Kash, Inc used debentures with a par value of $660,000 to acquire 100% of Sheb, Inc....
| Kash, Inc used debentures with a par value of $660,000 to acquire 100% of Sheb, Inc. on January 1, 2013. On the date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Sheb at the point of the acquisition: | ||
| Prepare the entry to record the above transaction | ||
| Historical Cost | Fair Value | |
| Cash & Receivables | 80,000 | 75,000 |
| Inventory | 145,000 | 200,000 |
| Land | 75,000 | 75,000 |
| Plant & Equipment | 450,000 | 350,000 |
| Less: Accumulated Depreciation | (170,000) | |
| Total Assets | 580,000 | 700,000 |
| Account Payable | 50,000 | 50,000 |
| Common Stock | 100,000 | |
| Additional Paid in Capital | 60,000 | |
| Retain Earnings | 370,000 | |
| Total Liability & Equity | 580,000 | |
Homework Answers
| Fair Value of Debenture issued = | $ 644,000 |
| Fair Value of Net Assets Acquired = | $ 650,000 |
| So Gain on Bargain purchase = | $ 6,000 |
| Journal Entry For Acquisition | ||
| Account Title | Cr $ | Cr $ |
| Cash & Receivable | 75,000 | |
| Inventory | 200,000 | |
| Land | 75,000 | |
| Plant & Equipment | 350,000 | |
| Accounts Payable | 50,000 | |
| Debenture | 644,000 | |
| Gain on Bargain Purchase | 6,000 |
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Kash, Inc used debentures with a par value of $660,000 to acquire
100% of Sheb, Inc....
PLEASE SHOW WORKING Kash, Inc used debentures with a par value of $660,000 to acquire 100%...
PLEASE SHOW WORKING
Kash, Inc used debentures with a par value of $660,000 to acquire 100% of Sheb, Inc. on January 1, 2013. On the date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Sheb at the point of the acquisition: Prepare the entry to record the above transaction Cash & Receivables Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Historical Cost 80,000 145,000 75,000 450,000 (170,000) 580,000 Fair...
Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, Inc. on...
Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, Inc. on January 1, 2013. On that date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Zeta at the point of the acquisition: Cash and Receivabled Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Historical Fair Cost Value 80,000 75,000 145,000 200,000 75,000 75,000 450,000 350,000 -170,000 580,000 700,000 50,000 Accounts Payable Common Stock Additional...
11. Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, Inc....
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II. Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, Inc....
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SHOW ALL WORKINGS The Investor acquired 75% of Investee on January 1, 2020 for $105,000. At...
SHOW ALL WORKINGS
The Investor acquired 75% of Investee on January 1, 2020 for
$105,000. At acquisition the fair value of the noncontrolling
interest was $35,000. Trial Balances for the two entities at
December 21, 2020 are:
Required The book value of the investee's assets are equal to
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2....
PLEASE SHOW WORKING
Kash, Inc used debentures with a par value of $660,000 to acquire 100% of Sheb, Inc. on January 1, 2013. On the date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Sheb at the point of the acquisition: Prepare the entry to record the above transaction Cash & Receivables Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Historical Cost 80,000 145,000 75,000 450,000 (170,000) 580,000 Fair...
Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, Inc. on January 1, 2013. On that date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Zeta at the point of the acquisition: Cash and Receivabled Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Historical Fair Cost Value 80,000 75,000 145,000 200,000 75,000 75,000 450,000 350,000 -170,000 580,000 700,000 50,000 Accounts Payable Common Stock Additional...
11. Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, Inc. on January 1, 2013. On that date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Zeta at the point of the acquisition: Cash and Receivabled Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Historical Fair Cost Value 80,000 75,000 145,000 200,000 75,000 75,000 450,000 350,000 -170,000 580,000 700,000 50,000 Accounts Payable Common Stock...
II. Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, Inc. on January 1, 2013. On that date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Zeta at the point of the acquisition: Cash and Receivabled Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Historical Fair Cost Value 80,000 75,000 145,000 200,000 75,000 75,000 450,000 350,000 -170,000 580,000 700,000 50,000 Accounts Payable Common Stock...
Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common stock of an investee company. The following financial statement information is for the investor company and the investee company on January 1, 2013, prepared immediately before this transaction. Book Values Investor Investee Receivables & inventories $100,000 $50,000 Land 200,000 100.000 Property & equipment 225.000 100.000 Total assets $525,000 $250,000 Liabilities $150,000 $80,000 Common stock ($2 par) 20,000 10,000 Additional paid-in capital 280.000 150.000 Retained...
SHOW ALL WORKINGS
The Investor acquired 75% of Investee on January 1, 2020 for
$105,000. At acquisition the fair value of the noncontrolling
interest was $35,000. Trial Balances for the two entities at
December 21, 2020 are:
Required The book value of the investee's assets are equal to
the fair value except for Building & Equipment which are worth
$25,000 more. Building and Equipment have 10 years of remaining
life at time of acquisition
1. Allocation of Acquisition Value
2....
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