pan company issued 960 000 shares of 10 par common stock with a fair value of 20 400 4372610

Pan Company issued 960,000 shares of $10 par common stock with a fair value of $20,400,000 for all the voting common stock of Set Company. In addition, Pan incurred the following costs: Legal fees to arrange the business combination ……………………………………… $200,000 Cost of SEC registration, including accounting and legal fees ………………………… 96,000 Cost of printing and issuing net stock certificates ……………………………………… 24,000 Indirect costs of combining, including allocated overhead and executive salaries …… 160,000 Immediately before the acquisition in which Set Company was dissolved, Set’s assets and equities were as follows (in thousands): Book Value Fair Value Current assets …………….. $ 8,000 ………….. $ 8,800 Plant assets ……………….. 12,000 …………… 17,600 Liabilities ………………….. 2,400 …………….. 2,400 Common stock …………… 16,000 Retained earnings …………. 1,600 Required Prepare all journal entries on Pan’s books to record the acquisition. View Solution:
Pan Company issued 960 000 shares of 10 par common stock

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