a)prepare a computation and allocation schedule
b)The entries to eliminate the investment account:
Homework Answers
Add Answer to:
a)prepare a computation and allocation schedule b)The entries to eliminate the investment account: Exercise 5-1 On...
Exercise 5-1 On January 1, 2013, Pam Company purchased an 85% Interest In Shaw Company for...
Exercise 5-1 On January 1, 2013, Pam Company purchased an 85% Interest In Shaw Company for $542,200. On this date, Shaw Company had common stock of $403,400 and retalned earnings of $138,800. An examination of Shaw Company's assets and liabilities revealed that their book value was equal to their fair value except for marketable securities and equipment: Book Value Falr Value Marketable securities $20,200 $45,100 Equipment (net) 119,900 140,000 v (a) 2 Your answer is partially correct. Try again. Prepare...
Exercise 5-1 On January 1, 2013, Pam Company purchased an 85% interest in Shaw Company for...
Exercise 5-1
On January 1, 2013, Pam Company purchased an 85% interest in Shaw
Company for $541,800. On this date, Shaw Company had common stock
of $398,100 and retained earnings of $143,700.
An examination of Shaw Company’s assets and liabilities revealed
that their book value was equal to their fair value except for
marketable securities and equipment:
Book Value
Fair Value
Marketable securities
$19,800
$44,600
Equipment (net)
120,200
140,000
(a)
Prepare a Computation and Allocation Schedule for the difference
between...
5-1 and 5-2 CISE 5-1 interest in Shaw Company for $540,000 Allocation of Cost LO 1...
5-1 and 5-2
CISE 5-1 interest in Shaw Company for $540,000 Allocation of Cost LO 1 LO3 On January 1, 2018, Pam Company purchased an 85% interest in Shaw Company On this date, Shaw Company had common stock of $400,000 and retained carnings of An examination of Shaw Company's assets and liabilities revealed that the equal to their fair value except for marketable securities and equipment: assets and liabilities revealed that their book value was Book Value Fair Value Marketable...
Exercise 5-3 Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $522,100. On...
Exercise 5-3 Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $522,100. On January 3, 2014, the acquisition date, Saddler Corporation's capital stock and retained earnings account balances were $494,200 and $98,500, respectively. The following values were determined for Saddler Corporation on the date of purchase: Inventory Other current assets Marketable securities Plant and equipment Book Value $49,700 201,500 100,800 295,400 Fair Value $69,000 201,500 126,500 326,700 (b) Prepare a Computation and Allocation Schedule for the difference...
Exercise 5-9 On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for...
Exercise 5-9 On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $1,986,000. At that time Sharp Company had common stock of $1,511,000 and retained earnings of $709,000. The book values of Sharp Company's assets and liabilities were equal to their fair values except for land and bonds payable. The land had a fair value of $98,000 and a book value of $79,000. The outstanding bonds were issued at par value on January 1, 2008, pay...
On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $1,997,000. At that time Sharp Compa...
On January 1, 2013, Point Corporation acquired an 80% interest
in Sharp Company for $1,997,000. At that time Sharp Company had
common stock of $1,516,000 and retained earnings of $702,000. The
book values of Sharp Company’s assets and liabilities were equal to
their fair values except for land and bonds payable. The land had a
fair value of $99,000 and a book value of $81,000. The outstanding
bonds were issued at par value on January 1, 2008, pay 9% annually,...
Exercise 3-4 On January 1, 2013, Peach Company issued 1,390 of its $20 par value common...
Exercise 3-4
On January 1, 2013, Peach Company issued 1,390 of its $20 par value
common shares with a fair value of $58 per share in exchange for
the 1,870 outstanding common shares of Swartz Company in a purchase
transaction. Registration costs amounted to $1,867, paid in cash.
Just prior to the acquisition, the balance sheets of the two
companies were as follows:
Peach Company
Swartz Company
Cash
$70,580
$13,760
Accounts receivable (net)
95,150
20,050
Inventory
58,210
22,920
Plant and...
Problem #1 Phillins Company purchased a un interest in Standards Corporation for $2.340,000 on January 1. 2018. Sta...
Problem #1 Phillins Company purchased a un interest in Standards Corporation for $2.340,000 on January 1. 2018. Standards Corporation had $1,650,000 of common stock and $1,050,000 of retained earnings on that date. The following values were determined for Standards Corporation on the date of purchase: Inventory Land Book Value $240.000 2,400,000 1,620,000 Fair Value $300,000 2,700,000 1.800.000 Equipment Required: A. Prepare a computation and allocation schedule for the difference between the implied and book value in the consolidated statements workpaper....
On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. ...
On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. for $266,600 cash The following balance sheet shows Sulfurst Inc.'s book values immediately prior to acquisition, as well as the appraised values of its assets and liabilities by Plutonium's experts Sulfurst Inc.'s Sulfurst Inc. Market Value Book Values Current assets $83,000 $83,000 Property, plant & equipment 79,600 159,400 $322,000 $108,300 91,000 21,600 101,100 $322,000 Land 101,500 Building & machinery (net) 159,400 Total assets Total liabilities...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The...
Exercise 5-1 On January 1, 2013, Pam Company purchased an 85% Interest In Shaw Company for $542,200. On this date, Shaw Company had common stock of $403,400 and retalned earnings of $138,800. An examination of Shaw Company's assets and liabilities revealed that their book value was equal to their fair value except for marketable securities and equipment: Book Value Falr Value Marketable securities $20,200 $45,100 Equipment (net) 119,900 140,000 v (a) 2 Your answer is partially correct. Try again. Prepare...
