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3 On 1/1/2019, Company (P) bought 90% of Company (S) shares through Company (P) issuance of 30,000 shares of its shares, the bar value is
3 On 1/1/2019, Company (P) bought 90% of Company (S) shares through Company (P) issuance of 30,000 shares of its shares, the bar value is one dinar, and the market value per share is 5 dinars each. Company S also paid 5,000 dinars in commissions and brokers' fees, and 4,000 dinars in fees for printing shares and its issuance. This resulted in a Parent company (P) and Subsidiary company (S) relationship. The budget of both companies was as follows at the date of purchase: Data Company P Company S Book Value Fair Value Cash 190000 25000 25000 Account receivable 130000 45000 40000 Inventories 180000 60000 62000 Equipment 100000 40000 45000 Cars 60000 10000 30000 Total assets 660000 180000 202000 Payables 210000 30000 22000 Capital 350000 120000 Paid-in-capital 75000 20000 Return earning 25000 10000 Total liabilities & 660000 180000 Equity Require: 1- Calculating the cost of buying X company shares 2- Calculating the value of merger goodwill 3- Record the necessary entries in the B company's books .Prepare the balance sheet at acquisition date -4
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