MG Corporation exchange 150,000 shares of newly issued P1 par value common stock with a fair market value of P25 per share for all of the outstanding PS par value

MG Corporation exchange 150,000 shares of newly issued P1 par value common stock with a fair market value of P25 per share for all of the outstanding PS par value common stock of GC Company and such is then dissolved. MG Corp. paid the following costs and expenses related to the business combination: Costs of special shareholders’ meeting to vote on the merger P13,000 Registering and issuing securities 14,000 Accounting and legal fees 9,000 Salaries of MG Corp.’s employees assigned to the implementation of the merger 15,000 Cost of closing duplicate facilities 11,000 In the business combination of MG Corp and GC Company Group of answer choices The cost of registering and issuing the securities are included as part of the purchase price for GC Company. Only the salaries of MG’s employees assigned to the merger are treated as expense None is included in the purchase price of GC Co All of the costs except those of registering and issuing the securities are included in the purchase price of GC Co.

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