Pendragon Co. issues 200,000 shares of $5 par value common stock to acquire Squire Co. in a business combination. The market value of Pendragon’s common stock is $12. Legal and consulting fees incurred in relationship to the combination are $110,000. Direct registration and issuance costs for the common stock are $35,000. What should be recorded in Pendragon’s additional paid-in capital (APIC) for this business combination?\\nSelect one:\\na. $1,545,000\\nb. $1,400,000\\nc. $1,365,000\\nd. $1,255,000
Pendragon Co. issues 200,000 shares of $5 par value common stock to acquire Squire Co. in a business combination. The market value of Pendragon’s common stock is $12. Legal and consulting fees incurred in relationship to the combination are $110,000. Direct registration and issuance costs for the common stock are $35,000. What should be recorded in Pendragon’s additional paid-in capital (APIC) for this business combination?\\nSelect one:\\na. $1,545,000\\nb. $1,400,000\\nc. $1,365,000\\nd. $1,255,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pendragon Co. issues 200,000 shares of $5 par value common stock to acquire Squire Co. in a business combination. The market value of Pendragon’s common stock is $12. Legal and consulting fees incurred in relationship to the combination are $110,000. Direct registration and issuance costs for the common stock are $35,000. What should be recorded in Pendragon’s additional paid-in capital (APIC) for this business combination?\\nSelect one:\\na. $1,545,000\\nb. $1,400,000\\nc. $1,365,000\\nd. $1,255,000
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