1. On June 2,2016, Milkita Corporation issued 50,000 of its unissued shares with a market value of 103 per share for the assets and liabilities of Keanu Company. On the same day Milkita Corporation paid 100,000 for legal fees, documentary stamp tax of 20,000 and 190,000 for SEC registration fees of equity securities. Shareholder's equity would include?

2. Red Company issued its common stock for the net assets of Blue Company in a business combination treated as acquisition. Red's common stock issued was worth 1,500,000. At the date of combination, Red's net assets had a book value of 1,600,000 and a fair value of 1,800,000. Blue's net assets had a book value of 700,000 and a fair value of 850,000. Immediately following the combination, the net assets of the combined company should have been reported at what amount?

3. Mata Inc. purchased all of the net assets of Torralba Company on February 1,2015 by issuing 8,000 shares of its 20 par common stock. At the time, the stock was selling for 40 per share. Direct costs associated with consummating the combination totalled 5,000. Under IFRS 3, what total amount should the net assets acquired be recorded by Mata Inc. Assuming the contingent consideration of 7,000 is determined?

4. Carreh acquires assets and liabilities of Sam Company on January 1,2016. To obtain these shares, Carreh pays $400,000 and issues 10,000 shares of $20 par value common stock on this date. Carreh 's stock had a fair value of $36 per share on that date. Carreh also pays $15,000 to a local investment firm for arranging the transaction. An additional $10,000 was paid by Carreh in stock issuance costs. The book values for both Carreh and Sam as of January 1,2016 follow. The fair value of each of Carreh and Sam accounts is also included. In addition, Sam holds a fully amortized trademark that still retains $40,000 value. The figures below are in thousands. Any related questions also in thousands.

Sam Company Carreh, Inc. Book Value Fair Value

Cash $900 $80 $80 Receivables 480 180 160

Inventory 660 260 300 Land 300 120 130

Buildings(net) 1,200 220 280

Equipment(net) 360 100 75

Accounts Payable 480 60 60

Long-term liabilities 1,140 340 300

Common Stock 1,200 80

Retained earnings 1,080 480

Assuming the combination is accounted for as an acquisition, immediately after the acquisition, in the balance sheet of Carreh: What amount will be reported for goodwill?

5. The CCC Company acquired the net assets of the VVV Company on January 1, 2015, and made the following entry to record the purchase:

Current Assets100,000

Equipment 150,000

Land 50,000

Buildings 300,000

Goodwill 100,000

Liabilities 80,000

Common stock,$1 par 100.000

Paid in capital in excess at par 520,000

Assuming that additional shares on January 1, 2017 would be issued on that date to compensate for any fall in the value at CCC common stock below $16 per share. The settlement would be to cure the deficiency by issuing added shares based on their fair value on January 1,2017. The fair price of the shares on January 1, 2017 was $10. What is the additional number of shares issued on January 1, 2017 to compensate for any fall in the value at the stock?

6. On September 1, 2014, Rich Company established two branches: Mall and Pall branches. The home office transferred $80,000 worth of cash and $350,000 worth of inventory to its Mall branch and instructed Naga to transfer 3/4 of the goods and cash received to Pall. In addition, on November 1, 2014, shipments from home office were received by Mall amounting to $125,000 and the branch paid freight costs amounting to $6,500. 3/5 of the said shipments were sold to outsiders. On December 1, 2014, Mall transferred half of the remaining November shipments from the home office to Pall, with Pall branch paying freight costs of $2,500. Had the merchandise been shipped from the home office to Pall branch, only $1,900 worth of freight would have been incurred. How much is the balance of the Pall branch account in the home office books?

7. Mita Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of 150,000. Immediately prior to the acquisition. Mita reported total assets of 500,000, liabilities of 280,000, and stockholders' equity at 220,000. At that date, Standard Video reported total assets at 400,000, liabilities of 250,000., and stockholders' equity of 150,000. Included in Standard's liabilities was an account payable to Mita in the amount at 20,000 which Mita included in its accounts receivable. Based on the preceding information: (1) what amount of total assets did Mita report in its balance sheet immediately after the acquisition: (2) what amount of assets was reported in the consolidated balance sheet immediately after the acquisition?

8. On June 2,2016, Milkita Corporation issued 50,000 of its unissued shares with a market value of 103 per share for the assets and liabilities of Keanu Company. On the same day Milkita Corporation paid 100,000 for legal fees, documentary stamp tax of 20,000 and 190,000 for SEC registration fees of equity securities. Shareholder's equity would include?

9. Red Company issued its common stock for the net assets of Blue Company in a business combination treated as acquisition. Red's common stock issued was worth 1,500,000. At the date of combination, Red's net assets had a book value of 1,600,000 and a fair value of 1,800,000. Blue's net assets had a book value of 700,000 and a fair value of 850,000. Immediately following the combination, the net assets of the combined company should have been reported at what amount?

10. Mata Inc. purchased all of the net assets of Torralba Company on February 1,2015 by issuing 8,000 shares of its 20 par common stock. At the time, the stock was selling for 40 per share. Direct costs associated with consummating the combination totalled 5,000. Under IFRS 3, what total amount should the net assets acquired be recorded by Mata Inc. Assuming the contingent consideration of 7,000 is determined?