Solution-Compute the common stock should be reported

Compute the common stock should be reported

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Question - On December 31, year 1, Saxe Corporation was acquired by Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was

Particulars	Poe	Saxe
Common stock	$3,000,000	$1,500,000
Additional paid-in capital	1,300,000	150,000
Retained earnings	2,500,000	850,000
Total	$6,800,000	$2,500,000

Required - In the December 31, year 1 consolidated balance sheet, compute the common stock should be reported?

a. $5,000,000

b. $4,000,000

c. $3,500,000

d. $3,000,000

Reference no: EM132646511

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Compute the common stock should be reported

Reference no: EM132646511

Reference no: EM132646511

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