Homework Answers
Answer:
| Total assets | $360,000 |
| Less: Liabilities | -160,000 |
| Book value | $200,000 |
| Acquistion price | 300,000 |
| Less: book value | 200,000 |
| excess price over book value | 100,000 |
| Allocated to non current assets (40000*(1-.4)) | 24000 |
| Goodwill (100000-24000) | 76000 |
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Tax effects of business combinations (taxable, market value differs from book value) Assume that on January...
Tax effects of business combinations (nontaxable, market value differs from book value) Assume that on January...
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Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common...
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Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common...
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Use the following facts for Multiple Choice problems 38 and 39: Assume on January 1, 2019,...
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L01 45. Effects of qualifying as a business on asset acquisitions Assume on January 1, 2019 an investor company paid $2,250 to an investee company in exchange for the following assets and liabilities transferred from the investee company: Investee's Estimated Fair Value Asset (Liability) Value Production equipment. ... Factory ........ Land Patents. $ 300 1,500 100 0 $ 240 1,200 600 360 fair value of $200 and arty. The contingen erivative financial before the exchange Introduction to Business Combinations and...
Consolidating entries (market value differs from book value) Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company. The following financial statement information was prepared immediately after the acquisition and presents the acquisition-date balance sheet for the pre-consolidation investor company, the investee company and the consolidated financial statements for the investor and investee. Investor Investee Consolidated Cash & receivables $1,500,000 $187,500 $1,687,500 Inventory 1,125,000 468,750 1,593,750 Property & equipment...
Consolidating entries (market value differs from book value) Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company. The following financial statement information was prepared immediately after the acquisition and presents the acquisition date balance sheet for the pre-consolidation investor company, the investee company and the consolidated financial statements for the investor and investee. Investor Investee Consolidated Cash & receivables $500,000 $62,500 $562,500 Inventory 375,000 156,250 531,250 Property &...
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