Gumiho Corporation acquired Forest Company through an exchange of common shares. All of Foresť's assets and liabilities were immediately transferred to Gumiho. Gumiho's common stock was trading at P20 per share at the time of exchange. Following selected information is also available. Before Acquisition P400,000 After Acquisition P500,000 Par value of shares outstanding Additional Paid-in Capital P700,000 P1,100,000 Based on the proceeding information, what is the number of shares was issued at the time of the exchange?
Gumiho Corporation acquired Forest Company through an exchange of common shares. All of Foresť's assets and liabilities were immediately transferred to Gumiho. Gumiho's common stock was trading at P20 per share at the time of exchange. Following selected information is also available. Before Acquisition P400,000 After Acquisition P500,000 Par value of shares outstanding Additional Paid-in Capital P700,000 P1,100,000 Based on the proceeding information, what is the number of shares was issued at the time of the exchange?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
a. 10,000
b. 35,000
c. 20,000
d. 25,000
![Gumiho Corporation acquired Forest Company through an exchange of common shares. All of Forest's assets
and liabilities were immediately transferred to Gumiho. Gumiho's common stock was trading at P20 per share at
the time of exchange. Following selected information is also available.
Before Acquisition
P400,000
After Acquisition
P500,000
Par value of shares outstanding
Additional Paid-in Capital
P700,000
P1,100,000
Based on the proceeding information, what is the number of shares was issued at the time of the exchange?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd38e29b2-5827-49ba-889d-d41e0be161b7%2F283eafcd-c7aa-41f3-a4b6-63dd9b9a89e2%2Fnonf8ur_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Gumiho Corporation acquired Forest Company through an exchange of common shares. All of Forest's assets
and liabilities were immediately transferred to Gumiho. Gumiho's common stock was trading at P20 per share at
the time of exchange. Following selected information is also available.
Before Acquisition
P400,000
After Acquisition
P500,000
Par value of shares outstanding
Additional Paid-in Capital
P700,000
P1,100,000
Based on the proceeding information, what is the number of shares was issued at the time of the exchange?
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