See BPP exam kits number 30 Parentis(2.5 6/07) see its answer, see the consolidated statement of financial position the Equity shares why has it added 75???
Thanks in advance
working 2 tells you! P issued $75,000 worth of shares in payment for the subsid. at a value of 75 cents each. $75,000 worth of shares = 300,000 shares at a premium of 50 cents per share means we need to increase share capital by $75,000 and increase share premium by $150,000. This gives a total consideration ( in the form of shares ) of $225,000. The question specifies, top paragraph, that only the loan note has been recorded and the share element of the purchase consideration has NOT yet been recorded
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