Ugly Corp. issued 50,000 shares of P100 par ordinary share for all outstanding shares of Dolls Company in a business combination consummated in July 1, 2019. Ugly’s ordinary shares was selling at P102 per share at the time of the consummation of the combination. Dolls’ net asset on the date of acquisition has a carrying amount of P3,800,000. Out of pocket expenses of the combination were as follows: Legal fees P50,000 Finder’s fees 25,000 CPA audit fees 50,000 Printing of stock certificates 65,000 Determine the amount charged to expense:
Ugly Corp. issued 50,000 shares of P100 par ordinary share for all outstanding shares of Dolls Company in a business combination consummated in July 1, 2019. Ugly’s ordinary shares was selling at P102 per share at the time of the consummation of the combination. Dolls’ net asset on the date of acquisition has a carrying amount of P3,800,000. Out of pocket expenses of the combination were as follows: Legal fees P50,000 Finder’s fees 25,000 CPA audit fees 50,000 Printing of stock certificates 65,000 Determine the amount charged to expense:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ugly Corp. issued 50,000 shares of P100 par ordinary share for all outstanding shares of Dolls Company in a business combination consummated in July 1, 2019. Ugly’s ordinary shares was selling at P102 per share at the time of the consummation of the combination. Dolls’ net asset on the date of acquisition has a carrying amount of P3,800,000.
Out of pocket expenses of the combination were as follows:
Legal fees P50,000
Finder’s fees 25,000
CPA audit fees 50,000
Printing of stock certificates 65,000
Determine the amount charged to expense:
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