13-16. The financial balances for the Atwood Company and the Franz Company as of December 31,...
13-16. The financial balances for the Atwood Company and the Franz Company as of December 31, 20X1, are presented below. Also included are the fair values for Franz Company's net assets. Parenthesis indicate a credit balance. Assume an acquisition business combination took place at December 31, 20X1. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid.
13. Compute consolidated land at the date of the acquisition.
A. $2,060. B. $1,800. C. $260. D. $2,050.
14. Compute consolidated goodwill at the date of the acquisition.
A. $360. B. $450. C. $460. D. $440.
15. Compute consolidated retained earnings at the date of the acquisition. A. $1,160. B. $1,170. C. $1,280. D. $1,290.
16. Compute consolidated revenues at the date of the acquisition. A. $3,540. B. $2,880. C. $1,170. D. $1,650.
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Homework Answers
The question is incomplete. Financial information/balances of Atwood and Franz company are not shared.
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13-16. The financial balances for the Atwood Company and the
Franz Company as of December 31,...
13-16. The financial balances for the Atwood Company and the Franz Company as of December 31,...
13-16. The financial balances for the Atwood Company and the
Franz Company as of December 31, 20X1, are presented below. Also
included are the fair values for Franz Company's net assets.
Parenthesis indicate a credit balance. Assume an acquisition
business combination took place at December 31, 20X1. Atwood issued
50 shares of its common stock with a fair value of $35 per share
for all of the outstanding common shares of Franz. Stock issuance
costs of $15 (in thousands) and...
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...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018 Penske $ (796, 000) Stanza $632,000) Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/18 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital 284,100 153,000 158,000 258,000 Not given 80,000 (606, 000) 408,000 974,000 646,000 60,000 (362,000) 612,000 519,00 1,004,000 Not given (570,000) (1,337,000) (600,000) ($20 par) (200,000) ($10 par) (150,000) (80,000) Note:...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:...
Following are selected account balances from Penske Company and
Stanza Corporation as of December 31, 2018:
Penske
Stanza
Revenues
$
(766,000
)
$
(724,000
)
Cost of goods sold
273,100
181,000
Depreciation expense
216,000
266,000
Investment income
Not given
0
Dividends declared
80,000
60,000
Retained earnings, 1/1/18
(790,000
)
(244,000
)
Current assets
506,000
660,000
Copyrights
964,000
532,500
Royalty agreements
668,000
1,186,000
Investment in Stanza
Not given
0
Liabilities
(684,000
)
(1,637,500
)
Common stock
(600,000
)
($20 par)
(200,000...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31,...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: $ Stanza $ (556,000) 139,000 262,000 Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske (776,000) 276,600 171,000 Not given 80,000 (658,000) 510,000 1,010,000 682,000 Not given (592,000) (600,000) ($20 par) (150,000) 60,000 (394,000) 514,000 378,500 1,118,000 0 (1,241,500) (200,000) ($10 par) (80,000)...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31,...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Penske Revenues $ (708,000) Cost of goods sold 252,800 Depreciation expense 159,000 Investment income Not given Dividends declared 80,000 Retained earnings, 1/1/21 (758,000) Current assets 400,000 Copyrights 1,060,000 Royalty agreements 690,000 Investment in Stanza Not given Liabilities (690,000) Common stock (600,000) ($20 par) Additional paid-in capital (150,000) Note: Parentheses indicate a credit balance. Stanza $ (632,000) 158,000 210,000 @ 60,000 (206,000) 536,000 419,000...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Stanza (632,000) 158,000 258,000 Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/18 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske (796, 000) 284,100 153, eee Not given 80,000 (686,000) 408, eee 974,000 646,000 Not given (570,000) (600,000) ($20 par) (150,000) 60,000 (362,000) 612, eee 519, eee 1,004,000 (1,337, eee) (200,000) ($10...
The condensed financial statements for OIL Inc. and ERS Company for the year ended December 31,...
The condensed financial statements for OIL Inc. and ERS Company for the year ended December 31, Year 5, follow: OIL ERS Revenues $ 945,000 $ 330,000 Expenses 675,000 215,000 Net income $ 270,000 $ 115,000 Retained earnings, 1/1/Year 5 $ 815,000 $ 215,000 Net income 270,000 115,000 Dividends paid 105,000 0 Retained earnings, 12/31/Year 5 $ 980,000 $ 330,000 Cash $ 95,000 $ 125,000 Receivables and inventory 415,000 185,000 Patented technology (net) 915,000 322,500 Equipment (net) 715,000 615,000 Total assets...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:...
