The stockholders' equities of Penn Corporation and Simon Corporation were as follows on January 1, 2016:

On January 2, 2016 Penn Corp. issued 100,000 of its shares with a market value of $14 per share in exchange for all of Simon's shares, and Simon Corp. was dissolved. Penn Corp. paid $10,000 to register and issue the new common shares.
Required:
Prepare the stockholders' equity section of Penn Corp. balance sheet after the business combination on January 2, 2016.

Question

The stockholders' equities of Penn Corporation and Simon Corporation were as follows on January 1, 2016:

On January 2, 2016 Penn Corp. issued 100,000 of its shares with a market value of $14 per share in exchange for all of Simon's shares, and Simon Corp. was dissolved. Penn Corp. paid $10,000 to register and issue the new common shares.
Required:
Prepare the stockholders' equity section of Penn Corp. balance sheet after the business combination on January 2, 2016.

Quizplus · Accepted Answer

The Answer of The stockholders' equities of Penn Corporation and Simon Corporation were as follows on January 1, 2016:

On January 2, 2016 Penn Corp. issued 100,000 of its shares with a market value of $14 per share in exchange for all of Simon's shares, and Simon Corp. was dissolved. Penn Corp. paid $10,000 to register and issue the new common shares.
Required:
Prepare the stockholders' equity section of Penn Corp. balance sheet after the business combination on January 2, 2016.

The Stockholders' Equities of Penn Corporation and Simon Corporation Were