Homework Answers
| (a) | |||
| Current assets | $50,000 | ||
| Property, plant and equipment | $85,000 | ||
| Less: Current liability | $60,000 | ||
| less: Long term liabilities | $18,000 | ||
| Fair value of Net identifiable assets | $57,000 | ||
| Account titles and explanation | Debit | Credit | |
| Current assets A/c | $50,000 | ||
| Property, plant and equipment | $85,000 | ||
| Current liabilities | $60,000 | ||
| Long term liabilities | $18,000 | ||
| Cash | $57,000 | ||
| (Being assets aquired) | |||
| (b) | Investment in subsidiary | $57,000 | |
| Cash | $57,000 | ||
| (stock acquisition) | |||
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6. Houston Company reports the following summarized balance sheet on the date that it is acquired...
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QUESTION 6 Use this balance sheet to do horizontal analysis of the Howard Company. 2019 2018...
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Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20x2, for $229,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Blank Corporation $ 61,000 83,000 109,000 222,000 229,000 $704,000 Faith Corporation $ 33,000 57,000 65,000 168,000 Item Assets Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Faith Corporation Stock Total Assets Liabilities and Stockholders' Equity Accounts Payable Notes Payable Common Stock Retained Earnings...
ohe comparative balance sheets for Russell Company appear below: RUSSELL COMPANY Comparative Balance Sheet Dec. 31,...
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Plump Corporation acquired 100 percent of Slim Corporation's common stock on December 31, 20X2, for $239,000....
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The summarized balance sheet of Separate Company on January 1, 20X3, contained the following amounts: Total Assets $420,000 Total Liabilities Preferred Stock Common Stock Retained Earnings Total Liabilities and Equities $ 45,000 110,000 85,000 180,000 $420,000 Total Assets $420,000 On January 1, 20X3, Point Corporation acquired 90 percent of the common shares and 80 percent of the preferred shares of Separate Company at underlying book value. At that date, the fair value of the noncontrolling interest in Separate's common stock...
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