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Parent Company issued 50,000 shares of P100 par ordinary share for all outstanding shares of Subsidiary Company in a business combination consummated in July 1, 2020. Parent Company's ordinary shares was selling at P102 per share at the time of the consummation of the combination. Subsidiary Company's net asset on the date of acquisition has a carrying amount of P3,800,000. Out of pocket expenses of the combination were as follows: Legal fees 50,000 Finder's fees 25,000 CPA audit fees 50,000 Printing of stock certificates 65,000

Parent Company issued 50,000 shares of P100 par ordinary share for all outstanding shares of Subsidiary Company in a business combination consummated in July 1, 2020. Parent Company's ordinary shares was selling at P102 per share at the time of the consummation of the combination. Subsidiary Company's net asset on the date of acquisition has a carrying amount of P3,800,000. Out of pocket expenses of the combination were as follows: Legal fees 50,000 Finder's fees 25,000 CPA audit fees 50,000 Printing of stock certificates 65,000

FINANCIAL ACCOUNTING
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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Parent Company issued 50,000 shares of P100 par ordinary share for all outstanding shares of Subsidiary Company in a business combination consummated in July 1, 2020. Parent Company's ordinary shares was selling at P102 per share at the time of the consummation of the combination. Subsidiary Company's net asset on the date of acquisition has a carrying amount of P3,800,000. Out of pocket expenses of the combination were as follows: Legal fees 50,000 Finder's fees 25,000 CPA audit fees 50,000 Printing of stock certificates 65,000 Determine the amount charged to expense:
Transcribed Image Text:Parent Company issued 50,000 shares of P100 par ordinary share for all outstanding shares of Subsidiary Company in a business combination consummated in July 1, 2020. Parent Company's ordinary shares was selling at P102 per share at the time of the consummation of the combination. Subsidiary Company's net asset on the date of acquisition has a carrying amount of P3,800,000. Out of pocket expenses of the combination were as follows: Legal fees 50,000 Finder's fees 25,000 CPA audit fees 50,000 Printing of stock certificates 65,000 Determine the amount charged to expense:
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