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14. A company acquires the assets and liabilities of another company. The fair value of the...
A company acquires the assets and liabilities of another company.
A company acquires the assets and liabilities of another company. The fair value of the acquired company's identifiable net assets is $8,000,000 The acquisition transaction includes the following: $7,000,000 in cash paid to the former owners of the acquired company 125,000 new shares of stock with a market value $55/share. Registration fees, paid in cash, were $1,000,000 .$3,000,000 in cash paid to the underwriter for consulting services Earnings contingency with an expected present value of $2.000,000 at the date of acquisition Goodwill for this...
12. When a private company acquires another company, GMP for private companies allows which identifiable intangible...
12. When a private company acquires another company, GMP for private companies allows which identifiable intangible assets to be combined with goodwill and not separately capitalized! Brand names b. Technology Software licenses d. Noncompetition agreements d. . Textbook page number that supports your answer: 13. Company A has unreported identifiable intangible assets that are very valuable, and would like investors to know about them. Which one of the following actions will allow these intangible assets to be reported? a. Get...
17. Pell Corporation acquires all of the assets and liabilities of Sason Co. at an acquisition...
17. Pell Corporation acquires all of the assets and liabilities of Sason Co. at an acquisition cost that is $50 million above the fair value of identifiable net assets acquired. Three months after the acquisition, land belonging to Sason at the date of acquisition is discovered. The land has a fair value of $5,000,000 Using the T-account template below, prepare the entry, if any, to recognize this new information. LIABILITIES + EQUITY ASSETS Non-current Assets Property, Plant & Intangible Equipment...
A company acquires all of the assets and liabilities of another company. Which statement is false?...
A company acquires all of the assets and liabilities of another company. Which statement is false? A. The acquiring company does not report acquired intangible assets unless they are already reported on the acquired company's books. B. The acquired company no longer exists as a separate entity. C. The acquiring company reports the acquired assets and liabilities at fair value at the date of acquisition. D. The acquiring company does not revalue its assets and liabilities to fair value at...
Dr. Pepper Snapple Group (DPSG) acquired the assets and liabilities of Turquoise Water Inc. on September...
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...
15. A U.S. company acquires 65% of another company. The acquisition includes the following items: 10,000...
15. A U.S. company acquires 65% of another company. The acquisition includes the following items: 10,000 shares of new stock issued to the former shareholders of the acquired company, fair value $40/share $5/share in cash paid to the former shareholders of the acquired company, 25,000 shares acquired Registration fees for the stock, $2,000, paid in cash Legal and consulting fees, $3,000, paid in cash $5,000 in severance pay to former employees of the acquired company Vested stock options issued to...
Kelly Corporation acquires all of the assets and liabilities of Lawson Co. at an acquisition cost...
Kelly Corporation acquires all of the assets and liabilities of Lawson Co. at an acquisition cost that is $50 million above the fair value of identifiable net assets acquired. Three months after the acquisition, it is determined that because of a downturn in the economy after the acquisition, acquired brand names with indefinite lives are worth $5,000,000 less than originally estimated. The entry to reflect this new information includes: A. A credit to goodwill of $5,000,000 B. A debit to...
Global Car Corporation acquires off the stock of Parts Company and reports the acquisition as a...
Global Car Corporation acquires off the stock of Parts Company and reports the acquisition as a stock investment on its own books. The acquisition involves the following payments Cash paid to Parts Company Shareholders Cash paid to consultants and lawyers Fair value of new Global Car Corporation stock issued Stock registration fees, paid in cash Fair value of earnings contingency (If paid, will occur 3 years subsequent to acquisition) $5,000,000 1,200,000 36,000,000 900,000 250,000 1000 Shares $2 Par Global Car...
Global Car Corporation acquires off the stock of Parts Company and reports the acquisition as a...
Global Car Corporation acquires off the stock of Parts Company and reports the acquisition as a stock investment on its own books. The acquisition involves the following payments Cash paid to Parts Company Shareholders Cash paid to consultants and lawyers Fair value of new Global Car Corporation stock issued Stock registration fees, paid in cash Fair value of earnings contingency (If paid, will occur 3 years subsequent to acquisition) $5,000,000 1,200,000 36,000,000 900,000 250,000 1000 Shares $2 Par Global Car...
X Company acquires all of Y Company's assets and liabilities for $15,000,000 in cash. The fair...
X Company acquires all of Y Company's assets and liabilities for $15,000,000 in cash. The fair values of Y's assets and liabilities approximate their book values, except Y has developed technology valued at $8,000,000 that is not reported on its balance sheet, and its buildings are overvalued by $7,000,000. Here is Y's balance sheet just prior to the acquisition: Y Company Current assets $ 500,000 Land, buildings, and equipment 9,500,000 Total assets $10,000,000 Liabilities $ 6,000,000 Common stock, $1 par...
12. When a private company acquires another company, GMP for private companies allows which identifiable intangible assets to be combined with goodwill and not separately capitalized! Brand names b. Technology Software licenses d. Noncompetition agreements d. . Textbook page number that supports your answer: 13. Company A has unreported identifiable intangible assets that are very valuable, and would like investors to know about them. Which one of the following actions will allow these intangible assets to be reported? a. Get...
17. Pell Corporation acquires all of the assets and liabilities of Sason Co. at an acquisition cost that is $50 million above the fair value of identifiable net assets acquired. Three months after the acquisition, land belonging to Sason at the date of acquisition is discovered. The land has a fair value of $5,000,000 Using the T-account template below, prepare the entry, if any, to recognize this new information. LIABILITIES + EQUITY ASSETS Non-current Assets Property, Plant & Intangible Equipment...
15. A U.S. company acquires 65% of another company. The acquisition includes the following items: 10,000 shares of new stock issued to the former shareholders of the acquired company, fair value $40/share $5/share in cash paid to the former shareholders of the acquired company, 25,000 shares acquired Registration fees for the stock, $2,000, paid in cash Legal and consulting fees, $3,000, paid in cash $5,000 in severance pay to former employees of the acquired company Vested stock options issued to...
Global Car Corporation acquires off the stock of Parts Company and reports the acquisition as a stock investment on its own books. The acquisition involves the following payments Cash paid to Parts Company Shareholders Cash paid to consultants and lawyers Fair value of new Global Car Corporation stock issued Stock registration fees, paid in cash Fair value of earnings contingency (If paid, will occur 3 years subsequent to acquisition) $5,000,000 1,200,000 36,000,000 900,000 250,000 1000 Shares $2 Par Global Car...
Global Car Corporation acquires off the stock of Parts Company and reports the acquisition as a stock investment on its own books. The acquisition involves the following payments Cash paid to Parts Company Shareholders Cash paid to consultants and lawyers Fair value of new Global Car Corporation stock issued Stock registration fees, paid in cash Fair value of earnings contingency (If paid, will occur 3 years subsequent to acquisition) $5,000,000 1,200,000 36,000,000 900,000 250,000 1000 Shares $2 Par Global Car...
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