Question
On March 10, PT Pratama Tbk issued 1,000,000 of its common shares with a par value of $20 to acquire PT Sumber Tbk. The
On March 10, PT Pratama Tbk issued 1,000,000 of its common shares with a par value of $20 to acquire PT Sumber Tbk. The fair value of the stock at the time was $40 per share. PT Pratama Tbk incurred costs of $200,000 for regis- tering and issuing the securities, $50,000 for printing the shares, $100,000 in accountants for the business combina- tion, $20,000 for delivering the securities, and $30,000 for transferring the assets of PT Sumber Tbk. REQUIRED: Calculate the additional paid-in capital that should be recorded by PT Pratama Tbk from the transaction.
Step by Step Solution
3.39 Rating (161 Votes )
There are 3 Steps involved in it
Step: 1
Answer Step by Step Explanation Step 1 Additional paidin capital APIC is the fair value of share cap...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Global Investments
Authors: Bruno Solnik, Dennis McLeavey
6th edition
321527704, 978-0321527707
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App