Parent Company owns 100% of ABC Company's 100,000 shares. ABC issues 25,000 new shares to the public for $6 cash per share and Parent Co. acquires none of the shares. The book value of ABC's net assets before the stock issuance was 432,645. AAP associated with the acquisition of ABC's net assets, updated for AAP amortization to the date of the stock issuance, was 137,931 prior to the stock issuance. What is the amount of the increase (for a decrease use a negative sign) in Parent's APIC on the date of the stock issuance?

Parent Company owns 100% of ABC Company's 100,000 shares. ABC issues 25,000 new shares to the public for $6 cash per share and Parent Co. acquires none of the shares. The book value of ABC's net assets before the stock issuance was 432,645. AAP associated with the acquisition of ABC's net assets, updated for AAP amortization to the date of the stock issuance, was 137,931 prior to the stock issuance. What is the amount of the increase (for a decrease use a negative sign) in Parent's APIC on the date of the stock issuance?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

3) What are the functions of FASB, GASB and FASAB? Explain
Define Profi t and loss (P&L) statement
What is the difference between a Form 10–K and a Form 10–Q?
What is the solution to 0.5x - 2 < 5.5? O A. X < 7 о В. х< 9 С. X < 13 D. x < 15
remain dwlse
what is a P&L
b. Discuss the effect on c and p, when there is an increase in: i. So ii. iii. O K
Req1-Req2 were incorrect. Can you try the problem again ?
Q5 Distinguish between "report" and "certificate"
Calculate: (1+)" m m where m=132, and r=0.102
Any update on D,E,F