P Corporation paid $2,000,000 for all 200,000 shares outstanding of S Corporation. The transaction is recorded as a merger. The balance sheet of S corporation on the date of acquisition was:
Cash $ 200,000
Building $1,500,000
Market Value $1,600,000
Common Stock $1,700,000
Out of pocket expenses for the merger were:
Legal expense relating to the merger $10,000
What journal entry would P Corporation make to record the merger of S Corporation?
Soper Corporation issued 100,000 shares of its $1 par value (current fair value $10) common stock for all 200,000 shares outstanding of Megan Corporation. The transaction is recorded as an acquisition kept as a separate subsidiary. Out of pocket expenses for the merger were:
Legal expense relating to the merger $10,000
Sec Fee to issue stock 5,000
Finder's fee 6,000
Printer's fee for stock certificates 1,000
What journal entry would Soper Corporation make to record the purchase of Megan Corporation? Show in journal and T Account format.