Homework Answers
| Account titles and explanation | debit | credit |
| Cash & receivables | 75000 | |
| Inventory | 200000 | |
| Land | 75000 | |
| Plant & equipment | 350000 | |
| Discount on Bonds payable (660000-644000) | 16000 | |
| Accounts Payable | 50000 | |
| Bonds payable | 644000 | |
| Gain on bargain purchase of subsidiary (balancing figure) | 22000 | |
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Kash, Inc used debentures with a par value of $660,000 to acquire 100%...
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 ...
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....
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....
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...
Planter Corporation used debentures with a par value of $577,000 to acquire 100 percent of Sorden...
Planter Corporation used debentures with a par value of $577,000 to acquire 100 percent of Sorden Company’s net assets on January 1, 20X2. On that date, the fair value of the bonds issued by Planter was $561,000. The following balance sheet data were reported by Sorden: Balance Sheet Item Historical Cost Fair Value Assets Cash & Receivables $ 63,000 $ 56,000 Inventory 118,000 202,000 Land 62,000 103,000 Plant & Equipment 405,000 302,000 Less: Accumulated Depreciation (150,000 ) Goodwill 19,000 Total...
BB Co., Inc. issues 1 Million of it $5 par value stock plus $5,000,000 in cash...
BB Co., Inc. issues 1 Million of it $5 par value stock plus $5,000,000 in cash to acquire 100% of the voting common stock in DD Corporation. On the date of acquisition BB stock is trading at $40 per share. BB will account for this business combination as a stock acquisition. Balance sheet information ($ in thousands) as of the date of acquisition is as follows: BB Co., Inc. Book Values Dr (Cr) DD Corp. Book Values Dr (Cr) Fair...
Liberty Inc. acquired 100% of the voting common stock of Valance Inc. on January 1, 2018...
Liberty Inc. acquired 100% of the voting common stock of Valance Inc. on January 1, 2018 by issuing 4,000 shares of Liberty Inc. $40 par value common stock that had a fair value of $120 per share. Valance Inc. will dissolve after the acquisition. Liberty incurred $40,000 of legal and accounting fees; and paid $25,000 in stock issuance costs as a result of this acquisition. The book value and fair value of Valance’s accounts on that date (prior to creating...
Assume that on January 1, 2013, an investor company acquired 100% of the outstanding voting common...
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...
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....
please show all work needed 4. Johnson paid $325,000 to acquire 100% of Willis Corporation in...
please show all work needed
4. Johnson paid $325,000 to acquire 100% of Willis Corporation in a statutory merger. In addition, Johnson also agreed to pay the shareholders of Willis $0.40 in cash for every dollar in income from continuing operations of the combined entity over $75,000 in the first three years following acquisition. Johnson projects that there is a 20% (45%, 35%) probability that the income from continuing operations in the first three years following acquisition is $65,000 (590,000,...
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....
please show all work needed
4. Johnson paid $325,000 to acquire 100% of Willis Corporation in a statutory merger. In addition, Johnson also agreed to pay the shareholders of Willis $0.40 in cash for every dollar in income from continuing operations of the combined entity over $75,000 in the first three years following acquisition. Johnson projects that there is a 20% (45%, 35%) probability that the income from continuing operations in the first three years following acquisition is $65,000 (590,000,...
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