Wagas Corporation and Tapat Company merged as of January 1, 2014. To effect the merger, Wagas paid finder's fees of P40,000, legal fees of P13,000, audit fees related to the stock issuance of P10,000, stock registration fees of P5,000, and stock listing application fees of P4,000. Based on the preceding information: P72,000 of stock issue costs are treated as goodwill. P19,000 of stock issue costs are treated as a reduction in share premium. P19,000 of stock issue costs are expensed. P72,000 of stock issue costs are expensed.
Wagas Corporation and Tapat Company merged as of January 1, 2014. To effect the merger, Wagas paid finder's fees of P40,000, legal fees of P13,000, audit fees related to the stock issuance of P10,000, stock registration fees of P5,000, and stock listing application fees of P4,000. Based on the preceding information: P72,000 of stock issue costs are treated as goodwill. P19,000 of stock issue costs are treated as a reduction in share premium. P19,000 of stock issue costs are expensed. P72,000 of stock issue costs are expensed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wagas Corporation and Tapat Company merged as of January 1, 2014. To effect the merger, Wagas paid finder's fees of P40,000, legal fees of P13,000, audit fees related to the stock issuance of P10,000, stock registration fees of P5,000, and stock listing application fees of P4,000.
Based on the preceding information:
P72,000 of stock issue costs are treated as goodwill .
P19,000 of stock issue costs are treated as a reduction in share premium.
P19,000 of stock issue costs are expensed.
P72,000 of stock issue costs are expensed.
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