So you have asked part a acquisition entries , answer is as follows:
a. | ||
1)merger | ||
cash | $ 50,000 | |
Other current assets | $ 150,000 | |
Property,plant and equipment | $ 400,000 | |
Identifiable intangibles | $ 200,000 | |
goodwill(plug) | $ 350,000 | |
Current liabilities | $ 100,000 | |
Long term liabilities | $ 250,000 | |
Cash | $ 800,000 | |
2)Acquisition | ||
Investment in Benson | $ 800,000 | |
Cash | $ 800,000 |
Post-Combination Balance Sheet: Merger and Stock Acquisition Presented below are the LO1 balance sheets of Allen...
Answer to both parts of the question, "Prepare the acquisition entry and the balance sheet" Post-Combination Balance Sheet: Merger and Stock Acquisition Presented below are the balance sheets of Allen Corporation and Benson Corporation, immediately prior to a business combina- tion. The fair values of Benson's reported net assets equal their book values, and previously unreported identifiable intangible assets have a fair value of $200.000 LO1 Allen Corp. Benson Corp. Cash. . 600,000 ..1,200,000 $2,800,000 50,000 150,000 400,000 Total assets...
(Please answer both parts of question A “prepare the acquisition entry and the balance sheet”) Post-Combination Balance Sheet: Merger and Stock Acquisition Presented below are the balance sheets of Allen Corporation and Benson Corporation tion. The fair values of Benson's reported net assets equal their book values, and previously unreported identifiable intangible assets have a fair value of $200.000. LO 1 , immediately prior to a business combina- Allen Corp Benson Corp. 50,000 Cash Other current assets. $1,000,000 600,000 1,200,000...
Mergers and Acquisiions Axtel, Inc. Barcel, Inc. Book Value 50,000 50,000 $200,000 Fair Value $25,000 175,000 Book Value Fair Value Current assets Property, plant and equipment..200,000 40,000 $100,000 400,000 Total assets . $240,000 . . $70,000 30,000 80,000 90,000 60,000 30,000 10,000 $200,000 Previously unreported identifiable intangibles, capitalized per GAAP, are: Axtel, Inc. $25,000 Barcel, Inc. 20,000 Required Prepare the balance sheet of the acquiring firm following each of the following business combinations: (1) Axtel borrows $250,000 on a long-term...
Consolidation at date of acquisition (purchase price equals book value) 59. Consolidation at date of acquisition (purchase price equals book value) A parent company acquires its subsidiary by exchanging 30,000 shares of its Common Stock, with a fair value on the acquisition date of $20 per share, for all of the outstanding voting shares of the investee. a. What is the total fair value of the subsidiary on the acquisition date? b. Prepare the consolidation entry or entries on the...
Corporations on January 1, 2017, just before they entered into a business combination: 13 The following Statement of Financial Position were prepared for Red and Blue So Problem 13-6 Blue Corporation Fair Value P 50,000 245,000 250,000 Items Cash and Receivables Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets Red Corporation Book Value Fair value Book Value P 300,000 P 300,000 P 50,000 400,000 600,000 100,000 800,000 870,000 300,000 ( 200,000) ( 150,000) P1,300,000 P1,770,000 P300,000 P545,000 P 100,000...
On January 1, 20X5, Zebb and Nottle Companies had condensed balance sheets as shown below: Current Assets Plant and Equipment Zebb Company $1,000,000 1,500,000 $2,500,000 Nottle Company $ 600,000 800,000 $1,400,000 Current Liabilities Long-Term Debt Common Stock, $10 par Paid-in Capital in Excess of Par Retained Earnings $ 200,000 300,000 1,400,000 $ 100,000 300,000 400,000 100,000 500.000 $1,400,000 0 600,000 $2.500.000 Required: Record the acquisition of Nottle's net assets, the issuance of the stock and/or payment of cash, and payment...
Dr. Pepper Snapple Group (DPSG) acquired the assets and liabilities of Turquoise Water Inc. on September 30, 2020, in a merger. The acquisition involves the following payments: Cash paid to Turquoise Water shareholders $85,000,000 Cash paid to Morgan Stanley for consulting services 12,000,000 New stock issued, 100,000 shares, $0.50 par, fair value at acquisition 5,000,000 Stock registration fees, paid in cash 600,000 Earnings contingency, to be paid in three years, present value 2,000,000 Turquoise Water’s...
Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately following the acquisition follows: Item Pace Corporation Spin Company Cash $ 30,000 $ 25,000 Accounts Receivable 80,000 40,000 Inventory 150,000 55,000 Land 65,000 40,000 Buildings and Equipment 260,000 160,000 Less: Accumulated Depreciation (120,000 ) (50,000 ) Investment in Spin Company Stock 150,000 Total Assets $ 615,000 $ 270,000 Accounts Payable $45,000 $33,000 Taxes Payable 20,000 8,000 Bonds Payable...
EXERCISE 2‐2 Acquisition Method LO 6 The balance sheets of Petrello Company and Sanchez Company as of January 1, 2019, are presented below. On that date, after an extended period of negotiation, the two companies agreed to merge. To effect the merger, Petrello Company is to exchange its unissued common stock for all the outstanding shares of Sanchez Company in the ratio of 1/212 share of Petrello for each share of Sanchez. Market values of the shares were agreed on...
P1-5 Journal entries and balance sheet for an acquisition Ling Corporation decided to acquire all of Huang Corporation's voting common stock on January 1, 2017. The purchase price consisted of $10,000 for the registering and issuing of 10,000 shares of Ling Corporation. The market value of the issuance of these shares is $300,000. The purchase price also includes $30,000 for accounting and legal fees. However, Ling is undecided on the additional amount of cash to be paid. Balance sheet information...