Following are selected account balances from Penske Company and
Stanza Corporation as of December 31, 2018:
On January 1, 2018, Penske acquired all of Stanza’s outstanding
stock for $816,000 fair value in cash and common stock. Penske also
paid $10,000 in stock issuance costs. At the date of acquisition
copyrights (with a six-year remaining life) have a $516,000 book
value but a fair value of $600,000.
As of December 31, 2018, what is the consolidated copyrights
balance?
For the year...
13 On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,848,960 in cash...
13 On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,848,960 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $462,240. Seidel's acquisition-date total book value was $1,836,000. 10 points The fair value of Seidel's recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets- a trademark with an indefinite life and estimated fair value of $264,600 and several customer relationships estimated to be worth...
13-16. The financial balances for the Atwood Company and the
Franz Company as of December 31, 20X1, are presented below. Also
included are the fair values for Franz Company's net assets.
Parenthesis indicate a credit balance. Assume an acquisition
business combination took place at December 31, 20X1. Atwood issued
50 shares of its common stock with a fair value of $35 per share
for all of the outstanding common shares of Franz. Stock issuance
costs of $15 (in thousands) and...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018 Penske $ (796, 000) Stanza $632,000) Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/18 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital 284,100 153,000 158,000 258,000 Not given 80,000 (606, 000) 408,000 974,000 646,000 60,000 (362,000) 612,000 519,00 1,004,000 Not given (570,000) (1,337,000) (600,000) ($20 par) (200,000) ($10 par) (150,000) (80,000) Note:...
Following are selected account balances from Penske Company and
Stanza Corporation as of December 31, 2018:
Penske
Stanza
Revenues
$
(766,000
)
$
(724,000
)
Cost of goods sold
273,100
181,000
Depreciation expense
216,000
266,000
Investment income
Not given
0
Dividends declared
80,000
60,000
Retained earnings, 1/1/18
(790,000
)
(244,000
)
Current assets
506,000
660,000
Copyrights
964,000
532,500
Royalty agreements
668,000
1,186,000
Investment in Stanza
Not given
0
Liabilities
(684,000
)
(1,637,500
)
Common stock
(600,000
)
($20 par)
(200,000...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: $ Stanza $ (556,000) 139,000 262,000 Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske (776,000) 276,600 171,000 Not given 80,000 (658,000) 510,000 1,010,000 682,000 Not given (592,000) (600,000) ($20 par) (150,000) 60,000 (394,000) 514,000 378,500 1,118,000 0 (1,241,500) (200,000) ($10 par) (80,000)...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Penske Revenues $ (708,000) Cost of goods sold 252,800 Depreciation expense 159,000 Investment income Not given Dividends declared 80,000 Retained earnings, 1/1/21 (758,000) Current assets 400,000 Copyrights 1,060,000 Royalty agreements 690,000 Investment in Stanza Not given Liabilities (690,000) Common stock (600,000) ($20 par) Additional paid-in capital (150,000) Note: Parentheses indicate a credit balance. Stanza $ (632,000) 158,000 210,000 @ 60,000 (206,000) 536,000 419,000...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Stanza (632,000) 158,000 258,000 Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/18 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske (796, 000) 284,100 153, eee Not given 80,000 (686,000) 408, eee 974,000 646,000 Not given (570,000) (600,000) ($20 par) (150,000) 60,000 (362,000) 612, eee 519, eee 1,004,000 (1,337, eee) (200,000) ($10...
Following are selected account balances from Penske Company and
Stanza Corporation as of December 31, 2018:
On January 1, 2018, Penske acquired all of Stanza’s outstanding
stock for $816,000 fair value in cash and common stock. Penske also
paid $10,000 in stock issuance costs. At the date of acquisition
copyrights (with a six-year remaining life) have a $516,000 book
value but a fair value of $600,000.
As of December 31, 2018, what is the consolidated copyrights
balance?
For the year...
13 On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,848,960 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $462,240. Seidel's acquisition-date total book value was $1,836,000. 10 points The fair value of Seidel's recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets- a trademark with an indefinite life and estimated fair value of $264,600 and several customer relationships estimated to be worth...
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