SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and byissuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350shares to SR. The par value of these shares is P35 per share and market value of P40 per shareas of January 01, 2018. SD's retained earnings has a balance of P 10,750,000 on January 01,2018 immediately before the acquisition.The following are the condensed balance sheet of GM and SR on January 01, 2018:GMP 10,250,000P 2,775,000P 3,100,000P 1,250,000P 3,125,000SRTotal AssetsLiabilitiesOrdinary SharesShare premiumRetained earningsP 3,057,500P 800,000P 1,295,000P 100,000P 862,500SD Corp also incurred the following unpaid expenses:SR|Indirect costFinder's feeAccounting and legal fees for SEC registration|Printing cost of stock certificatesGMP 93,750P 66,250P 343,750P 125,000P 101,250P 35,000P 362,500P 93,750 what is the Retained Earnings after the merger?O 10,465,250O 10,350,500O 10,269,250O 10,280,750

A merger refers to the business arrangement under which two existing companies form the new company.…

SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD's retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.

SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 198,500 shares to GM. Paying cash in the amount of P 72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35 per share and market value of P40 per share as of January 01, 2018. SD's retained earnings has a balance of P 10,750,000 on January 01, 2018 immediately before the acquisition.

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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