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answer fast thanks On July 1, 2016 the balance sheet of Com Co and Pol Co are as follows: Com Co. Pol Co Assets 4,000,000

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On July 1, 2016 the balance sheet of Com Co and Pol Co are as follows:

Com Co. Pol Co

Assets 4,000,000 2,500,000

Liabilities 1,500,000 800,000

Capital stock, no par 2,000,000

Capital stock, P100 par 1,000,000

Additional paid in capital 700,000 300,000

Retained earnings. (200,000) 400,000

Com co on this date agreed to acquire all the assets and assume all liabilities of Pol Co in exchange for shares of

stock that it will issue. The stock of Com Co is selling in the market at p50 per share. The assets of Pol Co are to be

appraised, and Com Co is to issue shares of its stock with a market value equal to that of the net assets ransferred by

Pol Co. the value of the assets of Pol Co per appraisal increased by P300,000

i. On the assumption that the acquisition method was applied, the total liabilities and stockholder's

equity of Com Co reflecting the combination is

a. 6,800,000

b. 6,500,000

c. 6,200,000

d. 6,000,000

ii. The capital stock reflecting the combination under the acquisition method is:

a. 3,000,000

b. 3,300,000

c. 3,500,000

d. 4,000,000

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