GunnerWilbert5178
22.07.2019 •
Business
On august 31, 2010, wood corp. issued 100,000 shares of its $20 par value common stock for the net assets of pine, inc., in a business combination accounted for using the acquisition method. the market value of wood's common stock on august 31 was $36 per share. wood paid a fee of $160,000 to the consultant who arranged this acquisition. costs of registering and issuing the equity securities amounted to $80,000. no goodwill was involved in the purchase. what amount should wood capitalize as the cost of acquiring pine's net assets?
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Ответ:
$3,600,000 is the amount Wood should capitalize as the cost of acquiring Pine's net assets.
Given:
Wood Corp. issued 100,000 shares of its $20 par value
The market value of Wood's common stock on August 31 was $36 per share.
Wood paid a fee of $160,000 to the consultant who arranged this acquisition.
Costs of registering and issuing the equity securities amounted to $80,000.
∴ Cost of acquiring = 100,000 shares issued × $36 per share
= $3,60,000
Ответ: