On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by transferring cash of P500,000 and issuing 40,000 ordinary shares with par value of P50 (current fair value is P60). The following are expenses incurred and paid by Laida Corporation in connection with the business combination on the date of acquisition: Underwriting costs P10,000 Consultant’s fees 20,000 Newspaper publication fees 5,000 SEC registration fees 8,000 Stock exchange listing fees 5,000 Indirect acquisition costs 12,000 How much expense is charged to share premium?
On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by transferring cash of P500,000 and issuing 40,000 ordinary shares with par value of P50 (current fair value is P60). The following are expenses incurred and paid by Laida Corporation in connection with the business combination on the date of acquisition: Underwriting costs P10,000 Consultant’s fees 20,000 Newspaper publication fees 5,000 SEC registration fees 8,000 Stock exchange listing fees 5,000 Indirect acquisition costs 12,000 How much expense is charged to share premium?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 23E
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On August 31, 2020, Laida Corporation purchased all the net assets of Magtalas Corporation by transferring cash of P500,000 and issuing 40,000 ordinary shares with par value of P50 (current fair value is P60). The following are expenses incurred and paid by Laida Corporation in connection with the business combination on the date of acquisition:
Underwriting costs
P10,000
Consultant’s fees
20,000
Newspaper publication fees
5,000
SEC registration fees
8,000
Stock exchange listing fees
5,000
Indirect acquisition costs
12,000
How much expense is charged to share premium?
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