Answer:
$2900000
Explanation:
Attached is the missing details of Poe corporation.
Given: Poe issued 200000 shares
Share issued at $10 par common stock
Market price of a share issued is $18.
Additional paid-in capital= $1300000.
Now, finding the additional paid in capital to be reported.
First finding the difference in price of shares issued by Poe corporation to know the existing additional paid in capital on Poe´s book.
Difference of price per shares= [tex]\$ 18-\$ 10= \$8[/tex]
Calculating the existing additional paid in capital on Poe´s book.
Existing additional paid in capital on Poe´s book= [tex]Number\ of\ share\ issued\times difference\ in\ per\ share[/tex]
Existing additional paid in capital on Poe´s book= [tex]\$8\times 200000= \$ 1600000[/tex]
∴ Existing additional paid in capital on Poe´s book is $1600000.
Next, finding the additional paid in capital to be reported.
∴ Additional paid in capital to be reported= Existing additional paid in capital on Poe´s book + Additional paid in capital from new stock issuance.
Additional paid in capital to be reported= [tex]\$ 1600000 + \$ 1300000= \$ 2900000[/tex]
∴ $2900000 is the additional paid in capital to be reported on merger of saxe corporation into Poe corporation.
