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On Dec 31,2018 (A) paid JD50000 and issued 25000 JD1 par value common stock , fair value JD1.5 for 90% of the net assets of
On Dec 31,2018 (A) paid JD50000 and issued 25000 JD1 par value common stock , fair value JD1.5 for 90% of the net assets of (B). Out-of-pockets costs of the business combination paid by (A) are consisted of legal and accounting fees JD5000 and JD3000 for issuance common stocks. Stockholders equity of (A) and (B) at the date of acquisition are as follows: Explanations (A) (B) Common stock 40000 30000 Paid-in-capital 20000 13000 Retained earnings 15000 25000 The value of carrying assets and liabilities of (B) at purchase date equal to their fair values except for inventory that decreased by 5000 and payables increased by 2000. 1. The balance of paid-in-capital subsequent to the date of the acquisition: 2.The balance of retained earning subsequent to the date of the acquisition
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