Homework Answers
Both Plant and equipment and Long term debt are to be carried as per the carrying amount of Sock co even though it paid excess amount than the fair value of net assets. Excess amount paid will be recorded as Goodwill and all assets and liabilities are carried at carrying value.
Answer is Plant and equipment - Carrying amount, Long term debt - Carrying amount.
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ShoeCorp acquired all of the outstanding common stock of SockCo in exchange for cash. The consideration...
ShoeCorp acquired all of the outstanding common stock of SockCo in exchange for cash. The consideration...
ShoeCorp acquired all of the outstanding common stock of SockCo in exchange for cash. The consideration transferred exceeds the acquisition- date fair value of the net assets acquired. How should ShoeCorp determine the amounts to be reported for the plant and equipment and long-term debt acquired from SockCo? Plant and equipment: SockCo's carrying amount; long-term debt: SockCo's carrying amount O Plant and equipment: SockCo's carrying amount; long-term debt: fair value Plant and equipment: fair value; long-term debt: fair value Plant...
The Smithson Corporation acquired all of the outstanding common stock of the Rider Corporation in exchange...
The Smithson Corporation acquired all of the outstanding common stock of the Rider Corporation in exchange for $180 million cash. Smithson assumed all of Rider’s long-term liabilities, which have a fair value of $120 million at the date of acquisition. The fair values of all identifiable assets of Rider are as follows: receivables of $50 million, inventory of $70 million, property, plant, and equipment of $90 million, and patent of $40 million). What is the cost of the goodwill resulting...
Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12,560,000 in cash....
Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12,560,000 in cash. The book value of Smith’s net assets (assets minus liabilities) was $9,100,000. The fair values of all of Smith’s assets and liabilities were equal to their book values with the following exceptions: Book Value Fair Value Receivables $ 2,600,000 $ 2,270,000 Property, plant, and equipment 9,300,000 10,830,000 Intangible assets 330,000 1,460,000 1. Required: Calculate the amount paid for goodwill.____________________?
$ Sean 72, 38,800 44,099 262,000 BALANCE SHEETS December 31, 2017 Patrick Cash 74,000 Accounts receivable...
$ Sean 72, 38,800 44,099 262,000 BALANCE SHEETS December 31, 2017 Patrick Cash 74,000 Accounts receivable (net) 146,000 Inventories 82,000 Plant and equipment (net) 640,089 Investment in Sean 476,000 Total assets $ 1,418,800 Accounts payable 168,888 Long-term debt 120,000 Common stock ($10 par) 332,000 Additional paid-in capital Retained earnings 806, 889 Total liabilities and shareholders' 1,418,000 equity $ 416,00 94,000 38,000 54,000 14,000 216,000 S 416,000 Additional Information: . On December 31, 2017, Patrick acquired 100 percent of Sean's voting...
On January 1, 2018 Casey Corporation exchanged $3,252,000 cash for 100 percent of the outstanding voting stock of Kenned...
On January 1, 2018 Casey Corporation exchanged $3,252,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) $ 3,252,000 Carrying amount acquired 2,600,000 Excess fair value $ 652,000 to buildings (undervalued) $ 331,000 to licensing agreements (overvalued) (152,000 ) 179,000 to goodwill...
On January 1, 2018 Casey Corporation exchanged $3,209,000 cash for 100 percent of the outstanding voting stock of Kenned...
On January 1, 2018 Casey Corporation exchanged $3,209,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) $ 3,209,000 Carrying amount acquired 2,600,000 Excess fair value $ 609,000 to buildings (undervalued) $ 326,000 to licensing agreements (overvalued) (198,000 ) 128,000 to goodwill...
Mainline Produce Corporation acquired all the outstanding common stock of iceberg Lettuce Corporation for $39.000.000 in...
Mainline Produce Corporation acquired all the outstanding common stock of iceberg Lettuce Corporation for $39.000.000 in cash The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $14,88e, eee 28. zee.eee 4.8ee.eee 9.280.eas 14,889,808 Fair Value $17,980, 34,200,000 5,880.800 9.229.99 13,800,000 Required: Calculate the amount paid for goodwill. (Enter your answer in millions (.e. 5,000,000 should be entered as 5).) Amount paid...
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation...
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,000,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $ 7,000,000 12,000,000 1,100,000 5,000,000 7,000,000 Fair Value $ 8,500,000 15,000,000 1,600,000 5,000,000 6,500,000 Required: Calculate the amount paid for goodwill. Goodwill
On March 31, 2018, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation...
On March 31, 2018, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,400,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 6,400,000 $ 7,900,000 Property, plant, and equipment 11,400,000 14,400,000 Other assets 1,040,000 1,540,000 Current liabilities 4,400,000 4,400,000 Long-term liabilities 6,400,000 5,900,000 Required: Calculate the amount paid for goodwill.
New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $69,800 in...
New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $69,800 in cash. The book values and fair values of Red Rock's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $25,100 47,600 3,300 14,500 25,400 Fair Value $24,000 52,000 5,900 13,300 21,700 Calculate the amount paid for goodwill. Goodwill
ShoeCorp acquired all of the outstanding common stock of SockCo in exchange for cash. The consideration transferred exceeds the acquisition- date fair value of the net assets acquired. How should ShoeCorp determine the amounts to be reported for the plant and equipment and long-term debt acquired from SockCo? Plant and equipment: SockCo's carrying amount; long-term debt: SockCo's carrying amount O Plant and equipment: SockCo's carrying amount; long-term debt: fair value Plant and equipment: fair value; long-term debt: fair value Plant...
$ Sean 72, 38,800 44,099 262,000 BALANCE SHEETS December 31, 2017 Patrick Cash 74,000 Accounts receivable (net) 146,000 Inventories 82,000 Plant and equipment (net) 640,089 Investment in Sean 476,000 Total assets $ 1,418,800 Accounts payable 168,888 Long-term debt 120,000 Common stock ($10 par) 332,000 Additional paid-in capital Retained earnings 806, 889 Total liabilities and shareholders' 1,418,000 equity $ 416,00 94,000 38,000 54,000 14,000 216,000 S 416,000 Additional Information: . On December 31, 2017, Patrick acquired 100 percent of Sean's voting...
Mainline Produce Corporation acquired all the outstanding common stock of iceberg Lettuce Corporation for $39.000.000 in cash The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $14,88e, eee 28. zee.eee 4.8ee.eee 9.280.eas 14,889,808 Fair Value $17,980, 34,200,000 5,880.800 9.229.99 13,800,000 Required: Calculate the amount paid for goodwill. (Enter your answer in millions (.e. 5,000,000 should be entered as 5).) Amount paid...
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,000,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $ 7,000,000 12,000,000 1,100,000 5,000,000 7,000,000 Fair Value $ 8,500,000 15,000,000 1,600,000 5,000,000 6,500,000 Required: Calculate the amount paid for goodwill. Goodwill
New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $69,800 in cash. The book values and fair values of Red Rock's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $25,100 47,600 3,300 14,500 25,400 Fair Value $24,000 52,000 5,900 13,300 21,700 Calculate the amount paid for goodwill. Goodwill
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