Homework Answers
| Balance sheet Petrello Co. | |
| Cash | 680000 |
| Receivables | 720000 |
| Inventories | 2240000 |
| Plant & equipment | 4560000 |
| Goodwill | 120000 |
| Total Assets | 8320000 |
| Liabilities | 1520000 |
| Common stock | 3840000 |
| Other contributed capital | 400000 |
| Securities premium | 800000 |
| Retained earnings | 1760000 |
| Total Liabilities | 8320000 |
| Calculation of Purchase consideration: | |
| Outstanding shares of Sanchez Co. (A) | 50000 |
| No. of shares issued by Petrello (B) = (A*1/2) | 25000 |
| Market Value of Petrello's shares (C ) | 48 |
| Thus, Purchase consideration (B*C) | 1200000 |
| Calculation of Goodwill: | |
| Fair value of net assets : | |
| Cash | 200000 |
| Receivables | 240000 |
| Inventories | 240000 |
| Plant & equipment | 720000 |
| Liabilities | -320000 |
| Fair value of net assets | 1080000 |
| Purchase consideration | 1200000 |
| Thus, goodwill | 120000 |
Add Answer to:
67 EXERCISE 2-2 Acquisition Method LO 6 The balance sheets of Petrello Company and Sanchez Company...
EXERCISE 2‐2 Acquisition Method LO 6 The balance sheets of Petrello Company and Sanchez Company as...
EXERCISE 2‐2 Acquisition Method LO 6 The balance sheets of Petrello Company and Sanchez Company as of January 1, 2019, are presented below. On that date, after an extended period of negotiation, the two companies agreed to merge. To effect the merger, Petrello Company is to exchange its unissued common stock for all the outstanding shares of Sanchez Company in the ratio of 1/212 share of Petrello for each share of Sanchez. Market values of the shares were agreed on...
Exercise 2-2 The balance sheets of Petrello Company and Sanchez Company as of January 1, 2014,...
Exercise 2-2
The balance sheets of Petrello Company and Sanchez Company as of
January 1, 2014, are presented below. On that date, after an
extended period of negotiation, the two companies agreed to merge.
To effect the merger, Petrello Company is to exchange its unissued
common stock for all the outstanding shares of Sanchez Company in
the ratio of 1/2 share of Petrello for each share of Sanchez.
Market values of the shares were agreed on as Petrello, $50;
Sanchez,...
12. Ejercicio #2. Favor de responder en el espacio provisto. Son Exercise 2: Prepare balance sheet...
12. Ejercicio #2. Favor de responder en el espacio provisto. Son Exercise 2: Prepare balance sheet after acquisition Comparative balance sheets for Pop and Son Corporations at December 31, 2015, are as follows: Pop Current assets $2,080,000 $960,000 Land 800,000 1,600,000 Buildings-net 4,800,000 1,600,000 Equipment-net 3,520,000 3,840,000 Total assets $11,200,000 $8,000,000 Current liabilities $800,000 $960,000 Capital stock, $10 par 8,000,000 3,200,000 Additional paid-in capital 800,000 2,240,000 Retained earnings 1,600,000 1,600,000 Total equities $11,200,000 $8,000,000 On January 2, 2016, Pop issues...
2-1 Condensed balance sheets for Phillips Company and Solina Company on January 1, 2013, are as...
2-1
Condensed balance sheets for Phillips Company and Solina Company
on January 1, 2013, are as follows:
Phillips
Solina
Current assets
$171,610
$81,840
Plant and equipment
(net)
441,500
144,220
Total assets
$613,110
$226,060
Total liabilities
$98,070
$35,990
Common stock, $10 par
value
327,300
167,910
Other contributed
capital
116,550
50,110
Retained earnings
(deficit)
71,190
(27,950
)
Total liabilities and
equities
$613,110
$226,060
On January 1, 2013, the stockholders of Phillips and Solina agreed
to a consolidation. Because FASB requires that one...
Condensed balance sheets for Phillips Company and Solina Company on January 1, 2013, are as follows:...
Condensed balance sheets for Phillips Company and Solina Company on January 1, 2013, are as follows: Phillips Solina Current assets$180,000$85,000 Plant and equipment (net)450,000140,000 Total assets$630,000$225,000 Total liabilities$95,000$35,000 Common stock, $10 par value350,000160,000 Other contributed capital125,00053,000 Retained earnings (deficit)60,000(23,000) Total liabilities and equities$630,000$225,000 On January 1, 2013, the stockholders of Phillips and Solina agreed to a consolidation. Because FASBrequires that one party be recognized as the acquirer and the other as the acquiree, it was agreed that Phillips wasacquiring Solina....
Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that...
Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that the parent company acquires its subsidiary by exchanging 84,000 shares of its $2 par value Common Stock, with a fair value on the acquisition date of $42 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling their book values except...
Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that...
