Question

18. Parkland buys all of Sander Company's assets and liabilities. Sander balance sheet at the date of acquisition, including fair value information on its reported assets and liabilities, is as follows: Book Value Fair Value Dr (C) Dr (Cr) Assets Cash, receivables $ 1,000,000 950.000 Inventories 5,000,000 4,000,000 Property and equipment 60.000.000 45.000.000 Total assets $ 66,000,000 Liabilities & Equity Accounts and notes payable $ 30,000,000 29,000,000 Common stock 500,000 Additional paid-in capital 15.000.000 Retained earnings 20.500.000 Total liabilities and equity $ 66,000,000 Assets and liabilities attributed to Sander, not currently reported on its books are: Favorable leaseholds Brand names In-process R&D Warranty liabilities Fair value S 3,000,000 9,500,000 1,000,000 1,800,000 . In addition, a deferred tax liability of $2,000,000 is recognized as part of the acquisition The acquisition terms are as follows: Parkland paid Sander' shareholders a total of $25,000,000 in cash. Parkland issued a total of 2,000,000 new shares of its common stock to Sander shareholders. Parkland's shares have a par value of $1/share and a total fair value of $92,000,000. Parkland paid $900,000 in cash for registration fees to issue the shares, Parkland paid $1,000,000 to a brokerage company for merger advisement, all paid in cash. . Using the attached T-account template, prepare the journal entry to record this acquisition on Parkland's books.

Answer 1

Solution : P. Noi As per the given date about parkland buys all of Sandley Companys avels & liabilities... Parkland's Book Journal Entry towarde acquisition – Accounts Title Debit ($) Coedit ($) Cash & Receivables 950,000 Inventories 4,000,000 Property and equipment 45,000,000 favolable leareholds 3,000,000 Brand names 9500,000 R&D 1,000,000 20. proces Registration fees Goodwill expo 900,000 58,350,000 Accounts & Notes payable 9900,000

P. 2 1800,000 Warranty liabilities Deferred tax liability 2,000,000 Cash 25,000,000 Common stock 2,000,000 Additional paid in Capital 90,000,000 ( Assets and liabeloties acquired and acquisition amount paid in Cash and Stock. Goodwill Created please give me a positive like. It's helps any queries Comment below. To me lot