I have created a fair value and goodwill allocation schedule based on the data. Would it be a good decision to acquire Arizona Corp?
Arizona Corp. had the following account balances at 12/1/19: Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000. Several of Arizona's accounts have fair values that differ from book value. The fair values are: Land — $480,000; Building — $720,000; Inventory — $336,000; and Liabilities — $396,000. Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000.
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I have created a fair value and goodwill allocation schedule
based on the data. Would it...
have created a fair value and goodwill allocation schedule based on the data. Would it be...
have created a fair value and goodwill allocation schedule based
on the data. Would it be a good decision to acquire Arizona Corp?
Please use the fair value allocation and good will schedule below
to answer the question.
Arizona Corp. had the following account balances at 12/1/19:
Receivables: $96,000; Inventory: $240,000; Land: $720,000;
Building: $600,000; Liabilities: $480,000; Common stock: $120,000;
Additional paid-in capital: $120,000; Retained earnings, 12/1/19:
$840,000; Revenues: $360,000; and Expenses: $264,000. Several of
Arizona's accounts have fair values...
Create a fair value allocation and goodwill schedule at the date of the acquisition. Arizona Corp....
Create a fair value allocation and goodwill schedule at the date of the acquisition. Arizona Corp. had the following account balances at 12/1/19: Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000. Several of Arizona's accounts have fair values that differ from book value. The fair values are: Land — $480,000; Building — $720,000; Inventory — $336,000; and Liabilities — $396,000. Inglewood Inc....
Arizona Corp. had the following account balances at 12/1/19: Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building:...
Arizona Corp. had the following account balances at 12/1/19: Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000. Several of Arizona's accounts have fair values that differ from book value. The fair values are: Land — $480,000; Building — $720,000; Inventory — $336,000; and Liabilities — $396,000. Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of...
please explain CISE 2-1 Asset Purchase LO 6 Book Value Fair Value Cash Receivables (net) Inventory...
please explain
CISE 2-1 Asset Purchase LO 6 Book Value Fair Value Cash Receivables (net) Inventory Plant and equipment (net) Land $ 120,000 192,000 360,000 480,000 420,000 $ 120,000 228,000 396,000 540,000 660,000 Total assets $1,572,000 $1,944,000 $ 594,000 Liabilities Common stock ($5 par value) Other contributed capital Retained earnings Total equities $ 540,000 480,000 132,000 420,000 $1,572,000 Required: A. Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of...
L') Cost of the investment less the subsidiary's fair var (D) Cost of the investment less...
L') Cost of the investment less the subsidiary's fair var (D) Cost of the investment less the subsidiary's fair val E) No longer allowed under federal law. thent less the subsidiary's book value at the acquisition de less the subsidiary's fair value at the beginning of the year. ry's fair value at the acquisition date. 2. CPA Inc. acquired 100% of the voting common stoc MBA's accounts on that date (prior to creating the com ting common stock of MBA...
Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021....
Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger’s accounts on that date (prior to creating the combination) are as follows, along with the book value of Wilkins’s accounts: Wilkins Book Value Granger Book Value Granger Fair Value Retained earnings, 1/1/21 $ 250,000 $ 240,000 Cash and receivables 170,000 70,000 $ 70,000 Inventory 230,000 180,000 210,000 Land 320,000 220,000 240,000 Buildings (net) 480,000 240,000 280,000...
Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately...
Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company's balance sheet was as follows: Book Value Fair Value Cash $ 120,000 $ 120,000 Receivables (net) 192,000 228,000 Inventory 360,000 396,000 Plant and equipment (net) 480,000 540,000 Land 420,000 660,000 Total assets $ 1,572,000 $ 1,944,000 Liabilities $ 540,000 $ 594,000 Common stock ($ 5 par value) 480,000 Other contributed capital 132,000 Retained earnings 420,000 Total equities $ ...
