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Iye Inc., Kaye Inc., and Eaye Inc. agreed to a business combination that meets all the requirements for purchase of interests. Their condensed balance

 

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: Assets Liabilities Capital stock, par P100 Additional paid in capital Retained earnings (deficit) Iye PZ,000,000 Kaye P875.000 P4,987,500 P306,250 2,625,000 437,500 218,750 (612,500) (87,500) P7,000,000 P875,000 Eaye men P9.625.000 P2,625,000 1,750,000 700,000 4,550,000 P9,625,000 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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