Consolidation at date of acquisition (purchase price
greater than book value, acquisition journal entries
Assume that the parent company acquires its subsidiary by
exchanging 84,000 shares of its $2 par value Common Stock, with a
fair value on the acquisition date of $45 per share, for all of the
outstanding voting shares of the investee. In its analysis of the
investee company, the parent values all of the subsidiary’s assets
and liabilities at an amount equaling their book values except...
48. Assume that the parent company acquires its subsidiary by exchanging 84,000 shares of its $2...
48. Assume that the parent company acquires its subsidiary by exchanging 84,000 shares of its $2 par value Common Stock, with a fair value on the acquisition date of $38 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary’s assets and liabilities at an amount equaling their book values except for an unrecorded Trademark with a fair value of $240,000, an unrecorded Video...
Condensed balance sheets for Smith and Jones on January 1, 2019 are as follows: Current Assets...
Condensed balance sheets for Smith and Jones on January 1, 2019 are as follows: Current Assets Plant and Equipment, Net Total Assets Smith $180,000 450,000 $630,000 Jones $85,000 140,000 $225,000 Total Liabilities Common Stock, $10 par value Other Contributed Capital Retained Earnings (deficit) Total Liabilities and Equities $95,000 350,000 125,000 60,000 $630,000 $35,000 160,000 53,000 -23,000 $225,000 On January 1, 2019, Smith and Jones agreed to a consolidation. Because the FASB requires one party to be the buyer or acquiring...
Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that...
Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that the parent company acquires its subsidiary by exchanging 84,000 shares of its $2 par value Common Stock, with a fair value on the acquisition date of $42 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling their book values except...
Exercise 2-2
The balance sheets of Petrello Company and Sanchez Company as of
January 1, 2014, are presented below. On that date, after an
extended period of negotiation, the two companies agreed to merge.
To effect the merger, Petrello Company is to exchange its unissued
common stock for all the outstanding shares of Sanchez Company in
the ratio of 1/2 share of Petrello for each share of Sanchez.
Market values of the shares were agreed on as Petrello, $50;
Sanchez,...
12. Ejercicio #2. Favor de responder en el espacio provisto. Son Exercise 2: Prepare balance sheet after acquisition Comparative balance sheets for Pop and Son Corporations at December 31, 2015, are as follows: Pop Current assets $2,080,000 $960,000 Land 800,000 1,600,000 Buildings-net 4,800,000 1,600,000 Equipment-net 3,520,000 3,840,000 Total assets $11,200,000 $8,000,000 Current liabilities $800,000 $960,000 Capital stock, $10 par 8,000,000 3,200,000 Additional paid-in capital 800,000 2,240,000 Retained earnings 1,600,000 1,600,000 Total equities $11,200,000 $8,000,000 On January 2, 2016, Pop issues...
2-1
Condensed balance sheets for Phillips Company and Solina Company
on January 1, 2013, are as follows:
Phillips
Solina
Current assets
$171,610
$81,840
Plant and equipment
(net)
441,500
144,220
Total assets
$613,110
$226,060
Total liabilities
$98,070
$35,990
Common stock, $10 par
value
327,300
167,910
Other contributed
capital
116,550
50,110
Retained earnings
(deficit)
71,190
(27,950
)
Total liabilities and
equities
$613,110
$226,060
On January 1, 2013, the stockholders of Phillips and Solina agreed
to a consolidation. Because FASB requires that one...
Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that the parent company acquires its subsidiary by exchanging 84,000 shares of its $2 par value Common Stock, with a fair value on the acquisition date of $42 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling their book values except...
Consolidation at date of acquisition (purchase price
greater than book value, acquisition journal entries
Assume that the parent company acquires its subsidiary by
exchanging 84,000 shares of its $2 par value Common Stock, with a
fair value on the acquisition date of $45 per share, for all of the
outstanding voting shares of the investee. In its analysis of the
investee company, the parent values all of the subsidiary’s assets
and liabilities at an amount equaling their book values except...
Condensed balance sheets for Smith and Jones on January 1, 2019 are as follows: Current Assets Plant and Equipment, Net Total Assets Smith $180,000 450,000 $630,000 Jones $85,000 140,000 $225,000 Total Liabilities Common Stock, $10 par value Other Contributed Capital Retained Earnings (deficit) Total Liabilities and Equities $95,000 350,000 125,000 60,000 $630,000 $35,000 160,000 53,000 -23,000 $225,000 On January 1, 2019, Smith and Jones agreed to a consolidation. Because the FASB requires one party to be the buyer or acquiring...
Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that the parent company acquires its subsidiary by exchanging 84,000 shares of its $2 par value Common Stock, with a fair value on the acquisition date of $42 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary's assets and liabilities at an amount equaling their book values except...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 40 minutes ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 1 hour ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 2 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 3 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 4 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 5 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 6 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 9 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 9 hours ago