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How much is the net increase in additional paid-in capital to be recorded in the books of the surviving company as a result of the business combination? How much is the Retained Earnings after the merger?

How much is the net increase in additional paid-in capital to be recorded in the books of the surviving company as a result of the business combination? How much is the Retained Earnings after the merger?

FINANCIAL ACCOUNTING
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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Accounting subject. Thank you

Use the following information for the next 2 questions. On December 31, 2011, XY Corporation was merged into AB Corporation. In the business combination, AB issued 86,000 share of its P23 par common stock, with a market value price of P47 per share. Fair market value agrees with book values. Additional cash payments made by AB Corp. in completing the acquisition were cost of maintaining a department, P11,750 and stock issuance cost, P16,900. The stockholders' equity section of each company's balance sheet immediately before the combination was: AB XY P2,680,000 Common stock P4,225,000 APIC 1,850,000 925,000 Retained Earnings 2,040,000 1,835,000 How much is the net increase in additional paid-in capital to be recorded in the books of the surviving company as a result of the business combination? How much is the Retained Earnings after the merger?
Transcribed Image Text:Use the following information for the next 2 questions. On December 31, 2011, XY Corporation was merged into AB Corporation. In the business combination, AB issued 86,000 share of its P23 par common stock, with a market value price of P47 per share. Fair market value agrees with book values. Additional cash payments made by AB Corp. in completing the acquisition were cost of maintaining a department, P11,750 and stock issuance cost, P16,900. The stockholders' equity section of each company's balance sheet immediately before the combination was: AB XY P2,680,000 Common stock P4,225,000 APIC 1,850,000 925,000 Retained Earnings 2,040,000 1,835,000 How much is the net increase in additional paid-in capital to be recorded in the books of the surviving company as a result of the business combination? How much is the Retained Earnings after the merger?
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