Question
Pendragon Co. issues 200000 shares of $5 par value common stock to acquire Squire Co. in a business combination. The market of Pendragon's common stock
Pendragon Co. issues 200000 shares of $5 par value common stock to acquire Squire Co. in a business combination. The market of Pendragon's common stock is $10. Legal and consulting fees incurred in relationship to the combination are $135000. Direct registration and issuance costs for the common stock are $135000. What should be recorded in Pendragon's APIC, considering both the business combination and its associated financing?
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
2nd Canadian Edition
0471413658, 978-0471413653
