Nash Company acquired Seel Corporation through an exchange of common shares.All of Seel's assets and liabilities were immediately transferred to Nash.Nash's common stock was trading at $25 per share at the time of the exchange.The total par value of Nash's stock outstanding before and after the acquisition was $750,000 and $840,000,respectively.Nash's additional paid-in capital before and after the acquisition were $200,000 and $560,000,respectively.
-Based on the preceding information,what number of shares did Nash issue at the time of the exchange?

Question

Quizplus · Accepted Answer

Nash's additional paid-in capital increased by $360,000 ($560,000 - $200,000). The par value of stock increased by $90,000 ($840,000 - $750,000). The total increase in equity is $450,000 ($360,000 + $90,000). At $25 per share, Nash issued 18,000 shares ($450,000 / $25).

Nash Company Acquired Seel Corporation Through an Exchange of Common