When one company purchases another company, acquired assets are reported at, fair value of those assets....
When one company purchases another company, acquired assets are reported at,
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fair value of those assets.
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book value of the asset.
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historical cost of the asset.
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lower cost of fair value.
Homework Answers
Book value of the asset.
When one company purchases another company, acquired assets are reported at,Book value of the asset.
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When one company purchases another company, acquired assets are
reported at,
fair value of those assets....
6. A company purchases assets from another company for $10,000,000 in cash. The fair value of...
6. A company purchases assets from another company for $10,000,000 in cash. The fair value of the tangible assets is $7,000,000. Required: Prepare the journal entry to record the acquisition on the books of the acquirer, assuming: a. The acquisition qualifies for acquisition accounting. b. The acquisition does not qualify for acquisition accounting.
14. A company acquires the assets and liabilities of another company. The fair value of the...
14. A company acquires the assets and liabilities of another company. The fair value of the acquired company's identifiable net assets is $5,000,000. The acquisition transaction includes the following: $5,000,000 in cash paid to the former owners of the acquired company 150,000 new shares of stock with a market value $45/share. Registration fees, paid in cash, were $1,000,000 $4,000,000 in cash paid to the underwriter for consulting services Earnings contingency with an expected present value of $3,000,000 at the date...
A company issues new stock with a fair value of $120,000 to acquire 85% of the...
A company issues new stock with a fair value of $120,000 to acquire 85% of the stock of another company. The fair value of the noncontrolling interest at the date of acquisition is $19,000, and the book value of the acquired company is $15,000. The subsidiary's net assets are reported at amounts approximating fair value at the date of acquisition, except that its plant assets are overvalued by $25,000, its reported license agreements are undervalued by $30,000, and it has...
A company acquires all of the assets and liabilities of another company. Which statement is false?...
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QUESTION 18 Long term assets of the acquired company are reduced in proportion to their fair...
QUESTION 18 Long term assets of the acquired company are reduced in proportion to their fair values and any excess is recorded as a deferred credit (negative goodwill) when the purchase price of the acquired company is less than fair value of net assets acquired. True False
On December 31, 20X8, Pintz Corporation reported total assets of $900,000 and Still Company reported total...
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Goodwill arises when one firm acquires the net assets of another firm and pays more for...
Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair value. Suppose that Target Co. had operating income of $60,900 and net assets with a fair value of $233,000. Takeover Co. pays $302,000 for Target Co.'s net assets and business activities. Required: a. How much goodwill will result from this transaction? Goodwill b. Calculate the ROI for Target Co, based on its present operating income and the...
An asset is classified as goodwill on the balance sheet when a company purchases an asset at greater than fair-market value.
QUESTION 10 / 11 An asset is classified as goodwill on the balance sheet when a company purchases an asset at greater than fair-market value. According to GAAP, you can adjust goodwill when ______________SELECT ONLY ONE an asset is sold stock prices go down a new asset is purchased stock prices go up goodwill is impaired
When considering an acquisition, which of the following is NOT a method by which one company...
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QUESTION 18 Long term assets of the acquired company are reduced in proportion to their fair values and any excess is recorded as a deferred credit (negative goodwill) when the purchase price of the acquired company is less than fair value of net assets acquired. True False
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When considering an acquisition, which of the following is NOT a method by which one company may gain control of another company? Purchase of the majority of outstanding voting stock of the acquired company. Purchase of all the outstanding voting stock of the acquired company. Purchase of all assets and liabilities of another company. Purchase of 25% of outstanding voting stock of the acquired company. The GAAP defines the accounting concept of a business combination as a transaction or other...
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