What is the total balance in designs additional paid-in

Assignment Help Financial Management
Reference no: EM132369002

Question

On May 1, 2019, Design Co. issues 20,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Silk Corp.'s common stock. Design paid $25,000 to lawyers, accountants and brokers for assistance in bringing about this acquisition.

In addition, Design paid $10,000 for costs to issue the new shares of stock. Before the acquisition, Design has $500,000 in its common stock account and $900,000 in its additional paid-in capital account.

Immediately after the acquisition, what is the total balance in Design's additional paid-in capital account?

Reference no: EM132369002

Questions Cloud

Behind quotas sound positive for domestic economies : The political reasons behind quotas sound positive for domestic economies, but quotas can also be harmful to them as well.
Governments intervene in trade for many reasons : Governments intervene in trade for many reasons. Sometimes, they intervene in trade in order to ensure that local companies
Unintentional impacts of hampering domestic industries : Tariffs are aimed to protect domestic industries and local workers. However increasing tariffs may exert the unintentional impacts of hampering domestic
What is one commodity that can be used in place : What is one commodity that can be used in place of paper/coin money?
What is the total balance in designs additional paid-in : On May 1, 2019, Design Co. issues 20,000 shares of its $10 par value $25 fair value common stock in exchange for all of the shares of Silk Corps.
What is the best way for consumers : What is the best way for consumers to get information before a purchase?
Personal consumption expenditures in nominal gdp : How do you find out the percentage for personal consumption expenditures in nominal GDP?
Why the tax law provides this seemingly disparate treatment : If Joan, an individual, sells appreciated property to a partnership, she would likely recognize a taxable gain on this transaction under U.S. Federal tax law.
How does it relate to the concept of asymmetric information : How does it relate to the concept of asymmetric information about knowing what the seller is willing to tell you about the condition of a product?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the partial valuation equation for this investment

Now EBV is considering a 2X liquidation preference on the RP. What is the partial valuation equation for this investment?

  Should the disposables division accept or reject the offer

Should the Disposables Division accept or reject the offer? Show calculations of how you came up with answer and explanation.

  The immediate dilution potential for this new stock issue

Louisiana Timber Company currently has 5 million shares of stock outstanding and will report earnings of $9 million in the current year. The company is considering the issuance of 1 million additional shares that will net $40 per share to the corpora..

  Calculate weighted average cost of capital

ABC would like to expand and have a capital structure of. Calculate the weighted average cost of capital.

  Derive the price of preferred stock

Derive the price of the preferred stock in the 2 cases where it is callable and in 5 years when it becomes non-callable.

  Calculate the NPV of ambulance if required rate of return

Central Mass Ambulance Service can purchase a new ambulance for $200,000 that will provide an annual net cash flow of $50,000 per year for five years. The salvage value of the ambulance will be $25,000. Assume the ambulance is sold at the end of year..

  Corporate valuation-what is the stock value per share

Smith has no debt or preferred stock, and its WACC is 14%. If Smith has 55 million shares of stock outstanding, what is the stock's value per share

  Example of systematic risk-according to markowitz risk

Which of the following risks confronting ABC Worldwide, Inc. is an example of a systematic risk? According to Markowitz risk can be: Which of the following statement(s) concerning beta coefficients is (are) correct?

  Mutually exclusive events

Mutually Exclusive events – If event A and event B cannot occur jointly (simultaneously), P(A and B) = 0, and A and B are called mutually exclusive events.

  Crescent corporation under nine-year lease agreement

At January 1, 2018, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement.

  What is net present value of project

What is the net present value of the project if the required rate of return is 15 percent?

  What is the annual loan constant

What is the annual loan (mortgage) constant on a $400,000 loan for 30 years at 5% interest rate? Assume payments are made monthly.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd