1. How many shares were issued by the Parent?2. How much is the share issue costs paid by Parent?3. How much is the indirect costs paid by the Parent? Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2,2022. Partial balance sheet for the companies prior to the business combination and immediately following thecombination is provided:Parent65,00072,00033,000400,000Sub25,00020,00045,000140,000Consolidated60,00094,00088,000650,000CashAccounts receivableInventoryBuildingsGoodwill10,000?Total assets570,000240,000?Accounts payableBonds payableCommon stock, P2 parShare premiumRetained earningsTotal liabilities and equities25,00050,000250,000100,00075,000350,000160,000100,00025,00065,00020,000?105,00070,000100,000570,000240,000?The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid businesscombination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.

A consolidated statement of financial position is the balance sheet of parents combined with the…

Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2, 2022. Partial balance sheet for the companies prior to the business combination and immediately following the combination is provided: Sub 25,000 20,000 45,000 140,000 Consolidated 60,000 94,000 88,000 650,000 Parent 65,000 Cash Accounts receivable 72,000 33,000 Inventory Buildings Goodwill 400,000 10,000 ? Total assets 570,000 240,000 ? Accounts payable Bonds payable Common stock, P2 par Share premium Retained earnings Total liabilities and equities 50,000 250,000 100,000 25,000 100,000 25,000 75,000 350,000 160,000 65,000 20,000 105,000 70,000 100,000 570,000 240,000 ? The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid business combination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.

Parent Corporation acquired all the identifiable net assets of Sub Company by issuing ordinary shares on January 2, 2022. Partial balance sheet for the companies prior to the business combination and immediately following the combination is provided: Sub 25,000 20,000 45,000 140,000 Consolidated 60,000 94,000 88,000 650,000 Parent 65,000 Cash Accounts receivable 72,000 33,000 Inventory Buildings Goodwill 400,000 10,000 ? Total assets 570,000 240,000 ? Accounts payable Bonds payable Common stock, P2 par Share premium Retained earnings Total liabilities and equities 50,000 250,000 100,000 25,000 100,000 25,000 75,000 350,000 160,000 65,000 20,000 105,000 70,000 100,000 570,000 240,000 ? The only consideration transferred is the issuance of shares with fair value of P8. Parent also paid business combination expenses, share issue costs are twice the amount of indirect costs. Parent and Sub are SMES.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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