The following summarized balance sheets were prepared for the Gold Company and Mythic Corporation.     Gold Mythic Current assets 350,000 185,000 Land 80,000 25,000 Building, net 250,000 325,000 Goodwill 195,000 100,000 Total Assets 875,000 635,000       Accounts payable 115,000 85,000 Bonds payable 170,000 150,000 Common stocks, P10 par 150,000 75,000 APIC 200,000 40,000 Retained Earnings 240,000 285,000 Total Liabilities and Equity 875,000 635,000   The appraised values of the Mythic Corporation’s land and buildings are P20,000 and P258,000, respectively. Gold issues 15,250 shares of common stocks with a fair value of P12 each. Gold also pays out-of-pocket costs for the following:   Broker's fee                                                           10,000 Professional fees to valuers                                     3,000 Legal fees                                                                     2,000 Indirect acquisition costs                                           5,000 Printing cost of stock certificates                             3,000 Costs to issue and register the stocks                  30,000   The share premium and retained earnings of Gold Company after the merger will be Group of answer choices 197,500; 265,000 200,000; 262,500 272,500; 280,000 197,500; 262,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following summarized balance sheets were prepared for the Gold Company and Mythic Corporation.

 

 

Gold

Mythic

Current assets

350,000

185,000

Land

80,000

25,000

Building, net

250,000

325,000

Goodwill

195,000

100,000

Total Assets

875,000

635,000

 

 

 

Accounts payable

115,000

85,000

Bonds payable

170,000

150,000

Common stocks, P10 par

150,000

75,000

APIC

200,000

40,000

Retained Earnings

240,000

285,000

Total Liabilities and Equity

875,000

635,000

 

The appraised values of the Mythic Corporation’s land and buildings are P20,000 and P258,000, respectively. Gold issues 15,250 shares of common stocks with a fair value of P12 each. Gold also pays out-of-pocket costs for the following:

 

Broker's fee                                                          

10,000

Professional fees to valuers                                    

3,000

Legal fees                                                                    

2,000

Indirect acquisition costs                                          

5,000

Printing cost of stock certificates                            

3,000

Costs to issue and register the stocks                 

30,000

 

The share premium and retained earnings of Gold Company after the merger will be

Group of answer choices
197,500; 265,000
200,000; 262,500
272,500; 280,000
197,500; 262,500
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