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8. Iye Inc., Kaye Inc., and Eaye Inc. agreed to a business combination that meets all the requirements for purchase of interests. Their condensed balance
8. Iye Inc., Kaye Inc., and Eaye Inc. agreed to a business combination that meets all the requirements for purchase of interests. Their condensed balance sheets before combination show: Iye Kaye Eaye Assets P7.000.000 P875,000 P9.625.000 Liabilities P4,987,500 P306,250 P2,625,000 Capital stock, par P100 2,625,000 437,500 1,750,000 Additional paid in capital 218,750 700,000 Retained earnings (deficit) (612.500) (87,500) 4.550,000 P7,000,000 P875.000 P2.625.000 It was agreed that Iye Inc. will be the continuing entity and shall issue 4,375 shares to Kaye and 52,500 shares to Eaye. To what extent will the stockholders equity of Iye increase after the combination
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