Question

Sloane, Inc., issues 25,000 shares of its own common stock in exchange for all of the outstand- ing shares of Benjamin Company. Benjamin will remain a separately incorporated operation. How does Sloane record the issuance of these sha

Answer 1

Answer:

Explanation:

Shares issued will be recorded at fair value as if the stock was sold and the money obtained spent to acquire the subsidiery.

The common stock account is recorded at the par value of these shares and additional amount in excess will be as additional paid-in capital