Fundamentals of Advanced Accounting
Fundamentals of Advanced Accounting
7th Edition
ISBN: 9781259722639
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Chapter 2, Problem 32P

a.

To determine

Find the fair value of the consideration transferred in this combination.

b.

To determine

Explain the way in which the stock issuance costs appear in Company P’s post-combination financial statements.

c.

To determine

Explain the way in which Company P account for the fee paid to the investment bank.

d.

To determine

Explain the way in which the issuance of these shares affect the stockholders’ equity accounts of Company P.

e.

To determine

Explain the way in which the fair value of the consideration transferred in the combination allocated among the assets acquired and the liabilities assumed.

f.

To determine

Explain the effect of Company S’s revenues and expenses on consolidated totals.

g.

To determine

Explain the effect of Company S’s Common Stock and Additional Paid-In Capital balances on consolidated totals.

h.

To determine

Explain the way in which the consolidation of Company S’s assets and liabilities have been affected if Company P’s stock had been worth only $50 per share rather than $75.

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