Pali Corporation Exchanges 200,000 Shares of Newly Issued $10 Par

question 32

Essay

Pali Corporation exchanges 200,000 shares of newly issued $10 par value common stock with a fair market value of $40 per share for all the outstanding $5 par value common stock of Shingle Incorporated,which continues on as a legal entity.Fair value approximated book value for all assets and liabilities of Shingle.Pali paid the following costs and expenses related to the business combination:
Required: Prepare the journal entries relating to the above acquisition and payments incurred by Pali,assuming all costs were paid in cash.

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Definitions:

NLRB

The National Labor Relations Board, a federal agency in the United States that enforces labor laws in relation to collective bargaining and unfair labor practices.

Wildcat Strike

An unauthorized work stoppage initiated by employees without the approval of their union leadership, often in response to immediate grievances.

Jurisdictional Strike

A strike due to a dispute between two or more unions about which one has jurisdiction over a certain job or workplace.

Conventional Arbitration

A dispute resolution process where a neutral third party makes a binding decision on a conflict between two parties, commonly used in labor disputes.