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On December 31, 2007, XY Corporation was merged into AB Corporation. In the business combination, AB issued 172,000 shares of its P23 par common stock,

On December 31, 2007, XY Corporation was merged into AB Corporation. In the business combination, AB issued 172,000 shares of its P23 par common stock, with a market price of P47 per share. Fair market value agree with book values, additional cash payments made by AB Corp. in completing the acquisition were cost of maintaining a department, P23,500 and stock issuance cost, P33,800. The stockholders' equity section of each company's balance sheet immediately before the combination was:

AB XY
Common stock P8,450,000 P5,360,000
APIC 3,700,000 1,850,000
Retained earnings 4,080,000 3,670,000

  1. How much is the net increase in additional paid-in-capital to be recorded in the books of the surviving company as a result of the business combination?
  2. How much is the retained earnings immediately following the business combination?
  3. Assuming a goodwill of P118,000 was recorded in the books of the surviving company, as a result of the business combination, AB Corporation issued how many shares of stocks?

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