Exercise 5-1
On January 1, 2013, Pam Company purchased an 85% interest in Shaw
Company for $541,800. On this date, Shaw Company had common stock
of $398,100 and retained earnings of $143,700.
An examination of Shaw Company’s assets and liabilities revealed
that their book value was equal to their fair value except for
marketable securities and equipment:
Book Value
Fair Value
Marketable securities
$19,800
$44,600
Equipment (net)
120,200
140,000
(a)
Prepare a Computation and Allocation Schedule for the difference
between...
5-1 and 5-2
CISE 5-1 interest in Shaw Company for $540,000 Allocation of Cost LO 1 LO3 On January 1, 2018, Pam Company purchased an 85% interest in Shaw Company On this date, Shaw Company had common stock of $400,000 and retained carnings of An examination of Shaw Company's assets and liabilities revealed that the equal to their fair value except for marketable securities and equipment: assets and liabilities revealed that their book value was Book Value Fair Value Marketable...
Exercise 5-3 Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $522,100. On January 3, 2014, the acquisition date, Saddler Corporation's capital stock and retained earnings account balances were $494,200 and $98,500, respectively. The following values were determined for Saddler Corporation on the date of purchase: Inventory Other current assets Marketable securities Plant and equipment Book Value $49,700 201,500 100,800 295,400 Fair Value $69,000 201,500 126,500 326,700 (b) Prepare a Computation and Allocation Schedule for the difference...
Exercise 5-9 On January 1, 2013, Point Corporation acquired an 80% interest in Sharp Company for $1,986,000. At that time Sharp Company had common stock of $1,511,000 and retained earnings of $709,000. The book values of Sharp Company's assets and liabilities were equal to their fair values except for land and bonds payable. The land had a fair value of $98,000 and a book value of $79,000. The outstanding bonds were issued at par value on January 1, 2008, pay...
On January 1, 2013, Point Corporation acquired an 80% interest
in Sharp Company for $1,997,000. At that time Sharp Company had
common stock of $1,516,000 and retained earnings of $702,000. The
book values of Sharp Company’s assets and liabilities were equal to
their fair values except for land and bonds payable. The land had a
fair value of $99,000 and a book value of $81,000. The outstanding
bonds were issued at par value on January 1, 2008, pay 9% annually,...
Exercise 3-4
On January 1, 2013, Peach Company issued 1,390 of its $20 par value
common shares with a fair value of $58 per share in exchange for
the 1,870 outstanding common shares of Swartz Company in a purchase
transaction. Registration costs amounted to $1,867, paid in cash.
Just prior to the acquisition, the balance sheets of the two
companies were as follows:
Peach Company
Swartz Company
Cash
$70,580
$13,760
Accounts receivable (net)
95,150
20,050
Inventory
58,210
22,920
Plant and...
Problem #1 Phillins Company purchased a un interest in Standards Corporation for $2.340,000 on January 1. 2018. Standards Corporation had $1,650,000 of common stock and $1,050,000 of retained earnings on that date. The following values were determined for Standards Corporation on the date of purchase: Inventory Land Book Value $240.000 2,400,000 1,620,000 Fair Value $300,000 2,700,000 1.800.000 Equipment Required: A. Prepare a computation and allocation schedule for the difference between the implied and book value in the consolidated statements workpaper....
On January 1, 2017, Plutonium Corporation acquired 80% of the outstanding stock of Sulfurst Inc. for $266,600 cash The following balance sheet shows Sulfurst Inc.'s book values immediately prior to acquisition, as well as the appraised values of its assets and liabilities by Plutonium's experts Sulfurst Inc.'s Sulfurst Inc. Market Value Book Values Current assets $83,000 $83,000 Property, plant & equipment 79,600 159,400 $322,000 $108,300 91,000 21,600 101,100 $322,000 Land 101,500 Building & machinery (net) 159,400 Total assets Total liabilities...
Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) Total Assets Liabilities and Equity 110,000 Accounts Payable 200,000 Bonds Payable 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) 210,000 Paid-in Capital in excess of par Retained Earnings 1,000,000 Total Liabilities and Equity 100,000 160,000 350,000 1,000,000 The...
Most questions answered within 3 hours.
-
What is meant by a “term premium”?
What can explain such a premium? Is it a...
asked 1 hour ago -
23. Which molecule has only covalent bonds? A. CO2 B. Al2O3 C.
Mg3N2
24. The octet...
asked 2 hours ago -
the
total pressure for a mixture of N2O4 and NO2 is 2.20 atm. If Kp=
7.10...
asked 2 hours ago -
Delaware Corp. prepared a master budget that included $22,385
for direct materials, $28,600 for direct labor,...
asked 1 hour ago -
For pesticide HCB (hexachlorobenzene), its logarithmic partition
coefficient log Kow is 5.6. What would be the...
asked 2 hours ago -
A chemist requires 0.422 mil Na2CO3 for a reaction. How many
grams does this correspond to?
asked 2 hours ago -
If the vapor pressure of carvone is approximately 9.4 torr at 99
°C, approximately how much...
asked 2 hours ago -
A juice bottling company is carrying out a test at 10%
significance that the mean population...
asked 2 hours ago -
What is the reflectivity (in percent) needed to keep water at a
temperature near its freezing...
asked 2 hours ago -
Suppose that the average surface temperature of Earth is 300K.
Assume this is uniform over its...
asked 2 hours ago -
Draw the condensed structural formula for alkenes and alkynes or
the line-angle structural formula for cycloalkenes...
asked 2 hours ago -
M. Laing has suggested a new arrangement of the periodic table
(J.Chem.Ed.1989, 66,
746). Answer the following...
asked 3 hours ago