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QUESTION 14 All Company acquired Khalifa Company in a statutory merger. In payment, All Co.Issued 100,000...
QUESTION 14 All Company acquired Khalifa Company in a statutory merger. In payment, All Co. Issued...
QUESTION 14 All Company acquired Khalifa Company in a statutory merger. In payment, All Co. Issued 100,000 shares of $3 par share capital. At the time of the merger, All Company stock was selling for $10 per share. To negotiate the transaction, All Co. also paid various merger costs totalling 50,000. To register the new stock issue, All Company paid required registration fees of 15,000. On the acquisition date, balance sheet amounts for both All Company and Khalifa Company are...
1. On 12/31, Choco acquired all assets and liabilities of Cake by issuing 40,000 shares of...
1. On 12/31, Choco acquired all assets and liabilities of Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share and this combination is a statutory merger (Cake was dissolved). Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding Choco Book Values Cake Book Values Cake Fair Values Cash and Receivable 350,000 180,000 170,000 Inventories 250,000 100,000 150,000 Land 700,000 120,000 240,000 Building and...
On January 1, Richard Company acquired all the net assets of Ulmer Company by issuing debt...
On January 1, Richard Company acquired all the net assets of Ulmer Company by issuing debt with a market value of $350,000 and a payment of cash of $300,000. The fair value of Ulmer's identifiable net assets equaled their book values except for buildings and equipment which had a fair value of $120,000 greater than book value. Balance sheets for the two companies immediately preceding the acquisition were as follows: Richard Co. Ulmer Co. Cash $400,000 $150,000 Building & Equipment...
1. On 12/31, Choco acquired all assets and liabilities of Cake by issuing 40,000 shares of...
1. On 12/31, Choco acquired all assets and liabilities of Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share and this combination is a statutory merger (Cake was dissolved). Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding Choco Book Values Cake Book Values Cake Fair Values Cash and Receivable 350,000 180,000 170,000 Inventories 250,000 100,000 150,000 Land 700,000 120,000 240,000 Building and...
Post-Combination Balance Sheet: Merger and Stock Acquisition Presented below are the LO1 balance sheets of Allen...
Post-Combination Balance Sheet: Merger and Stock Acquisition Presented below are the LO1 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. Allen Corp. Benson Corp Cash.. . $1.000,000 600,000 1,200,000 50,000 150,000 400,000 Total assets Current liabilities. $2,800,000 $600,000 . .. . . 300,000 600,000 200,000 900,000 800,000 $100,000 250,000...
Pepper Company, which is a calendar-year-reporting company, purchased 100% of the common stock of Salt Inc....
Pepper Company, which is a calendar-year-reporting company, purchased 100% of the common stock of Salt Inc. for $325,000 on 12/31/15. Pepper declared dividends of $80,000 and Salt declared dividends of $10,000 during 2015. Each company's financial statements for the year ended 12/31/15 immediately after the acquisition are as follows: Income Statement (2015) Sales Cost of sales Expenses Net Income Pepper Co. (900,000) 500,000 260,000 (140,000) Salt Co. (500,000) 250,000 202,000 (48,000) 20,000 70,000 80,000 Balance Sheet (as of 12/31/15) Cash...
Sub Co. Sub Co Book Value Fair Valu 500,000 400.000 100.000 250,000 100,000 (50,000) 300,000 10....
Sub Co. Sub Co Book Value Fair Valu 500,000 400.000 100.000 250,000 100,000 (50,000) 300,000 10. On December 31, 2020, Parent Co acquired all of the assets and liabilities of Sub Co in a statutory merger. Parent Co paid $400,000 in cash along Sales with 15,000 shares with a par value of $1 and a Expenses current fair value of $10 per share. There were Net Income $10,000 in legal fees paid in connection to the acquisition and $1,000 paid...
Answer to both parts of the question, "Prepare the acquisition entry and the balance sheet" Post-Combination...
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...
(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...
Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017....
Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $450,000 in cash and issued 104,000 shares of its own $1 par value common stock. On this date, Francisco's stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran's assets and liabilities are assigned to a new reporting unit. The following reports the fair values for...
QUESTION 14 All Company acquired Khalifa Company in a statutory merger. In payment, All Co. Issued 100,000 shares of $3 par share capital. At the time of the merger, All Company stock was selling for $10 per share. To negotiate the transaction, All Co. also paid various merger costs totalling 50,000. To register the new stock issue, All Company paid required registration fees of 15,000. On the acquisition date, balance sheet amounts for both All Company and Khalifa Company are...
Post-Combination Balance Sheet: Merger and Stock Acquisition Presented below are the LO1 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. Allen Corp. Benson Corp Cash.. . $1.000,000 600,000 1,200,000 50,000 150,000 400,000 Total assets Current liabilities. $2,800,000 $600,000 . .. . . 300,000 600,000 200,000 900,000 800,000 $100,000 250,000...
Pepper Company, which is a calendar-year-reporting company, purchased 100% of the common stock of Salt Inc. for $325,000 on 12/31/15. Pepper declared dividends of $80,000 and Salt declared dividends of $10,000 during 2015. Each company's financial statements for the year ended 12/31/15 immediately after the acquisition are as follows: Income Statement (2015) Sales Cost of sales Expenses Net Income Pepper Co. (900,000) 500,000 260,000 (140,000) Salt Co. (500,000) 250,000 202,000 (48,000) 20,000 70,000 80,000 Balance Sheet (as of 12/31/15) Cash...
Sub Co. Sub Co Book Value Fair Valu 500,000 400.000 100.000 250,000 100,000 (50,000) 300,000 10. On December 31, 2020, Parent Co acquired all of the assets and liabilities of Sub Co in a statutory merger. Parent Co paid $400,000 in cash along Sales with 15,000 shares with a par value of $1 and a Expenses current fair value of $10 per share. There were Net Income $10,000 in legal fees paid in connection to the acquisition and $1,000 paid...
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...
Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $450,000 in cash and issued 104,000 shares of its own $1 par value common stock. On this date, Francisco's stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran's assets and liabilities are assigned to a new reporting unit. The following reports the fair values for...
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