Please help to show the workings:
Maryhill Corp. purchased all of Hood River Company's common stock for $3,612,000 cash on January 1. When analyzing the purchase price, Maryhill Corp. determined that the other assets of Hood River were undervalued by $633,600 and that the company had an unrecorded liability of $240,000 related to ongoing litigation. Any excess purchase price was for goodwill.
Use the following table to consolidate the balance sheets of the two companies as of the acquisition date.
Maryhill |
Hood River |
Consolidating Adjustments |
Consolidated Balance Sheet |
|
Investment in Hood River |
$3,612,000 |
|||
Other assets |
6,156,000 |
$2,452,800 |
||
Goodwill |
||||
Total assets |
$9,768,000 |
$2,452,800 |
||
Liabilities |
$4,060,800 |
$1,166,400 |
||
Common stock |
2,052,000 |
540,000 |
||
Retained earnings |
3,655,200 |
746,400 |
||
Total Liabilities & Equity |
$9,768,000 |
$2,452,800 |
Please help to show the workings: Maryhill Corp. purchased all of Hood River Company's common stock...
Please help to show the workings: Please note that this is the second time this question has been posted as the first answer was incorrect. Maryhill Corp. purchased all of Hood River Company's common stock for $3,612,000 cash on January 1. When analyzing the purchase price, Maryhill Corp. determined that the other assets of Hood River were undervalued by $633,600 and that the company had an unrecorded liability of $240,000 related to ongoing litigation. Any excess purchase price was for...
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