Reference no: EM132747897
Problem - Pool Company issued 120,000 shares of 10 par common stock with a fair value of 2,550,000 for the net assets of Sport Company. In addition, Pool incurred the following acquisition-related costs:
Legal Fees to arrange the business combination 25,000
Costs of SEC registration, including accounting and legal fees 12,000
Cost of issuing stock certificate 3,000
Documentary stamp tax 20,000
Immediately before the business combination in which Spot Company was dissolved, Spot's assets and equities were as follows:
|
|
Book Value
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Fair Value
|
|
Current assets
|
2,000,000
|
1,100,000
|
|
Plant Assets
|
1,500,000
|
2,200,000
|
|
Liabilities
|
300,000
|
300,000
|
|
Common stock
|
2,000,000
|
|
|
Retained earnings
|
200,000
|
|
Required - What is the amount of goodwill (income from acquisition) and APIC to be recognized by Pool Company?