EXERCISE 2‐1 Asset Purchase LO 6 Preston Company acquired the assets (except for cash) and assumed...
EXERCISE 2‐1 Asset Purchase LO 6 Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company's balance sheet was as follows: Book Value Fair Value Cash $ 120,000 $ 120,000 Receivables (net) 192,000 228,000 Inventory 360,000 396,000 Plant and equipment (net) 480,000 540,000 Land 420,000 660,000 Total assets $ 1,572,000 $ 1,944,000 Liabilities $ 540,000 $ 594,000 Common stock ($ 5 par value) 480,000 Other contributed capital 132,000...
EXERCISE 2‐1 Asset Purchase LO 6 Preston Company acquired the assets (except for cash) and assumed...
EXERCISE 2‐1 Asset Purchase LO 6 Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company's balance sheet was as follows: Book Value Fair Value Cash $ 120,000 $ 120,000 Receivables (net) 192,000 228,000 Inventory 360,000 396,000 Plant and equipment (net) 480,000 540,000 Land 420,000 660,000 Total assets $ 1,572,000 $ 1,944,000 Liabilities $ 540,000 $ 594,000 Common stock ($ 5 par value) 480,000 Other contributed capital 132,000...
LO 5-2 E5-4 Computation of Consolidated Balances Statue Corporation's balance sheet at January 1, 20X7, reflected...
LO 5-2 E5-4 Computation of Consolidated Balances Statue Corporation's balance sheet at January 1, 20X7, reflected the following balances: $ 40,000 Cash & Receivables Inventory Land Buildings & Equipment (net) $ 80,000 120,000 70,000 480,000 60,000 200,000 Accounts Payable Income Taxes Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity 250,000 200,000 $750.000 Total Assets $750,000 Prize Corporation entered into an active acquisition program and acquired 80 percent of Statue's common stock on January 2, 20X7, for...
have created a fair value and goodwill allocation schedule based
on the data. Would it be a good decision to acquire Arizona Corp?
Please use the fair value allocation and good will schedule below
to answer the question.
Arizona Corp. had the following account balances at 12/1/19:
Receivables: $96,000; Inventory: $240,000; Land: $720,000;
Building: $600,000; Liabilities: $480,000; Common stock: $120,000;
Additional paid-in capital: $120,000; Retained earnings, 12/1/19:
$840,000; Revenues: $360,000; and Expenses: $264,000. Several of
Arizona's accounts have fair values...
please explain
CISE 2-1 Asset Purchase LO 6 Book Value Fair Value Cash Receivables (net) Inventory Plant and equipment (net) Land $ 120,000 192,000 360,000 480,000 420,000 $ 120,000 228,000 396,000 540,000 660,000 Total assets $1,572,000 $1,944,000 $ 594,000 Liabilities Common stock ($5 par value) Other contributed capital Retained earnings Total equities $ 540,000 480,000 132,000 420,000 $1,572,000 Required: A. Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of...
L') Cost of the investment less the subsidiary's fair var (D) Cost of the investment less the subsidiary's fair val E) No longer allowed under federal law. thent less the subsidiary's book value at the acquisition de less the subsidiary's fair value at the beginning of the year. ry's fair value at the acquisition date. 2. CPA Inc. acquired 100% of the voting common stoc MBA's accounts on that date (prior to creating the com ting common stock of MBA...
LO 5-2 E5-4 Computation of Consolidated Balances Statue Corporation's balance sheet at January 1, 20X7, reflected the following balances: $ 40,000 Cash & Receivables Inventory Land Buildings & Equipment (net) $ 80,000 120,000 70,000 480,000 60,000 200,000 Accounts Payable Income Taxes Payable Bonds Payable Common Stock Retained Earnings Total Liabilities & Stockholders' Equity 250,000 200,000 $750.000 Total Assets $750,000 Prize Corporation entered into an active acquisition program and acquired 80 percent of Statue's common stock on January 2, 20X7, for...
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