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 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 certificate 3,000 Costs to issue and register the stocks 30,000 The total assets of Gold Company after the merger will be? A. 1,438,000 B. 1,483,000 C. 1,338,000 D. 1,383,000 The share premium and retained earnings of Gold Company after the merger will be A. 197,500; 265,000 B. 197,500; 262,500 C. 272,500; 280,000 D. 200,000; 262,500
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
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
Total Liabilities and Equity 875,000 635,000
The appraised values of 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 certificate 3,000
Costs to issue and register the stocks 30,000
The total assets of Gold Company after the merger will be?
A. 1,438,000
B. 1,483,000
C. 1,338,000
D. 1,383,000
The share premium and retained earnings of Gold Company after the merger will be
A. 197,500; 265,000
B. 197,500; 262,500
C. 272,500; 280,000
D. 200,000; 262,500
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