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nevsk [136]
3 years ago
14

On December 31 of the current year, Sam Company was merged into Paul Company. In carrying out the business combination, Paul Com

pany issued 60,000 shares of its $10 par value common stock, with a fair value of $15 per share, for all of Sam Company's outstanding common stock. The stockholders' equity section of the two companies immediately before the business combination was:
Business
1 answer:
Lisa [10]3 years ago
6 0

Complete Question:

On December 31 of the current year, Sam Company was merged into Paul Company. In carrying out the business combination, Paul Company issued 60,000 shares of its $10 par value common stock, with a fair value of $15 per share, for all of Sam Company's outstanding common stock. The stockholders' equity section of the two companies immediately before the business combination was:

Paul Sam

Common Stock $500,000 $400,000

Additional Paid-in Capital 200,000 100,000

Retained Earnings 300,000 200,000

Assume that the transaction is accounted for using the acquisition method. In the consolidated balance sheet at the end of the next year, the Additional Paid-In Capital account should be reported at

A) $400,000.

B) $300,000.

C) $500,000.

D) $200,000.

Answer:

Option C. $500,000

Explanation:

The reason is that the new additional Paid In Capital will be calculated by taking the stock issuing company's Addition Paid-In Capital and the additional paid in capital arising from stock issue, which means that:

Addition Paid-In Capital after merger = Addition Paid-In Capital of Paul Company + Addition Paid-In Capital arising from shares issues

Here

Addition Paid-In Capital of Paul Company = $200,000

Addition Paid-In Capital arising from shares issues = 60,000 shares * ($15 per share - $10 per share) = $300,000

By putting above values in the equation, we have:

Addition Paid-In Capital after merger = $200,000 + $300,000

Addition Paid-In Capital after merger = $500,000

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The less the money left by Simon at the end of the month after the monthly payments made him take the step of evaluating the results.

<h3>What is the five-step problem-solving process?</h3>

The five-step problem-solving has been given as the step that enables the person to evaluate the problem and find the solution. The steps involved are:

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4 0
2 years ago
Jones Lumber Co. has annual fixed costs including depreciation of $300,000 and variable costs that are 88.25 percent of sales. W
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Answer:

$2,553,191

Explanation:

The formula to compute the break even point in dollars amount is presented below:

= (Fixed cost ) ÷ (Profit volume ratio)

where,  

Fixed cost = $300,000

And the profit volume ratio would be

= (Contribution margin) ÷ (Sales) × 100

We assume the sales be 100%

So, the variable cost is

= 88.25%

And, the contribution margin is

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= 11.75%

So, the break even sales would be

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3 years ago
Outline reasons why some chemicals are not suitable for man's use​
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Answer: Chemicals such as insecticides, pesticides, and others must be kept away because they can contaminate food, and make it poisonous to anybody. Some can cause burns, vomiting, diarrhea, and in very large amounts, drowsiness or death. Chemical products may cause immediate health effects, such as skin or eye irritation or burns, or poisoning. There can also be longer-term health effects from chemicals.

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2 years ago
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asmine Smith owns a condo worth $250,000, a car valued at $15,000, and miscellaneous assets worth $7,500. She owes $190,000 on t
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Answer:

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The total liabilities of Asmine Smith is computed as:

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Putting the values above:

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3 years ago
Financial risk management is a component of enterprise risk management (ERM). ERM encompasses the methods and procedures used by
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Answer:

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