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How much is the net increase in the shareholders equity

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Reference no: EM133060043

Question - ACCOUNTING FOR BUSINESS COMBINATION - CONSOLIDATION - DATE OF ACQUISITION - On January 1, 2022, David Company issues 10,000 shares of its P 10 par value shares with a market value of P 50 per share for the net assets of Jessie J. Corporation. Cost to register and issue the shares amounted to P 50,000. The condensed statement of financial position of Jessie J. Corporation as of 12/31/2021 is shown below:

 

BOOK VALUES

FAIR VALUES

CURRENT ASSETS

P200

P225

PLANT ASSETS

300

400

TOTAL ASSETS

P500

 

LIABILITIES

P150

 

ORDINARY SHARE CAPITAL, P10 PAR

50

 

SHARE PREMIUM

100

 

ACCUMULATED PROFIT

200

 

TOTAL EQUITIES

P500,000

 

Required - How much is the net increase in the shareholder's equity of David Company as a result of business combination?

Reference no: EM133060043

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