Question
Dunyain Company acquired Allsap Corporation on January 1, 20X1, through an exchange of common shares. All of Allsap's assets and liabilities were immediately transferred to
Dunyain Company acquired Allsap Corporation on January 1, 20X1, through an exchange of common shares. All of Allsap's assets and liabilities were immediately transferred to Dunyain, which reported total par value of shares outstanding of $219,200 and $375,800 and additional paid-in capital of $371,400 and $649,800 immediately before and after the business combination, respectively. |
Required: |
a. | Assuming that Dunyain's common stock had a market value of $25 per share at the time of exchange, what number of shares was issued? |
b. | What is the par value per share of Dunyain's common stock? |
c. | Assuming that Allsap's identifiable assets had a fair value of $476,300 and its liabilities had a fair value of $120,300, what amount of goodwill did Dunyain record at the time of the business combination? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started