Homework Answers
1. b, $540000 will be added to the parent's inventory balance because inventory is valued at fair value at time of consolidation.
2.$1860000 as the equity includes the common stock,any additional paid up capital and retained earnings also because retained earnings are also part of equity.
3.$ 780000 as the land's fair value will be considered for consolidation. further all assets and liabilities will be taken at fair value except stock.
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d. $180,000 What amount of inventory would be added to the parent's invertory balance to get...
Answers given. Can you please explain the calculations. The following information applies: Huey Company acquires 100%...
Answers given. Can you please explain the calculations. The following information applies: Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000 cash. As of that date Solar had the following account balances: Book Value Fair value Cash $300,000 $300,000 Accounts receivable 325,000 325,000 Inventory 350,000 $400,000 Building-net (10 year life) 1,000,000 900,000 Equipment-net (5 year life) 300,000 400,000 Land 600,000 900,000 Accounts Payable 125,000 125,000 Bonds Payable (Face amount $1,000,000; due 12/31/2023) 2,000,000...
Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000...
Huey Company acquires 100% of the stock of Solar Corporation on January 1, 2019, for $2,400,000 cash. As of that date Solar had the following account balances: Book Value Fair value Cash $300,000 $300,000 Accounts receivable 325,000 325,000 Inventory 350,000 $400,000 Building-net (10 year life) 1,000,000 900,000 Equipment-net (5 year life) 300,000 400,000 Land 600,000 900,000 Accounts Payable 125,000 125,000 Bonds Payable (Face amount $1,000,000; due 12/31/2023) 2,000,000 2,050,000 Common stock 700,000 Additional paid-in capital 250,000 Retained earnings 880,000 In...
Hello. I am trying to figure out how you get the amount of $480,000 in the...
Hello. I am trying to figure out how you get the amount of
$480,000 in the 1/1/18 stockholder's equity balance in the
solutions section (where I drew a blue arrow). Please provide your
response and all side calculations in Word or Excel format as it is
easy to read. I appreciate it.
LO 3-1, 3-4 23. Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Penske Stanza Revenues Cost of goods sold. Depreciation...
Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2015. The...
Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2015. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2015 Sea-Breeze had the following assets and liabilities: Book Value Fair Value Current assets $ 150,000 $ 150,000 Land 200,000 200,000 Buildings (net) (6-year remaining life) 300,000 360,000 Equipment (net) (4-year remaining life) 300,000 280,000 Patent (10-year remaining life) 0...
LO 5-2 E5-4 Computation of Consolidated Balances Statue Corporation's balance sheet at January 1, 20X7, reflected...
LO 5-2 E5-4 Computation of Consolidated Balances Statue Corporation's balance sheet at January 1, 20X7, reflected the following balances: $ 40,000 Cash & Receivables Inventory Land Buildings & Equipment (net) $ 80,000 120,000 70,000 480,000 60,000 200,000 Accounts Payable Income Taxes Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity 250,000 200,000 $750.000 Total Assets $750,000 Prize Corporation entered into an active acquisition program and acquired 80 percent of Statue's common stock on January 2, 20X7, for...
need help... please fix the errors as soon as possible. Thanks in advance! Pushdown Accounting Assume...
need help... please fix the errors as soon as possible. Thanks
in advance!
Pushdown Accounting Assume a parent company acquires its subsidiary by paying $1,200,000 for all of the outstanding voting shares of the investee. On the acquisition date, subsidiary's assets and liabilities have individual fair values that equal their book values, except for property equipment with a fair value greater than book value by $150,000 and license with a fair value greater than book value by $250,000. The parent...
please explain CISE 2-1 Asset Purchase LO 6 Book Value Fair Value Cash Receivables (net) Inventory...
please explain
CISE 2-1 Asset Purchase LO 6 Book Value Fair Value Cash Receivables (net) Inventory Plant and equipment (net) Land $ 120,000 192,000 360,000 480,000 420,000 $ 120,000 228,000 396,000 540,000 660,000 Total assets $1,572,000 $1,944,000 $ 594,000 Liabilities Common stock ($5 par value) Other contributed capital Retained earnings Total equities $ 540,000 480,000 132,000 420,000 $1,572,000 Required: A. Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of...
have created a fair value and goodwill allocation schedule based on the data. Would it be...
have created a fair value and goodwill allocation schedule based
on the data. Would it be a good decision to acquire Arizona Corp?
Please use the fair value allocation and good will schedule below
to answer the question.
