P Company acquired all the outstanding shares of S Company by issuing 50,000 shares with a par value of P100 on July 1, 2021. P's ordinary shares were selling at P102 per share at the date of acquisition. On the same date, the net asset of S had a carrying value and fair value of P3,800,000 and P4,500,000 respectively. Out of pocket expenses of the business combination were as follows (see image below). How much is the amount charged to expense? Legal fees for contract of business combination Audit fees for SEC registration of share issue Brokerage fee Accountant fee for pre-acquisition audit Printing and registration of stock certificates Other direct costs of acquisition General administrative costs Listing fees in issuing new shares 41,200 50,000 22,500 35,000 10,000 16,800 25,000 12,100

P Company acquired all the outstanding shares of S Company by issuing 50,000 shares with a par value of P100 on July 1, 2021. P's ordinary shares were selling at P102 per share at the date of acquisition. On the same date, the net asset of S had a carrying value and fair value of P3,800,000 and P4,500,000 respectively. Out of pocket expenses of the business combination were as follows (see image below). How much is the amount charged to expense? Legal fees for contract of business combination Audit fees for SEC registration of share issue Brokerage fee Accountant fee for pre-acquisition audit Printing and registration of stock certificates Other direct costs of acquisition General administrative costs Listing fees in issuing new shares 41,200 50,000 22,500 35,000 10,000 16,800 25,000 12,100

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

P Company acquired all the outstanding shares of S Company by issuing 50,000 shares with a
par value of P100 on July 1, 2021. P's ordinary shares were selling at P102 per share at the date
of acquisition. On the same date, the net asset of S had a carrying value and fair value of
P3,800,000 and P4,500,000 respectively. Out of pocket expenses of the business combination
were as follows (see image below).
How much is the amount charged to expense?
Legal fees for contract of business combination
Audit fees for SEC registration of share issue
Brokerage fee
Accountant fee for pre-acquisition audit
Printing and registration of stock certificates
Other direct costs of acquisition
41,200
50,000
22,500
35,000
10,000
16,800
General administrative costs
25,000
12,100
Listing fees in issuing new shares

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