the assets and liabilities of Sub, and Sub was dissolved. On the same day, Parent paid P50,000 for professional fees for arranging the combination and P100,000 for SEC registration of equity securities.

The shareholders' equities of Parent and Sub Companies at July 15, 2022 were as follows: Parent 15,000,000 Sub 8,000,000 4,000,000 Share Capital, P100 par Share Premium 2,000,000 Retained Earnings 6,000,000 3,000,000 On July 15, 2022, Parent issued 120,000 of its shares with a market value of P120 per share for the assets and liabilities of Sub, and Sub was dissolved. On the same day, Parent paid P50,000 for professional fees for arranging the combination and P100,000 for SEC registration of equity securities.

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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