On December 31, 2022, Saxe Corp. was merged into Poe Corp. In the business combination, Poe issued 200,000 shares of its P10 par ordinary share, with a market price of P18 per share, for all of Saxe's common stock. The shareholders' equity section of each company's balance sheet immediately before the combination was shown below: Рое Saxe Ordinary share 1,500,000 3,000,000 Ordinary share premium 150,000 Retained earnings 1,300,000 2,500,000 850,000 6,800,000 2,500,000 Poe Corp. incurred the following costs related to the acquisition: Finder's fee - P20,000 and share issuance costs - P25,000. In the December 31, 2022 consolidated balance sheet, total equity should be reported at:

On December 31, 2022, Saxe Corp. was merged into Poe Corp. In the business combination, Poe issued 200,000 shares of its P10 par ordinary share, with a market price of P18 per share, for all of Saxe's common stock. The shareholders' equity section of each company's balance sheet immediately before the combination was shown below: Рое Saxe Ordinary share 1,500,000 3,000,000 Ordinary share premium 150,000 Retained earnings 1,300,000 2,500,000 850,000 6,800,000 2,500,000 Poe Corp. incurred the following costs related to the acquisition: Finder's fee - P20,000 and share issuance costs - P25,000. In the December 31, 2022 consolidated balance sheet, total equity should be reported at:

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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Question

10. On December 31, 2022, Saxe Corp. was
merged into Poe Corp. In the business
combination, Poe issued 200,000
shares of its P10 par ordinary share,
with a market price of P18 per share,
for all of Saxe's common stock. The
shareholders' equity section of each
company's balance sheet immediately
before the combination was shown
below:
Рое
Saxe
Ordinary share
1,500,000
3,000,000
Ordinary share premium
150,000
Retained earnings
1,300,000
2,500,000
850,000
6,800,000
2,500,000
Poe Corp. incurred the following costs
related to the acquisition:
Finder's fee - P20,000 and share
issuance costs - P25,000.
In the December 31, 2022 consolidated
balance sheet, total equity should be
reported at:

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