On December 31, year 1, Saxe Corporation was acquired by Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe’s common stock. The stockholders’ equity section of each company’s balance sheet immediately before the combination was Accounts Poe Saxe Common stock $3,000,000 $1,500,000 Additional paidin capital 1,300,000 150,000 Retained earnings 2,500,000 850,000
On December 31, year 1, Saxe Corporation was acquired by Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe’s common stock. The
Accounts Poe Saxe
Common stock $3,000,000 $1,500,000
Additional paidin capital 1,300,000 150,000
Total $6,800,000 $2,500,000
In the December 31, year 1 consolidated balance sheet, additional paid in capital should be reported at
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