Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. maxwell acquires 100 percent of the outstanding vo

Maxwell acquires 100 percent of the outstanding voting shares of Daisy Company on January 1,...

80.2K

Verified Solution

Question

Accounting

Maxwell acquires 100 percent of the outstanding voting shares of Daisy Company on January 1, 2016. To obtain these shares, Maxwell pays $200,000 cash and issues 6,000 shares of $5 par value common stock on this date. Maxwells stock had a fair value of $20 per share. Maxwell also pays an additional $4,000 in stock issuance costs. At date of acquisition, the book values and fair values of Daisy's net assets amounted to $230,000 and $265,000, respectively. How much additional paid-in capital was recorded as a result of the combination? Please show solutions.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

empah s tt son nbach ka thy a Pulse 71 28288 FE 78 65 65...

Basic Math
1.2K views

A random sample of 30 stocks was selected from each of the three major U.S. exchanges...

Medical Sciences
1.2K views

what purpose do fimbrae serve?

Psychology
1.2K views

Why was the second front so vital to the Soviet Union? Why did it take so...

Calculus
1.2K views

3 A roast turkey is taken from an oven when its temperature has reached 185...

Algebra
1.2K views

The function function f x on the interval 9 x 1 10 8 6 4...

Accounting
1.2K views

You are in your second year in the BCom program at York University and came...

Accounting
1.2K views

need a help in this exercise 3. Bill Braddock is considering opening...

Accounting
1.2K views

Following are comparative balance sheets for Millco Inc. at January 31 and February 28, 2020:...

Accounting
1.2K views

Required information E4-15 Recording Adjusting Entries and Preparing an Adjusted Trial Balance [LO 4-2, 4-3]...

Accounting
1.2K views

Fill in the blank question.\ Product ABC has a contribution margin per unit of $10.00....

Accounting
1.2K views

The required tasks are detailed below: (1) Prepare common-size balance sheets and income...