Question
Separate balance sheets for P Company and S Company December 31, 2019 are as follows: Cash Other current assets Land Buildings Current liabilities Common
Separate balance sheets for P Company and S Company December 31, 2019 are as follows: Cash Other current assets Land Buildings Current liabilities Common stock, P 10 par Additional paid-in capital Retained earnings p COMPANY P 150,000 150,000 300,000 400,000 200,000 600,000 60,000 140,000 S COMPANY 20,000 80,000 50,000 150,000 50,000 100,000 75,000 75,000 P Company issued 20,000 shares Of its own common stock with a market value Of P250,OOO on January 1, 2020 in exchange for 80% of S Company's outstanding stock. All-of the excess differential is attributable 25% to land and the balance to the buildings, hence there is no goodwill. The following out Of pocket costs were paid by P Company. Finder's fees 25,000 Fees paid to company accountants Cost to register and issue stocks Cost of printing the stock certificates Legal fees paid Direct acquisition cost Indirect cost iTotal amount of land on the consolidated balance sheet P 375,000 P 350,000 P 365,626 P 300,000 30,000 25,000 20,000 10,000
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