On January 2, 2016, Pop Corporation enters into a business combination with Son Corporation in which Son

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On January 2, 2016, Pop Corporation enters into a business combination with Son Corporation in which Son is dissolved. Pop pays $1,650,000 for Son, the consideration consisting of 66,000 shares of Pop $10 par common stock with a market value of $25 per share. In addition, Pop pays the following expenses in cash at the time of the merger:

Finder's fee ............................................. $ 70,000

Accounting and legal fees ............................. 130,000

Registration and issuance costs of securities ......... 80,000

............................................................... $280,000

Balance sheet and fair value information for the two companies on December 31, 2015, immediately before the merger, is as follows (in thousands):

On January 2, 2016, Pop Corporation enters into a business

Required:
Prepare a balance sheet for Pop Corporation as of January 2, 2016, immediately after the merger, assuming the merger is treated as an acquisition.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 978-0134472140

13th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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