Question
3. ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary) and ABC assumed and paid in cash the following direct
3. ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary) and ABC assumed and paid in cash the following direct costs of acquisition: ?(1.0 mark)
| Expense name | Amounts in SR |
| Legal fees | 5,000 |
| Accounting fees | 10,000 |
| Travel expenses | 2,000 |
| Legal fees (stock issue) | 15,000 |
| Accounting fees (stock issue) | 3,000 |
| SEC filing fees | 15,000 |
| Total | 50,000 |
Required: Prepare the journal entry to record the direct costs.
Answer:
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Financial accounting
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
8th Edition
9780135114933, 136108865, 978-0136108863
