Cardo co purchases the net assets of allana co by issuing 50000 shares of their 20 par value shares with a fair value of 20 per share , entered into mortgage loan of 350000 and paying dorect cost, indirect cost, and stock issue cost 75000; 50000; 20000 respectively. Determine the total amount of stockholders equity
Cardo co purchases the net assets of allana co by issuing 50000 shares of their 20 par value shares with a fair value of 20 per share , entered into mortgage loan of 350000 and paying dorect cost, indirect cost, and stock issue cost 75000; 50000; 20000 respectively. Determine the total amount of stockholders equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cardo co purchases the net assets of allana co by issuing 50000 shares of their 20 par value shares with a fair value of 20 per share , entered into mortgage loan of 350000 and paying dorect cost, indirect cost, and stock issue cost 75000; 50000; 20000 respectively. Determine the total amount of
![The following balances were taken from the trial balance of CARDO Company
and ALLANA Company at the start of the fiscal year 2018:
CARDO Co
ALLANA Co
Book Value
P3,000,000 P3,000,000
200,000
150,000
5,000,000
650,000
4,000,000
3,000,000
1,800,000-
200,000
Fair Value
Book Value
P750,000
100,000
Fair Value
P750,000
90,000
Cash
215,000
140,000
5,300,000
700,000
4,200,000
Accounts rec.
Inventory
PPE (10years)
Goodwill
Accounts pay.
Ordinary shares
50,000
2,000,000
100,000
1,500,000
750,000
500,000
250,000
40,000
2,100,000
80,000 -
1,450,000
APIC
Accumulated earnings
25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05b616b1-f483-40fe-ab9c-32c5c67d177d%2F7beaaf9a-ca82-4a03-82ae-9aea7660819b%2Fdekt3we_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following balances were taken from the trial balance of CARDO Company
and ALLANA Company at the start of the fiscal year 2018:
CARDO Co
ALLANA Co
Book Value
P3,000,000 P3,000,000
200,000
150,000
5,000,000
650,000
4,000,000
3,000,000
1,800,000-
200,000
Fair Value
Book Value
P750,000
100,000
Fair Value
P750,000
90,000
Cash
215,000
140,000
5,300,000
700,000
4,200,000
Accounts rec.
Inventory
PPE (10years)
Goodwill
Accounts pay.
Ordinary shares
50,000
2,000,000
100,000
1,500,000
750,000
500,000
250,000
40,000
2,100,000
80,000 -
1,450,000
APIC
Accumulated earnings
25
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