On January 1, 2022, Dumbledore Company issued 10,000 shares of its P10 par value shares with a market value of P50 per share for the net assets of Julien Corporation. Cost to register and issue the shares amounted to P50,000. The condensed statement of financial position of Julien Corporation as of December 31, 2021 is shown below: Book Values Fair Values Current assets 200,000 225,000 Plant assets 300,000 400,000 Total assets 500,000 Liabilities 150,000 Ordinary share capital, P10 par 50,000 Share premium 100,000 Accumulated profits (losses) 200,000 Total Equity 500,000 How much is the net increase in the shareholders’ equity of Dumbledore Company as a result of the business combination?
On January 1, 2022, Dumbledore Company issued 10,000 shares of its P10 par value shares with a market value of P50 per share for the net assets of Julien Corporation. Cost to register and issue the shares amounted to P50,000. The condensed
Book Values Fair Values
Current assets 200,000 225,000
Plant assets 300,000 400,000
Total assets 500,000
Liabilities 150,000
Ordinary share capital, P10 par 50,000
Share premium 100,000
Total Equity 500,000
How much is the net increase in the shareholders’ equity of Dumbledore Company as a result of the business combination?
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