The following summarized balance sheets were prepared for the Gold Company and Mythic Corporation.

The appraised values of the Mythic Corporation’s land and buildings are P20,000 and P258,000, respectively. Gold issues 15,250 shares of common stocks with a fair value of P12 each. Gold also pays out-of-pocket costs for the following:

 

Broker's fee	10,000
Professional fees to valuers	3,000
Legal fees	2,000
Indirect acquisition costs	5,000
Printing cost of stock certificates	3,000
Costs to issue and register the stocks	30,000

The total assets of Gold Company after the merger will be

Group of answer choices

1,383,000

1,338,000

1,483,000

1,438,000

Transcribed Image Text:

Current assets Land Building, net Goodwill Total Assets Gold Mythic 350,000 185,000 80,000 25,000 250,000 325,000 195,000 100,000 875,000 635,000 Accounts payable 115,000 85,000 Bonds payable 170,000 150,000 Common stocks, P10 par 150,000 75,000 APIC 200,000 40,000 Retained Earnings 240,000 285,000 Total Liabilities and Equity 875,000 635,000 Current assets Land Building, net Goodwill Total Assets Gold Mythic 350,000 185,000 80,000 25,000 250,000 325,000 195,000 100,000 875,000 635,000 Accounts payable 115,000 85,000 Bonds payable 170,000 150,000 Common stocks, P10 par 150,000 75,000 APIC 200,000 40,000 Retained Earnings 240,000 285,000 Total Liabilities and Equity 875,000 635,000

Answer rating: 100% (QA)

Step 1 iTotal fair value of assets of Mythic Corporat... View the full answer