A. ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary) for SR 3,000,000 cash and 50,000 shares of Its own common stock (SR 1 par value), which was trading SR 30 per share in Saudi stock exchange at the acquisition date In January 1,2021 ?(1.0 mark) Required: Prepare the Journal entry to record the acquisition on the books of parent B. Q3. ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary) and ABC assumed and paid In cash the following direct costs of acquisition: Expense name Legal fees Accounting fees Travel expenses Legal fees (stock Issue) Accounting fees (stock Issue) SEC filing fees Total Amounts In SR 5,000 10,000 2,000 15,000 3,000 15,000 50,000 Required: Prepare the Journal entry to record the direct costs.

A. ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary) for SR 3,000,000 cash and 50,000 shares of Its own common stock (SR 1 par value), which was trading SR 30 per share in Saudi stock exchange at the acquisition date In January 1,2021 ?(1.0 mark) Required: Prepare the Journal entry to record the acquisition on the books of parent B. Q3. ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary) and ABC assumed and paid In cash the following direct costs of acquisition: Expense name Legal fees Accounting fees Travel expenses Legal fees (stock Issue) Accounting fees (stock Issue) SEC filing fees Total Amounts In SR 5,000 10,000 2,000 15,000 3,000 15,000 50,000 Required: Prepare the Journal entry to record the direct costs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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