Prob 1: On January 1, 2018, WONG NOODLES Corporation acquired the net assets of Natasha, Inc., by issuing 600,000 shares of its P10 par value common stock. Subsequently, Natasha was liquidated and its assets and liabilities merged into WONG NOODLES Corporation. WONG NOODLES’ stock was selling for P50 per share on January 1, 2018. The amount of goodwill recorded by WONG NOODLES in connection with the combination was P6,120,000. WONG NOODLES incurred P300,000 of legal and broker’s fees associated with the combination and P30,000 of stock issuance costs. What is the (1) fair value of Natasha’s net assets and (2) the amount of the increase in WONG NOODLES’ stockholders equity as a result of the combination? (1) 23,880,000; (2) 29,970,000 (1) 24,180,000; (2) 29,970,000 (1) 23,880,000; (2) 30,000,000 (1) 24,180,000; (2) 30,000,000

Prob 1: On January 1, 2018, WONG NOODLES Corporation acquired the net assets of Natasha, Inc., by issuing 600,000 shares of its P10 par value common stock. Subsequently, Natasha was liquidated and its assets and liabilities merged into WONG NOODLES Corporation. WONG NOODLES’ stock was selling for P50 per share on January 1, 2018. The amount of goodwill recorded by WONG NOODLES in connection with the combination was P6,120,000. WONG NOODLES incurred P300,000 of legal and broker’s fees associated with the combination and P30,000 of stock issuance costs. What is the (1) fair value of Natasha’s net assets and (2) the amount of the increase in WONG NOODLES’ stockholders equity as a result of the combination? (1) 23,880,000; (2) 29,970,000 (1) 24,180,000; (2) 29,970,000 (1) 23,880,000; (2) 30,000,000 (1) 24,180,000; (2) 30,000,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 35P

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