On 1/1/20x1, Petwoud Company exchanged 25,000 shares of its $1 par value common stock and $150,000 cash to acquire 80% of the outstanding voting common stock of Supagud, Inc. At the acquisition date, the fair value of Petwoud Company’s common stock was $20 per share. Petwoud’s payment includes a control premium of $15,000.
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
On 1/1/20x1, Petwoud Company exchanged 25,000 shares of its $1 par value common stock and $150,000 cash to acquire 80% of the outstanding voting common stock of Supagud, Inc. At the acquisition date, the fair value of Petwoud Company’s common stock was $
4. On January I, Chester Inc. acquires \(100 \%\) of Festus Corp.'s outstanding common stock by issuing 100,000 shares of Chester's \(\$\) I par value common voting stock. In addition, Chester paid \(\$ 1,800,000\) in cash. Chester also incurred direct combination costs of \(\$ 350,000\) and stock issuance costs of \(\$ 650,000\).On January \(1,\) Chester's voting common stock had a market value of \(\$ 35.50\) per share. Festus' voting common shares were selling for \(\$ 12.50\) pr share. Festus' balances on...
Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2018. To obtain these shares, Flynn pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $36 per share on that date. Flynn also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Flynn in stock issuance costs....
Dun & Harvey Inc. has 5,000,000 shares of $1 par value common stock outstanding at January 1. On July 1, Dun & Harvey issued 800,000 shares at a cost of $32 per share. In addition, at December 31, 2018, 150,000 shares were issuable upon exercise of executive stock options which an exercise price of $25 per share. The average market price of the company’s stock was $30 per share. Dun & Harvey Inc. also has two convertible securities. Convertible bonds,...
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.20 per share on January 1, 2017. The remaining 20 percent of Devine’s shares also traded actively at $7.20 per share before and after Holtz’s acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine’s underlying accounts except that a building with a five-year future life was undervalued by $85,500 and a fully amortized trademark...
Maxco Inc. wishes to acquire Minnow Inc. The latter has 500,000 shares of common stock outstanding with voting rights and 100,000 shares of nonvoting preferred stock. A. How many shares of each class of stock must Maxco acquire to qualify the acquisition as a Type B reorganization? B. If Maxco uses its treasury stock to make the acquisition, does it matter how much Maxco paid for the shares? C. If Maxco liquidates Minnow soon after the reorganization and acquires Minnow's...
Maxwell acquires 100 percent of the outstanding voting shares of Daisy Company on January 1, 2016. To obtain these shares, Maxwell pays $200,000 cash and issues 6,000 shares of $5 par value common stock on this date. Maxwell’s stock had a fair value of $20 per share. Maxwell also pays an additional $4,000 in stock issuance costs. At date of acquisition, the book values and fair values of Daisy's net assets amounted to $230,000 and $265,000, respectively. How much additional...
Gunns Inc. issues 15,000 shares of $1 par value common stock and 25 shares of $1,000 par value, 6% preferred stock to a private investor for $630,000. The fair value of the common stock is $40 per share and the fair value of the preferred stock is $1200 per share. Prepare the journal entry to record the transaction assuming that the fair market values (FMV) for both the common and preferred stock are known and shown below.
On January 1, 2018, Chester Inc. acquires 100% of Festus Corp.'s outstanding common stock by exchanging 37,500 shares of Chester's $2 par value common voting stock. On January 1, 2018, Chester's voting common stock had a fair value of $40 per share. Festus' voting common shares were selling for $6.50 per share. Festus' balances on the acquisition date, just prior to acquisition are listed below. Book Value Fair Value Cash $ 30,000 Accounts Receivable 120,000 $ 120,000 Inventory 200,000 230,000...
2. BCC Inc. has 390,000 shares of $10 par value common stock issued and outstanding. REQUIRED (24 points) Prepare journal entries to record the following (round to nearest dollar.) Jan. 3, 2020 Issued 15,000 shares for $15 per share Jan 15 Purchased 5,000 shares of treasury stock at $17 Jan 22 Declared a dividend of $1.50 per share on the outstanding shares of common stock. Feb. 8 Paid the dividend declared on January 22. Sep. 1 Declared a 5% stock...
2. BCC Inc. has 390,000 shares of $10 par value common stock issued and outstanding. REQUIRED (24 points) Prepare journal entries to record the following (round to nearest dollar.) Jan. 3, 2020 Issued 15,000 shares for $15 per share Jan 15 Purchased 5,000 shares of treasury stock at $17 Jan 22 Declared a dividend of $1.50 per share on the outstanding shares of common stock. Feb. 8 Paid the dividend declared on January 22. Sep. 1 Declared a 5% stock...