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What is the net increase or (net decrease) in the identifiable assets of SD Corporation? a. 13,700,500 b. 13,307,500 c. 13,957,500 d. 13,050,500

What is the net increase or (net decrease) in the identifiable assets of SD Corporation? a. 13,700,500 b. 13,307,500 c. 13,957,500 d. 13,050,500

FINANCIAL ACCOUNTING
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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What is the net increase or (net decrease) in the identifiable assets of SD Corporation?
a. 13,700,500
b. 13,307,500
c. 13,957,500
d. 13,050,500

1. The condensed Statements of Financial Position of GM and SR on January 1, 2016 are as follows: Total Assets Liabilities Ordinary Shares Share Premium Retained Earnings GM 10,250,000 Indirect Costs Finder's fee 2,775,000 3,100,000 1,250,000 3,125,000 SR Accounting and legal fees for SEC registration Printing costs of stock certificates 3,057,500 800,000 1,295,000 SD Corp. 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 P72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35/share and market value as of January 1, 2016 is P40/share. SD Corp. also incurred the following unpaid expenses: 100,000 862,500 GM 93,750 66,250 343,750 125,000 SR 101,250 35,000 362,500 93,750 SD's retained earnings account has a balance of P10,750,000 on January 1,2016 immediately before the acquisition. As a result of the merger:
Transcribed Image Text:1. The condensed Statements of Financial Position of GM and SR on January 1, 2016 are as follows: Total Assets Liabilities Ordinary Shares Share Premium Retained Earnings GM 10,250,000 Indirect Costs Finder's fee 2,775,000 3,100,000 1,250,000 3,125,000 SR Accounting and legal fees for SEC registration Printing costs of stock certificates 3,057,500 800,000 1,295,000 SD Corp. 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 P72,000 and by issuing 54,350 shares to SR. The par value of these shares is P35/share and market value as of January 1, 2016 is P40/share. SD Corp. also incurred the following unpaid expenses: 100,000 862,500 GM 93,750 66,250 343,750 125,000 SR 101,250 35,000 362,500 93,750 SD's retained earnings account has a balance of P10,750,000 on January 1,2016 immediately before the acquisition. As a result of the merger:
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