Man merged with San Corporation in a business combination in which San issued 30,000 shares of its $5 par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The journal entry for the merger includes: a. Credit to common stock $ 450,000. b. Credit to common stock $ 300,000. c. Credit to common stock $ 150,000. d. Credit to common stock $ 600,000.
Man merged with San Corporation in a business combination in which San issued 30,000 shares of its $5 par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The journal entry for the merger includes: a. Credit to common stock $ 450,000. b. Credit to common stock $ 300,000. c. Credit to common stock $ 150,000. d. Credit to common stock $ 600,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Man merged with San Corporation in a business combination in which San issued 30,000 shares of its $5 par (current fair value $20 a share) common stock to stockholders of Man in exchange for all their outstanding common stock. The journal entry for the merger includes:
a.
Credit to common stock $ 450,000.
b.
Credit to common stock $ 300,000.
c.
Credit to common stock $ 150,000.
d.
Credit to common stock $ 600,000.
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