{"id":54698,"date":"2021-09-30T15:51:15","date_gmt":"2021-09-30T15:51:15","guid":{"rendered":"https:\/\/papersspot.com\/blog\/2021\/09\/30\/h-acct302-as1-analyze-advantages-and-disadvantages-of-business-combination-either-by-acquiring-assets\/"},"modified":"2021-09-30T15:51:15","modified_gmt":"2021-09-30T15:51:15","slug":"h-acct302-as1-analyze-advantages-and-disadvantages-of-business-combination-either-by-acquiring-assets","status":"publish","type":"post","link":"https:\/\/papersspot.com\/blog\/2021\/09\/30\/h-acct302-as1-analyze-advantages-and-disadvantages-of-business-combination-either-by-acquiring-assets\/","title":{"rendered":"H | ACCT302 | As1 | Analyze advantages and disadvantages of business combination either by acquiring Assets.."},"content":{"rendered":"<p>Q1. Analyze advantages and disadvantages of business combination either by acquiring Assets vs. Stock and by what are the Major Decision Factors to choose between Acquiring of Assets vs. Stock?(1.0 mark) <br \/>Answer: <br \/>Q2 ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary ) for SR 3,000,000 cash and 50,000 shares of its own common stock (SR 1 par value), which was trading SR 30 per share in Saudi stock exchange at the acquisition date in January 1,2021 ?(1.0 mark) <br \/>Required: Prepare the journal entry to record the acquisition on the books of parent <br \/>Answer: <\/p>\n<p>Q3. ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary) and ABC assumed and paid in cash the following direct costs of acquisition: ?(1.0 mark) <br \/>Expense name <br \/>Amounts in SR <br \/>Legal fees <br \/>5,000 <br \/>Accounting fees <br \/>10,000 <br \/>Travel expenses <br \/>2,000 <br \/>Legal fees (stock issue) <br \/>15,000 <br \/>Accounting fees (stock issue) <br \/>3,000 <br \/>SEC filing fees <br \/>15,000 <br \/>Total <br \/>50,000 <\/p>\n<p>Required: Prepare the journal entry to record the direct costs. <br \/>Answer: <\/p>\n<p>Q4. ABC Corp. paid SR 3,500,000,000 in cash for Oraby Inc. and that the estimated fair market values of Subsidiary\u2019 assets, liabilities, and equity accounts are as follows as of December 31 ,2020 . ? (1.0 mark) <br \/>Title <br \/>Fair value in SR <br \/>Accounts Receivable <br \/>1000,000 <br \/>Inventory <br \/>500,000 <br \/>PP<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q1. Analyze advantages and disadvantages of business combination either by acquiring Assets vs. Stock and by what are the Major Decision Factors to choose between Acquiring of Assets vs. Stock?(1.0 mark) Answer: Q2 ABC Corporation (parent) acquired 100% of the outstanding common stock of Oraby Inc. (subsidiary ) for SR 3,000,000 cash and 50,000 shares [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-54698","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/54698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=54698"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/54698\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=54698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=54698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=54698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}