Solution-How much is the net increase in the shareholders

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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How much is the net increase in the shareholders equity

Reference no: EM133060043

Reference no: EM133060043

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