a.
Find the fair value of the consideration transferred in this combination.
b.
Explain the way in which the stock issuance costs appear in Company P’s post-combination financial statements.
c.
Explain the way in which Company P account for the fee paid to the investment bank.
d.
Explain the way in which the issuance of these shares affect the
e.
Explain the way in which the fair value of the consideration transferred in the combination allocated among the assets acquired and the liabilities assumed.
f.
Explain the effect of Company S’s revenues and expenses on consolidated totals.
g.
Explain the effect of Company S’s Common Stock and Additional Paid-In Capital balances on consolidated totals.
h.
Explain the way in which the consolidation of Company S’s assets and liabilities have been affected if Company P’s stock had been worth only $50 per share rather than $75.

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Chapter 2 Solutions
FUNDAMENTALS OF ADVANCED ACCOUNTING
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