Aram financed the acquisition through: issuing 30000 common shares, 10 par value, at price of 13 JD/share, and issuing 1000 Preferred shares at 100 par value and paying the remaining with cash. Aram also agreed to pay 15000 JD cash if the post combination earnings exceeded 70000 JD after years. The acquisition expenses included consulting for 5000 JD and cost of issuing shares for 8000 JD. What price should have Aram needed to pay in order to record a bargain gain of 70000 JD?

Answer rating: 100% (QA)

Solution Let the amount of payment be x Common shares 30000 x 13 390000 P... View the full answer