Arizona Corp. had the following account balances at 12/1/19:
Receivables: $96,000; Inventory: $240,000; Land: $720,000;
Building: $600,000; Liabilities: $480,000; Common stock: $120,000;
Additional paid-in capital: $120,000; Retained earnings, 12/1/19:
$840,000; Revenues: $360,000; and Expenses: $264,000. Several of
Arizona's accounts have fair values...
I have created a fair value and goodwill allocation schedule based on the data. Would it...
I have created a fair value and goodwill allocation schedule
based on the data. Would it be a good decision to acquire Arizona
Corp?
Arizona Corp. had the following account balances at 12/1/19:
Receivables: $96,000; Inventory: $240,000; Land: $720,000;
Building: $600,000; Liabilities: $480,000; Common stock: $120,000;
Additional paid-in capital: $120,000; Retained earnings, 12/1/19:
$840,000; Revenues: $360,000; and Expenses: $264,000. Several of
Arizona's accounts have fair values that differ from book value.
The fair values are: Land — $480,000; Building —...
The financial balances for the Atwood Company and the Franz Company as of December 30, 20X1,...
The financial balances for the Atwood Company and the Franz Company as of December 30, 20X1, are presented below. Also included are the fair values for Franz Company's net assets. Atwood Book Value Franz Book Value Franz Fair Value Cash $870,000 $240,000 $240,000 Receivables 660,000 600,000 600,000 Inventory 1,230,000 420,000 580,000 Land 1,800,000 260,000 250,000 Buildings, net 1,800,000 540,000 650,000 Equipment, net 660,000 380,000 400,000 Accounts payable 570,000 240,000 240,000 Accrued expenses 270,000 60,000 60,000 Long-term liabilities 2,700,000 1,020,000 1,120,000...
Hello. I am trying to figure out how you get the amount of
$480,000 in the 1/1/18 stockholder's equity balance in the
solutions section (where I drew a blue arrow). Please provide your
response and all side calculations in Word or Excel format as it is
easy to read. I appreciate it.
LO 3-1, 3-4 23. Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Penske Stanza Revenues Cost of goods sold. Depreciation...
LO 5-2 E5-4 Computation of Consolidated Balances Statue Corporation's balance sheet at January 1, 20X7, reflected the following balances: $ 40,000 Cash & Receivables Inventory Land Buildings & Equipment (net) $ 80,000 120,000 70,000 480,000 60,000 200,000 Accounts Payable Income Taxes Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity 250,000 200,000 $750.000 Total Assets $750,000 Prize Corporation entered into an active acquisition program and acquired 80 percent of Statue's common stock on January 2, 20X7, for...
need help... please fix the errors as soon as possible. Thanks
in advance!
Pushdown Accounting Assume a parent company acquires its subsidiary by paying $1,200,000 for all of the outstanding voting shares of the investee. On the acquisition date, subsidiary's assets and liabilities have individual fair values that equal their book values, except for property equipment with a fair value greater than book value by $150,000 and license with a fair value greater than book value by $250,000. The parent...
please explain
CISE 2-1 Asset Purchase LO 6 Book Value Fair Value Cash Receivables (net) Inventory Plant and equipment (net) Land $ 120,000 192,000 360,000 480,000 420,000 $ 120,000 228,000 396,000 540,000 660,000 Total assets $1,572,000 $1,944,000 $ 594,000 Liabilities Common stock ($5 par value) Other contributed capital Retained earnings Total equities $ 540,000 480,000 132,000 420,000 $1,572,000 Required: A. Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of...
have created a fair value and goodwill allocation schedule based
on the data. Would it be a good decision to acquire Arizona Corp?
Please use the fair value allocation and good will schedule below
to answer the question.
Arizona Corp. had the following account balances at 12/1/19:
Receivables: $96,000; Inventory: $240,000; Land: $720,000;
Building: $600,000; Liabilities: $480,000; Common stock: $120,000;
Additional paid-in capital: $120,000; Retained earnings, 12/1/19:
$840,000; Revenues: $360,000; and Expenses: $264,000. Several of
Arizona's accounts have fair values...
I have created a fair value and goodwill allocation schedule
based on the data. Would it be a good decision to acquire Arizona
Corp?
Arizona Corp. had the following account balances at 12/1/19:
Receivables: $96,000; Inventory: $240,000; Land: $720,000;
Building: $600,000; Liabilities: $480,000; Common stock: $120,000;
Additional paid-in capital: $120,000; Retained earnings, 12/1/19:
$840,000; Revenues: $360,000; and Expenses: $264,000. Several of
Arizona's accounts have fair values that differ from book value.
The fair values are: Land — $480,000; Building —...
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