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On December 31, 2020, Combinor Company issued 300,000 shares of its no par value or stated value common stock (current fair value $6 a share)
On December 31, 2020, Combinor Company issued 300,000 shares of its no par value or stated value common stock (current fair value $6 a share) in exchange for all the outstanding common stock of Combinee Company in a statutory merger. The journal entry for the merger includes: a. Debit to investment in combinee company common stock $1,500,000. b. Debit to investment in combinee company common stock $2,100,000. c. Debit to investment in combinee company common stock $3,000,000. d. Debit to investment in combinee company common stock $1,800,000. In business combination, the combiner paid direct out-of-pocket costs of the business combination, $60,000, and costs of registering and issuing its common stock, $80,000. The journal entry for payment of the above costs includes: a. Debit to investment in common stock of combine $60,000. b. Credit to investment in common stock of combine $60,000. c. Debit to investment in common stock of combine $140,000. d. Debit to investment in common stock of combine $80,000.
On December 31, 2020, Combinor Company issued 300,000 shares of its no par value or stated value common stock (current fair value $6 a share) in exchange for all the outstanding common stock of Combinee Company in a statutory merger. The journal entry for the merger includes:
a.
Debit to investment in combinee company common stock $1,500,000.
b.
Debit to investment in combinee company common stock $2,100,000.
c.
Debit to investment in combinee company common stock $3,000,000.
d.
Debit to investment in combinee company common stock $1,800,000.
In business combination, the combiner paid direct out-of-pocket costs of the business combination, $60,000, and costs of registering and issuing its common stock, $80,000. The journal entry for payment of the above costs includes:
a.
Debit to investment in common stock of combine $60,000.
b.
Credit to investment in common stock of combine $60,000.
c.
Debit to investment in common stock of combine $140,000.
d.
Debit to investment in common stock of combine $80,000.
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