Advanced Financial Accounting
On January 1, 2020, Falcon Corporation acquired Pigeon Corporation's net assets by paying €350,000 cash. Balance sheet data for the Falcon & Pigeon and fair value information for Pigeon immediately before the business combination are given below: Falcon Pigeon Book Value Book Value Fair Value Cash €500,000 €120,000 €120,000 Notes receivable 120,000 32,000 32,000 Inventory 190,000 145,000 166,000 Plant, Property and Equipment 530,000 350,000 240,000 Less: Accumulated Depreciation -240,000 -150,000 Total Assets €1,100,000 €497,000 €558,000 Accounts Payable €155,000 €135,000 €135,000 Notes Payable 330,000 150,000 150,000 Bonds payable 100,000 50,000 50,000 Common Stock 30,000 20,000 Additional Paid-in Capital 240,000 55,000 Retained Earnings 245,000 87,000 Total Liabilities and Equities €1,100,000 €497,000 Required: a. Prepare the journal entry to record the acquisition of Pigeon Corporation. b. What would the balance of inventory be in the balanced sheet of combined company immediately after the combination? c. What would the balance of Common stock be in the balanced sheet of combined company immediately after the combination?
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1) On January 1, 20X8, Nebraska Corporation acquired Mercantile Corporation's net assets by paying $190,000 cash....
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Question Information: Submission Format: E3-17 Subsidiary Acquired at Net Book Value LO 3-4, 3-5 On December...
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E3-17 Subsidiary Acquired at Net Book Value LO 3-4, 3-5 On December 31, 20X8, Paragraph Corporation acquired 80 percent of Sentence Company's common stock for $136,000. At the acquisition date, the book values and fair values of all of Sentence's assets and liabilities were equal. Paragraph uses the equity method in accounting for its investment. Balance sheet information provided by the companies at December 31, 20X8, immediately following the acquisition is as follows: page 129 Paragraph...
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Octane Company and Bio Company have announced terms of an exchange agreement under which Octane will...
Octane Company and Bio Company have announced terms of an
exchange agreement under which Octane will issue 10,000 shares of
its $5 par value common stock to acquire all of Bio's assets.
Octane shares are trading at $28, and Bio's $10 par value shares
are trading at $15. Historical cost and fair value balance sheet
data on January 1, 2008, are as follows:
12. Based on the information provided, what amount will be
reported immediately following the business combination for...
Question Information Submission Format: Please answer the question in the submission format and fill out all...
Question Information
Submission Format:
Please answer the question in the submission format and fill out
all sections. Thank you!
E3-17 Subsidiary Acquired at Net Book Value LO 3-4, 3-5 On December 31, 20X8, Paragraph Corporation acquired 80 percent of Sentence Company's common stock for $136,000. At the acquisition date, the book values and fair values of all of Sentence's assets and liabilities were equal. Paragraph uses the equity method in accounting for its investment. Balance sheet information provided by the...
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Question Information:
Submission Format:
E3-17 Subsidiary Acquired at Net Book Value LO 3-4, 3-5 On December 31, 20X8, Paragraph Corporation acquired 80 percent of Sentence Company's common stock for $136,000. At the acquisition date, the book values and fair values of all of Sentence's assets and liabilities were equal. Paragraph uses the equity method in accounting for its investment. Balance sheet information provided by the companies at December 31, 20X8, immediately following the acquisition is as follows: page 129 Paragraph...
Octane Company and Bio Company have announced terms of an
exchange agreement under which Octane will issue 10,000 shares of
its $5 par value common stock to acquire all of Bio's assets.
Octane shares are trading at $28, and Bio's $10 par value shares
are trading at $15. Historical cost and fair value balance sheet
data on January 1, 2008, are as follows:
12. Based on the information provided, what amount will be
reported immediately following the business combination for...
Question Information
Submission Format:
Please answer the question in the submission format and fill out
all sections. Thank you!
E3-17 Subsidiary Acquired at Net Book Value LO 3-4, 3-5 On December 31, 20X8, Paragraph Corporation acquired 80 percent of Sentence Company's common stock for $136,000. At the acquisition date, the book values and fair values of all of Sentence's assets and liabilities were equal. Paragraph uses the equity method in accounting for its investment. Balance sheet information provided by the...
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