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,
-
fair value of those assets.
-
book value of the asset.
-
historical cost of the asset.
-
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.
Add Answer to:
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?...
A company acquires all of the assets and liabilities of another company. Which statement is false? A. The acquiring company does not report acquired intangible assets unless they are already reported on the acquired company's books. B. The acquired company no longer exists as a separate entity. C. The acquiring company reports the acquired assets and liabilities at fair value at the date of acquisition. D. The acquiring company does not revalue its assets and liabilities to fair value at...
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...
On December 31, 20X8, Pintz Corporation reported total assets of $900,000 and Still Company reported total assets of $470,000, common stock of $250,000 and retained earnings of $150,000. On January 1, 20X9, Pintz acquired 100% of the common stock of Still Company for $540,000 cash. On the date of acquisition the fair value and the book value of Still Company's net assets were approximately equal with the exception of land which had a fair value of $40,000 over reported book...
American Company acquired all of the assets and liabilities of Braziian Company. Brazialian Company has research...
American Company acquired all of the assets and liabilities of Braziian Company. Brazialian Company has research and development projects in process, which have not yet been completed. How does American Company report Brazialian’s in-process research and development? A. As an indefinite life intangible asset, at fair value B. As a limited life intangible asset, at fair value C. As part of goodwill D. It is not reported
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...
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...
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...
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
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...
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...
Most questions answered within 3 hours.
-
Clark Heter is an industrial engineer at Lyons Products. He
would like to determine whether there...
asked 54 minutes ago -
3. Use a text editor to create a comma-delimited file of user
IDs and passwords. Revise...
asked 39 minutes ago -
Jensen and Associates has a projected balance
sheet that includes the following accounts. What is the...
asked 11 minutes ago -
implement a doubly-linked list in C. Each node in the linked list should contain a string,...
asked 34 minutes ago -
What are some best practices and things to avoid when developing
a PowerPoint presentation or file
asked 37 minutes ago -
Consider the ways that the government can get involved in
economic issues. What role do you...
asked 12 minutes ago -
Sodium carbonate is added to the tea mixture, in part, to form
the sodium salt of...
asked 35 minutes ago -
he plant started to purify its wastewater before discharging it
into the lake. How long will...
asked 54 minutes ago -
Thiazyl fluoride, F3NS is a colourless gas. Using concepts of
electronegativity, formal charge etc. determine the...
asked 56 minutes ago -
1. Why is an explicit inflation target a bad policy?
2. MV=PQ If M grows, then...
asked 30 minutes ago -
A 1.50 kg sample of water at 15.0°C is in a calorimeter. You
drop a piece...
asked 56 minutes ago -
For the assignment this week, use Microsoft Word or Microsoft
Excel to create your own Comparing...
asked 32 minutes ago