Price Company issued 8,220 shares of its $20 par value common stock for the net assets of Sims Company in a business combination under which Sims Company will be merged into Price Company. Although the questions are correct, my question is how do I solve part "B"?
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Price Company issued 8,220 shares of its $20 par value common
stock for the net assets...
HC Corporation issued 7,000 shares of its $2 par value common stock at a market price...
HC Corporation issued 7,000 shares of its $2 par value common stock at a market price of $15 per share to acquire all the outstanding common stock of Barry Corporation. HC paid $2,000 of legal fees for this business combination and $700 for issuing the securities. Barry was merged into HC and dissolved. Information for Barry Corporation immediately before the merger was as follows: Book value Fair value Cash 2,000 2,000 Building 30,000 27,000 Patents 8,000 Total...
On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common stock (current...
On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common stock (current fair value $14 a share) for 36,000 shares of the outstanding $10 par common stock of Bahrain Company. The $100,000 out-of-pocket costs of the business combination paid by Manama on December 31, 2019, were allocable as follows: 45% to finders, legal, and accounting fees directly related to the business combination: 55% to the SEC registration statement for Manama’s common stock issued in the businesses...
On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common stock (current...
On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common stock (current fair value $14 a share) for 36,000 shares of the outstanding $10 par common stock of Bahrain Company. The $100,000 out-of-pocket costs of the business combination paid by Manama on December 31, 2019, were allocable as follows: 45% to finders, legal, and accounting fees directly related to the business combination: 55% to the SEC registration statement for Manama’s common stock issued in the businesses...
help me On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common...
help me
On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common stock (current fair value $14 a share) for 36,000 shares of the outstanding $10 par common stock of Bahrain Company. The $100,000 out-of-pocket costs of the business combination paid by Manama on December 31, 2019, were allocable as follows: 45% to finders, legal, and accounting fees directly related to the business combination: 55% to the SEC registration statement for Manama's common stock issued in...
On January 1, 2017 Subic Company issued shares of its P5 par value stock to acquire...
On January 1, 2017 Subic Company issued shares of its P5 par value stock to acquire of Financial Position for Subic Company and Statement of Financial Position for the all the shares of Clark Inc. which was liquidated immediately thereafter. The Statement Problem 13-10 combined company under the purchase method are presented below: Combined Company Subic Company Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Goodwill Total Assets P 70,000 130,000 100,000 100,000 400,000 ( 150,000) P100,000...
Accounting for a controlling financial interest An acquiring company issues 5,000 shares of $2 par value...
Accounting for a controlling financial interest An acquiring company issues 5,000 shares of $2 par value common stock to acquire 100% of the voting common stock of an investee company in a transaction that qualifies as a business combination. The market value of the acquiring company's common stock is $10 per share. Direct legal and consulting fees incurred pursuant to the combination are $2,000. Direct registration and issuance costs for the acquiring company's common stock are $500. The transaction did...
Patel Company issued 106,200 shares of $1 par value common stock (market value of $6/share) for...
Patel Company issued 106,200 shares of $1 par value common stock
(market value of $6/share) for the net assets of Seely Company on
January 1, 2014, in a statutory merger. Seely Company had the
following assets, liabilities, and owners’ equity at that time:
Book Value Tax Basis Fair Value Difference Cash $21,450 $21,450
$—0— Accounts receivable 110,180 110,180 —0— Inventory (LIFO)
81,660 134,850 53,190 Land 29,630 55,170 25,540 Plant assets (net)
359,900 428,940 69,040 Total assets $602,820 $750,590 Allowance for...
Exercise 3-4 On January 1, 2013, Peach Company issued 1,390 of its $20 par value common...
Exercise 3-4 On January 1, 2013, Peach Company issued 1,390 of its $20 par value common shares with a fair value of $58 per share in exchange for the 1,870 outstanding common shares of Swartz Company in a purchase transaction. Registration costs amounted to $1,867, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Peach Company Swartz Company Cash $70,580 $13,760 Accounts receivable (net) 95,150 20,050 Inventory 58,210 22,920 Plant and...
Exercise 3-4 On January 1, 2013, Peach Company issued 1,390 of its $20 par value common...
Exercise 3-4
On January 1, 2013, Peach Company issued 1,390 of its $20 par value
common shares with a fair value of $58 per share in exchange for
the 1,870 outstanding common shares of Swartz Company in a purchase
transaction. Registration costs amounted to $1,867, paid in cash.
Just prior to the acquisition, the balance sheets of the two
companies were as follows:
Peach Company
Swartz Company
Cash
$70,580
$13,760
Accounts receivable (net)
95,150
20,050
Inventory
58,210
22,920
Plant and...
39. A parent company exchanges 12,000 shares of its $2 par value common stock, with a...
39. A parent company exchanges 12,000 shares of its $2 par value common stock, with a fair value of $9/share, for all of the shares owned by the subsidiary’s shareholders. On the acquisition date, the subsidiary reported $30,000 of contributed capital (i.e., common stock) and $45,000 of Retained Earnings. An examination of the subsidiary’s balance sheet revealed that book values were equal to fair values for all assets except for PPE (net), which has a book value of $40,000 and...
help me
On December 31, 2019, Manama Corporation issued 90,000 shares of its no-par, no-stated-value common stock (current fair value $14 a share) for 36,000 shares of the outstanding $10 par common stock of Bahrain Company. The $100,000 out-of-pocket costs of the business combination paid by Manama on December 31, 2019, were allocable as follows: 45% to finders, legal, and accounting fees directly related to the business combination: 55% to the SEC registration statement for Manama's common stock issued in...
On January 1, 2017 Subic Company issued shares of its P5 par value stock to acquire of Financial Position for Subic Company and Statement of Financial Position for the all the shares of Clark Inc. which was liquidated immediately thereafter. The Statement Problem 13-10 combined company under the purchase method are presented below: Combined Company Subic Company Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Goodwill Total Assets P 70,000 130,000 100,000 100,000 400,000 ( 150,000) P100,000...
Accounting for a controlling financial interest An acquiring company issues 5,000 shares of $2 par value common stock to acquire 100% of the voting common stock of an investee company in a transaction that qualifies as a business combination. The market value of the acquiring company's common stock is $10 per share. Direct legal and consulting fees incurred pursuant to the combination are $2,000. Direct registration and issuance costs for the acquiring company's common stock are $500. The transaction did...
Patel Company issued 106,200 shares of $1 par value common stock
(market value of $6/share) for the net assets of Seely Company on
January 1, 2014, in a statutory merger. Seely Company had the
following assets, liabilities, and owners’ equity at that time:
Book Value Tax Basis Fair Value Difference Cash $21,450 $21,450
$—0— Accounts receivable 110,180 110,180 —0— Inventory (LIFO)
81,660 134,850 53,190 Land 29,630 55,170 25,540 Plant assets (net)
359,900 428,940 69,040 Total assets $602,820 $750,590 Allowance for...
Exercise 3-4
On January 1, 2013, Peach Company issued 1,390 of its $20 par value
common shares with a fair value of $58 per share in exchange for
the 1,870 outstanding common shares of Swartz Company in a purchase
transaction. Registration costs amounted to $1,867, paid in cash.
Just prior to the acquisition, the balance sheets of the two
companies were as follows:
Peach Company
Swartz Company
Cash
$70,580
$13,760
Accounts receivable (net)
95,150
20,050
Inventory
58,210
22,920
Plant and...
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