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7. Rangers, Inc. acquires all of the outstanding common stock of Slowly Industries for $450,000 cash....
Paragraph Styles 9. On January 2, 2020, Space Co. issued 150,000 new shares of its $1...
Paragraph Styles 9. On January 2, 2020, Space Co. issued 150,000 new shares of its $1 par value common stock valued at $16 a share for all of Evolution, Inc.'s outstanding common shares. The fair value and book value of Evolution' identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2020 is as follows: Space Evolution Cash $400,000 $150,000 Inventories 400,000 440,000 Other current assets 550,000 350,000 Land...
8. On January 2, 2020, Kuehler Corporation's stockholders' equity accounts were as follows: Common Stock, $1...
8. On January 2, 2020, Kuehler Corporation's stockholders' equity accounts were as follows: Common Stock, $1 par $100,000 Additional paid-in-capital 350,000 Retained Earnings 225,000 Kuehler's assets and liabilities had book values equal to fair values except for inventory, land and building which were undervalued by $50,000, $75,000, and $40,000, respectively. On January 2, 2020, Davis Corp. purchased all of Kuehler's common stock for $900,000 cash. There was no contingent consideration in the agreement to combine. Required: Prepare all necessary consolidation...
10. On January 1, 2020, Parots & Parties Company purchased all of the common stock of...
10. On January 1, 2020, Parots & Parties Company purchased all of the common stock of Sunshine Company for $850,000 cash. On that date, Sunshine had common stock of $60,000, additional paid-in capital of $360,000, and retained earnings of $300,000. The difference between the cost of the purchase and the book value of Sunshine's net assets was at least partly due to under or overvalued assets and liabilities. Inventory was undervalued by $10,000. Land was undervalued by $70,000. Buildings and...
A parent company acquires all of the outstanding common stock of its subsidiary for cash purchase...
A parent company acquires all of the outstanding common stock of its subsidiary for cash purchase price of $265,000. On the acquisition date, the subsidiary reported $60,000 for Common Stock and $45,000 for Retained Earnings. An examination of the subsidiary’s balance sheet revealed that book values were equal to fair values for all assets, except for an unrecorded patent, which the parent values at $95,000. a. Prepare the entry that the parent makes to record the investment. b. Prepare the...
On January 1, 2018, Marshall Company acqulred 100 percent of the outstanding common stock of Tucker...
On January 1, 2018, Marshall Company acqulred 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall Issued $265,000 In long-term labilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall pald $29,500 to accountants, lawyers, and brokers for assistance In the acquisltion and another $14,500 In connection with stock Issuance costs. Prior to these transactions, the balance sheets for the...
2. Consolidating Entries (35 points) Bates Corporation purchased 100% of the common stock of Johns Inc....
2. Consolidating Entries (35 points) Bates Corporation purchased 100% of the common stock of Johns Inc. on January 2, 2021. Johns’ balance sheet on January 2, 2021 was as follows: Accounts receivable-net $350,000 Inventory Current liabilities $250,000 300,000 250,000 Long term debt Common stock ($1 par) Paid-in capital Retained carnings Total Liabilities & Equity $1,370,000 Land 200,000 45,000 Building-net Equipment-net 450,000 300,000 120,000 475,000 Total Assets $1,370,000 Fair values agree with book values except for inventory, land, and equipment that...
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker...
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $318,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $25,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $10,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the...
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker...
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $318,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $25,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $10,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the...
Pot Inc. acquired all Seed Inc.'s outstanding $25 par common stock on December 31, 20X3, in...
Pot Inc. acquired all Seed Inc.'s outstanding $25 par common stock on December 31, 20X3, in exchange for 41,000 shares of its $25 par common stock. Pot's common stock closed at $57.50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31. On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companies had condensed balance sheet accounts....
5. On January 1, 2019, P acquired all of the outstanding common stock of S for $1,000,000. On the...
need the answer to Part B only
5. On January 1, 2019, P acquired all of the outstanding common stock of S for $1,000,000. On the date of acquisition, the book value and fair market value of S's assets and liabilities were as follows: Book Value 200,000 300,000 160,000 340,000 Fair Market Value 300,000 500,000 Land Patent (10 yrs) Common Stock Retained Earnings a) Assuming that S uses push-down accounting, prepare the elimination entries as of 1/1/19. b) If P...
Paragraph Styles 9. On January 2, 2020, Space Co. issued 150,000 new shares of its $1 par value common stock valued at $16 a share for all of Evolution, Inc.'s outstanding common shares. The fair value and book value of Evolution' identifiable assets and liabilities were the same. Summarized balance sheet information for both companies just before the acquisition on January 2, 2020 is as follows: Space Evolution Cash $400,000 $150,000 Inventories 400,000 440,000 Other current assets 550,000 350,000 Land...
8. On January 2, 2020, Kuehler Corporation's stockholders' equity accounts were as follows: Common Stock, $1 par $100,000 Additional paid-in-capital 350,000 Retained Earnings 225,000 Kuehler's assets and liabilities had book values equal to fair values except for inventory, land and building which were undervalued by $50,000, $75,000, and $40,000, respectively. On January 2, 2020, Davis Corp. purchased all of Kuehler's common stock for $900,000 cash. There was no contingent consideration in the agreement to combine. Required: Prepare all necessary consolidation...
10. On January 1, 2020, Parots & Parties Company purchased all of the common stock of Sunshine Company for $850,000 cash. On that date, Sunshine had common stock of $60,000, additional paid-in capital of $360,000, and retained earnings of $300,000. The difference between the cost of the purchase and the book value of Sunshine's net assets was at least partly due to under or overvalued assets and liabilities. Inventory was undervalued by $10,000. Land was undervalued by $70,000. Buildings and...
On January 1, 2018, Marshall Company acqulred 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall Issued $265,000 In long-term labilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall pald $29,500 to accountants, lawyers, and brokers for assistance In the acquisltion and another $14,500 In connection with stock Issuance costs. Prior to these transactions, the balance sheets for the...
2. Consolidating Entries (35 points) Bates Corporation purchased 100% of the common stock of Johns Inc. on January 2, 2021. Johns’ balance sheet on January 2, 2021 was as follows: Accounts receivable-net $350,000 Inventory Current liabilities $250,000 300,000 250,000 Long term debt Common stock ($1 par) Paid-in capital Retained carnings Total Liabilities & Equity $1,370,000 Land 200,000 45,000 Building-net Equipment-net 450,000 300,000 120,000 475,000 Total Assets $1,370,000 Fair values agree with book values except for inventory, land, and equipment that...
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $318,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $25,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $10,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the...
On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $318,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $25,000 to accountants, lawyers, and brokers for assistance in the acquisition and another $10,000 in connection with stock issuance costs. Prior to these transactions, the balance sheets for the...
Pot Inc. acquired all Seed Inc.'s outstanding $25 par common stock on December 31, 20X3, in exchange for 41,000 shares of its $25 par common stock. Pot's common stock closed at $57.50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31. On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companies had condensed balance sheet accounts....
need the answer to Part B only
5. On January 1, 2019, P acquired all of the outstanding common stock of S for $1,000,000. On the date of acquisition, the book value and fair market value of S's assets and liabilities were as follows: Book Value 200,000 300,000 160,000 340,000 Fair Market Value 300,000 500,000 Land Patent (10 yrs) Common Stock Retained Earnings a) Assuming that S uses push-down accounting, prepare the elimination entries as of 1/1/19. b) If P...
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