Johnson Corporation acquired all of the outstanding common stock
of Smith Corporation for $13,040,000 in cash....
Johnson Corporation acquired all of the outstanding common stock
of Smith Corporation for $13,040,000 in cash. The book value of
Smith’s net assets (assets minus liabilities) was $9,500,000. The
fair values of all of Smith’s assets and liabilities were equal to
their book values with the following exceptions:
Book Value
Fair Value
Receivables
$
3,000,000
$
2,630,000
Property, plant, and equipment
9,700,000
11,270,000
Intangible assets
370,000
1,540,000
Required:
Calculate the amount paid for goodwill.
On January 1, 20X5, Pirate Company acquired all of the
outstanding stock of Ship Inc., a...
On January 1, 20X5, Pirate Company acquired all of the
outstanding stock of Ship Inc., a Norwegian company, at a cost of
$167,400. Ship’s net assets on the date of acquisition were 720,000
kroner (NKr). On January 1, 20X5, the book and fair values of the
Norwegian subsidiary’s identifiable assets and liabilities
approximated their fair values except for property, plant, and
equipment and patents acquired. The fair value of Ship’s property,
plant, and equipment exceeded its book value by $18,000....
On March 31, 2021, Wolfson Corporation acquired all of the
outstanding common stock of Barney Corporation...
On March 31, 2021, Wolfson Corporation acquired all of the
outstanding common stock of Barney Corporation for $18,800,000 in
cash. The book values and fair values of Barney’s assets and
liabilities were as follows: Book Value Fair Value Current assets $
7,800,000 $ 9,300,000 Property, plant, and equipment 12,800,000
15,800,000 Other assets 1,180,000 1,680,000 Current liabilities
5,800,000 5,800,000 Long-term liabilities 7,800,000 7,300,000
Required:
Calculate the amount paid for goodwill.
Beaver Corporation purchased all of the outstanding common stock
of Cole Corporation for$2,000,000 in cash.The book...
Beaver Corporation purchased all of the outstanding common stock
of Cole Corporation for$2,000,000 in cash.The book value of Cole's
net assets was$1,200,000.The fair
values of all of Cole's assets and liabilities were equal to their
book values with the following exceptions:Receivables with book
value of$400,000 but fair value of$300,000;
Property,plant and equipment with book value of$1,500,000 but fair
value of$1,800,000;Intangible assets with book value of$100,000 but
fair value of$250,000.The amount
paid for goodwill would be:
Pham Company acquired the assets (except for cash) and assumed
the liabilities of Senn Company on...
Pham Company acquired the assets (except for cash) and assumed
the liabilities of Senn Company on January 1, 2019, paying $720,000
cash. Senn Company's December 31, 2018, balance sheet, reflecting
both book values and fair values, showed:
Book Value
Fair Value
Accounts receivable (net)
$ 72,000
$ 65,000
Inventory
86,000
99,000
Land
110,000
162,000
Buildings (net)
369,000
450,000
Equipment (net)
237,000
288,000
Total
$874,000
$1,064,000
Accounts payable
$ 83,000
$ 83,000
Note payable
180,000
180,000
Common stock, $2 par value...
17. kennedy Company acquired all of the outstanding common stock
of Hastie Company of Canada for...
17. kennedy Company acquired all of the outstanding common stock
of Hastie Company of Canada for U.S. $350,000 on January 1, 2021,
when the exchange rate for the Canadian dollar (CAD) was U.S.
$0.70. The fair value of the net assets of Hastie was equal to
their book value of CAD 450,000 on the date of acquisition. Any
acquisition consideration excess over fair value was attributed to
an unrecorded patent with a remaining life of five years. The
functional currency...
Consolidated Balance Sheet, Stock Purchase On January 2, 2014,
Prunce Company acquired 90% of the outstanding...
Consolidated Balance Sheet, Stock Purchase On January 2, 2014,
Prunce Company acquired 90% of the outstanding common stock of Sun
Company for $192,000 cash. Just before the acquisition, the balance
sheets of the two companies were as follows: Prunce Sun Cash
$260,000 $ 64,000 Accounts receivable (net) 142,000 23,000
Inventory 117,000 54,000 Plant and equipment (net) 386,000 98,000
Land 63,000 32,000 Total asset $968,000 $271,000 Accounts payable
$104,000 $ 47,000 Mortgage payable 72,000 39,000 Common stock, $2
par value 400,000...
Papilon Corporation acquired 90,000 shares of the 100,000
outstanding no-par ordinary share capital of Silicon Company...
Papilon Corporation acquired 90,000 shares of the 100,000
outstanding no-par ordinary share capital of Silicon Company for a
price of P1,200,000 on January 1, 2011 at the time when Silicon
Company had book and fair values as shown below. Papilon
Corporation also paid P96,000 direct acquisition costs in the form
of legal fees to outside consultants.
Ordinary Share Capital
P480,000
Accumulated Profits
600,000
Total net assets at book value
P1,080,000
Add: Differences between current fair value and book value
Inventories...
Papilon Corporation acquired 90,000 shares of the 100,000
outstanding no-par ordinary share capital of Silicon Company...
Papilon Corporation acquired 90,000 shares of the 100,000
outstanding no-par ordinary share capital of Silicon Company for a
price of P1,200,000 on January 1, 2011 at the time when Silicon
Company had book and fair values as shown below. Papilon
Corporation also paid P96,000 direct acquisition costs in the form
of legal fees to outside consultants.
Ordinary Share Capital
P480,000
Accumulated Profits
600,000
Total net assets at book value
P1,080,000
Add: Differences between current fair value and book value
Inventories...
On January 1, NewTune Company exchanges 15,000 shares of its
common stock for all of the...
On January 1, NewTune Company exchanges 15,000 shares of its
common stock for all of the outstanding shares of On-the-Go, Inc.
Each of NewTune’s shares has a $4 par value and a $50 fair value.
The fair value of the stock exchanged in the acquisition was
considered equal to On-the-Go’s fair value. NewTune also paid
$25,000 in stock registration and issuance costs in connection with
the merger. Several of On-the-Go’s accounts’ fair values differ
from their book values on this...