Presented below is a condensed balance sheet for Tiger Company as of December 31, 2020: Book Value Market Value Current Assets 200,000 225,000 Plant Assets 300,000 400,000 Total 500,000 625,000 Liabilities 150,000 125,000 Capital Stock, Par 50,000 Additional Paid-in Capital 100,000 Retained Earnings 200,000 Total 500,000 On January 1, 2020, Acquisition, Inc. issues 10,000 shares of its P10 par value stock with market value of P50 per share for the net assets of Tiger Company. 1. What is the total stockholder’s equity of Acquisition, Inc. after the acquisition? 2. The acquisition should be recorded by Acquisition Inc. with the following entry assuming stock issuance costs amounting to P405,000 was incurred:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Presented below is a condensed balance sheet for Tiger Company as of December 31, 2020:

Book Value Market Value
Current Assets 200,000 225,000
Plant Assets 300,000 400,000
Total 500,000 625,000
Liabilities 150,000 125,000
Capital Stock, Par 50,000
Additional Paid-in Capital 100,000
Retained Earnings 200,000
Total 500,000
On January 1, 2020, Acquisition, Inc. issues 10,000 shares of its P10 par value stock with market
value of P50 per share for the net assets of Tiger Company.
1. What is the total stockholder’s equity of Acquisition, Inc. after the acquisition?
2. The acquisition should be recorded by Acquisition Inc. with the following entry assuming stock
issuance costs amounting to P405,000 was incurred:

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