TOOLAD Company agreed agreed to pay P850,000 cash and issue 50,000 shares of its P10 par (20 current fair value a share) ordinary share on September 30, 2021, to OVER Corporation for all the net assets of OVER except cash. In addition, TOOLAD agreed that if the fair market value of its ordinary share was not P20 a share or more on September 30, 2022, a sufficient number of additional ordinary shares would be issued to OVER to make the aggregate market value of its TOOLAD ordinary shareholdings equal to P1 million on that date. The statement of financial position of OVER on September 30, 2021 with related current fair values of assets and liabilities, is as follows: Cash Accounts Receivable, net Merchandise Inventory Prepaid Expenses Land Building Equipment Other Plant Assets Book Value 100,000 300,000 520,000 20,000 180,000 500,000 1,000,000 80,000 Fair Value 100,000 Current Liabilities 300,000 Long-term Debt 680,000 Ordinary Share, P5 par 20,000 Share Premium 180,000 Retained Earnings 650,000 1,250,000 100,000 Book Fair Value Value 700,000 700,000 500,000 480,000 600,000 400,000 500,000 Out-of-pocket costs of the business combination paid by TOOLAD on September 30, 2021, were as follows: Audit fees (SEC registration statement)- P30,000; Finder's Fee-P35,000; Legal Fees (business combination )-P15,000; Legal fees (SEC registration statement)-P20,000; Printing Cost (securities and SEC registration statement)-P25,000; SEC registration fee-P350. Assume that on September 30, 2022, the market value of TOOLAD Corporation's ordinary share was P16 a share. Compute the added number of shares to be issued.
TOOLAD Company agreed agreed to pay P850,000 cash and issue 50,000 shares of its P10 par (20 current fair value a share) ordinary share on September 30, 2021, to OVER Corporation for all the net assets of OVER except cash. In addition, TOOLAD agreed that if the fair market value of its ordinary share was not P20 a share or more on September 30, 2022, a sufficient number of additional ordinary shares would be issued to OVER to make the aggregate market value of its TOOLAD ordinary shareholdings equal to P1 million on that date. The
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