Question
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
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 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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