Calculate the difference between the value implied by the purchase price and book value in each of the separate cases below
[Ⅱ] Calculate the difference between the value implied by the purchase price and book value in each of the separate cases below
|
Case |
Percent of Stock Owned |
Investment Cost |
S Company Equity Balances |
||
|
Common Stock |
Other Contributed Capital |
Retained Earnings |
|||
|
a. |
100% |
$1,200,000 |
$600,000 |
$350,000 |
$200,000 |
|
b. |
85% |
850,000 |
500,000 |
200,000 |
100,000 |
|
c. |
90% |
1,000,000 |
750,000 |
300,000 |
(250,000) |
|
d. |
60% |
600,000 |
350,000 |
-0- |
300,000 |
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Calculate the difference between the value implied by the purchase price and book value in each of the separate cases below
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please show your work there is no additional information. peg 95 and 96 is a silmilar...
please show your work
there is no additional information. peg 95 and 96 is a silmilar
problem.
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The formula and answer is as follows:
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Please explain where the $100 comes from and why dividing the
common stock by total current liabilities. Please provide a
thorough explaination of the entire problem.
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59. Consolidation at date of acquisition (purchase price equals book value) A parent company acquires its subsidiary by exchanging 30,000 shares of its Common Stock, with a fair value on the acquisition date of $20 per share, for all of the outstanding voting shares of the investee. a. What is the total fair value of the subsidiary on the acquisition date? b. Prepare the consolidation entry or entries on the...
please show your work
there is no additional information. peg 95 and 96 is a silmilar
problem.
Name: Score: P Corp. acquired 80 percent of corps common quired 80 percent of S Corp's common shares on January 1, 2020 for $620,000 cash S Corp. will continue as a separate legal entity. Further examination of S Corp's balance sheet below provides book and fair values S Corporation's Balance Sheet (January 1, 2020) Cash and Receivables Inventories Land Buildings and Equipment (net)...
Exercise 2-11 Relation between Purchase Price, Goodwill, and Negative Goodwill LO 6 The following balance sheets were reported on January 1, 2019, for Peach Company and Stream Company: Peach Stream Cash $ 100,000 $ 20,000 Inventory 300,000 100,000 Equipment (net) 880,000 380,000 Total $1,280,000 $500,000 Total Liabilities $ 300,000 $100,000 Common stock, $20 par value 400,000 200,000 Other contributed capital 250,000 70,000 Retained earnings 330,000 130,000 Total $1,280,000 $500,000 Required: Appraisals reveal that the inventory has a fair value of...
What is the firm's market to book value for 2009?
The formula and answer is as follows:
$100/[($850,000/25,000)] = 2.9400
Please explain where the $100 comes from and why dividing the
common stock by total current liabilities. Please provide a
thorough explaination of the entire problem.
Snapit Company Income Statement (2009) Sales Cost of goods sold Gross profit Selling and administrative expenses Operating profit Interest expense Income before tax Tas expense Net income $4,000,000 3.040,000 960.000 430.000 530.000 160,000 370,000...
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