The following summarized balance sheets were prepared for the Gold Company and Mythic Corporation. Gold Mythic Current assets 350,000 185,000 Land 80,000 25,000 Building, net 250,000 325,000 Goodwill 195,000 100,000 Total Assets 875,000 635,000 Accounts payable 115,000 85,000 Bonds payable 170,000 150,000 Common stocks, P10 par 150,000 75,000 APIC 200,000 40,000 Retained Earnings 240,000 285,000 Total Liabilities and Equity 875,000 635,000 The appraised values of the Mythic Corporation’s land and buildings are P20,000 and P258,000, respectively. Gold issues 15,250 shares of common stocks with a fair value of P12 each. Gold also pays out-of-pocket costs for the following: Broker's fee 10,000 Professional fees to valuers 3,000 Legal fees 2,000 Indirect acquisition costs 5,000 Printing cost of stock certificates 3,000 Costs to issue and register the stocks 30,000 The total assets of Gold Company after the merger will be Group of answer choices 1,383,000 1,338,000 1,483,000 1,438,000
The following summarized balance sheets were prepared for the Gold Company and Mythic Corporation.
|
|
Gold |
Mythic |
|
Current assets |
350,000 |
185,000 |
|
Land |
80,000 |
25,000 |
|
Building, net |
250,000 |
325,000 |
|
|
195,000 |
100,000 |
|
Total Assets |
875,000 |
635,000 |
|
|
|
|
|
Accounts payable |
115,000 |
85,000 |
|
Bonds payable |
170,000 |
150,000 |
|
Common stocks, P10 par |
150,000 |
75,000 |
|
APIC |
200,000 |
40,000 |
|
|
240,000 |
285,000 |
|
Total Liabilities and Equity |
875,000 |
635,000 |
The appraised values of the Mythic Corporation’s land and buildings are P20,000 and P258,000, respectively. Gold issues 15,250 shares of common stocks with a fair value of P12 each. Gold also pays out-of-pocket costs for the following:
|
Broker's fee |
10,000 |
|
Professional fees to valuers |
3,000 |
|
Legal fees |
2,000 |
|
Indirect acquisition costs |
5,000 |
|
Printing cost of stock certificates |
3,000 |
|
Costs to issue and register the stocks |
30,000 |
The total assets of Gold Company after the merger will be
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