Philo Corporation issued common stock in exchange for 90% of the outstanding common stock of Stype Company in a business combination. If Philo later issued common stock with a par of $1,000 and a current fair value of $100,000 for the remaining 10% of Stype's outstanding common stock, which had a stated value of $5,000, Philo's consolidated assets would increase by:

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In a business combination, when a company acquires another company's stock, the acquisition is recorded at the fair value of the consideration given. In this case, Philo Corporation issued common stock with a fair value of $100,000 to acquire the remaining 10% of Stype's outstanding common stock. Therefore, Philo's consolidated assets would increase by the fair value of the stock issued, which is $100,000.

Philo Corporation Issued Common Stock in Exchange for 90% of the Outstanding