The journal entry to record the purchase of Agnes Co. would include a Group of answer choices credit to common stock for P1,500,000. debit to investment for P1,525,000 credit to additional paid-in capital for P1,100,000. debit to investment for P1,500,000 Goodwill associated with the purchase of Agnes Co. is ____.
Abby Co. acquired all of the outstanding stock of Agnes Co. by issuing 100,000 shares of its P1 par value stock. The shares have a fair value of P15 per share. Abby Co. also paid P25,000 in direct acquisition costs. Prior to the transaction, the companies have the following
|
Assets |
Abby Co. |
Agnes Co. |
|
Cash |
P 150,000 |
P 50,000 |
|
|
500,000 |
350,000 |
|
Inventory |
900,000 |
600,000 |
|
Property, plant, and equipment (net) |
1,850,000 |
900,000 |
|
Total assets |
P3,400,000 |
P1,900,000 |
|
|
|
|
|
Liabilities and |
|
|
|
Current liabilities |
P 300,000 |
P 100,000 |
|
Bonds payable |
1,000,000 |
600,000 |
|
Common stock (P1 par) |
300,000 |
100,000 |
|
Paid-in capital in excess of par |
800,000 |
900,000 |
|
|
1,000,000 |
200,000 |
|
Total liabilities and equity |
P3,400,000 |
P1,900,000 |
The fair values of Agnes Co.'s inventory and plant, property and equipment are P700,000 and P1,000,000, respectively.
The
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