On March 10, PT Pratama Tbk issued 1,000,000 of its common shares with a par value...

 

Transcribed Image Text:

On March 10, PT Pratama Tbk issued 1,000,000 of its common shares with a par value of $20 to acquire PT Sumber Tbk. The fair value of the stock at the time was $40 per share. PT Pratama Tbk incurred costs of $200,000 for regis- tering and issuing the securities, $50,000 for printing the shares, $100,000 in accountants for the business combina- tion, $20,000 for delivering the securities, and $30,000 for transferring the assets of PT Sumber Tbk. REQUIRED: Calculate the additional paid-in capital that should be recorded by PT Pratama Tbk from the transaction. On March 10, PT Pratama Tbk issued 1,000,000 of its common shares with a par value of $20 to acquire PT Sumber Tbk. The fair value of the stock at the time was $40 per share. PT Pratama Tbk incurred costs of $200,000 for regis- tering and issuing the securities, $50,000 for printing the shares, $100,000 in accountants for the business combina- tion, $20,000 for delivering the securities, and $30,000 for transferring the assets of PT Sumber Tbk. REQUIRED: Calculate the additional paid-in capital that should be recorded by PT Pratama Tbk from the transaction.

Answer rating: 100% (QA)

Answer Step by Step Explanation Step 1 Additional paidin capital APIC is the fair value of share cap... View the full answer