Pete Corporation and Sol Company agreed to combine their businesses, with Pete Corporation as the surviving entity. Pete will issue 48,000 shares of its capital stock, with a par value of P100 per share, and a fair market value of P175 per share. Pete incurred the following additional acquisition cost: Professional Fees P120,000 Indirect acquisition costs 80,000 Cost to Register and issue stock 50,000 Before combination, their respective balance sheets showed stock holders equity account as follow: Pete Sol Capital stock P7,200,000 P3,600,000 Additional paid in capital 3,120,000 360,000 Retained earnings 6,000,000 2,040,000 Determine the amount of consolidated shareholders' equity immediately after business combination.

Pete Corporation and Sol Company agreed to combine their businesses, with Pete Corporation as the surviving entity. Pete will issue 48,000 shares of its capital stock, with a par value of P100 per share, and a fair market value of P175 per share. Pete incurred the following additional acquisition cost: Professional Fees P120,000 Indirect acquisition costs 80,000 Cost to Register and issue stock 50,000 Before combination, their respective balance sheets showed stock holders equity account as follow: Pete Sol Capital stock P7,200,000 P3,600,000 Additional paid in capital 3,120,000 360,000 Retained earnings 6,000,000 2,040,000 Determine the amount of consolidated shareholders' equity immediately after business combination.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 22PC

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