How much is the net increase in additional paid-in-capital

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Question - On December 31, 2007, XY Corporation was merged into AB Corporation. In the business combination, AB issued 172,000 shares of its P23 par common stock, with a market price of P47 per share. Fair market value agree with book values, additional cash payments made by AB Corp. in completing the acquisition were cost of maintaining a department, P23,500 and stock issuance cost, P33,800. The stockholders' equity section of each company's balance sheet immediately before the combination was:

 

AB

XY

Common stock

P8,450,000

P5,360,000

APIC

3,700,000

1,850,000

Retained earnings

4,080,000

3,670,000

Required -

1. How much is the net increase in additional paid-in-capital to be recorded in the books of the surviving company as a result of the business combination?

2. How much is the retained earnings immediately following the business combination?

3. Assuming a goodwill of P118,000 was recorded in the books of the surviving company, as a result of the business combination, AB Corporation issued how many shares of stocks?

Reference no: EM133173329

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