On June 10, 20X8, Playoff Corporation acquired 100 percent of
Series Company's common stock. Summarized balance...
On June 10, 20X8, Playoff Corporation acquired 100 percent of
Series Company's common stock. Summarized balance sheet data for
the two companies immediately after the stock acquisition are as
follows:
Playoff Corp.
Series Company
Item
Book Value
Fair Value
Cash
$
15,000
$
5,000
$
5,000
Accounts Receivable
30,000
10,000
10,000
Inventory
80,000
20,000
25,000
Buildings & Equipment (net)
120,000
50,000
70,000
Investment in Series Stock
100,000
Total
$
345,000
$
85,000
$
110,000
Accounts Payable
$
25,000
$
3,000...
2- Dubai Corporation acquired 100 percent of Sharjah Company's
common stock on January 1, 2019. Balance...
2- Dubai Corporation acquired 100 percent of Sharjah Company's
common stock on January 1, 2019. Balance sheet data for the two
companies immediately following the acquisition follows:
Item
Dubai
Corporation
Sharjah
Company
Cash
$
30,000
$
25,000
Accounts Receivable
80,000
40,000
Inventory
150,000
55,000
Land
65,000
40,000
Buildings and Equipment
260,000
160,000
Less: Accumulated Depreciation
(120,000
)
(50,000
)
Investment in Spin Company Stock
150,000
Total Assets
$
615,000
$
270,000
Accounts Payable
$45,000
$33,000
Taxes Payable
20,000
8,000
Bonds...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet data for the two
companies immediately following the acquisition follow:
.....................................................Hamlen..................
Pink's
Cash.............................................$ 30,000
..............$25,000
Accounts Receivable........................... 80,000
................40,000
Inventory........................................
150,000............... 55,000
Land.............................................. 65,000
................40,000
Buildings and Equipment......................
260,000............. 160,000
Less: Accumulated Depreciation............
(120,000)............. (50,000)
Investment in Pong Company Stock.......... 150,000
Total Assets...................................... $615,000
........$270,000
Accounts Payable...............................$
45,000.......... $ 33,000
Taxes Payable....................................
20,000............... 8,000
Bonds Payable ...................................
200,000........... 100,000
Common Stock..................................... 50,000
............20,000
Retained...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet data for the two
companies immediately following the acquisition follow:
.....................................................Hamlen..................
Pink's
Cash.............................................$ 30,000
..............$25,000
Accounts Receivable........................... 80,000
................40,000
Inventory........................................
150,000............... 55,000
Land.............................................. 65,000
................40,000
Buildings and Equipment......................
260,000............. 160,000
Less: Accumulated Depreciation............
(120,000)............. (50,000)
Investment in Pong Company Stock.......... 150,000
Total Assets...................................... $615,000
........$270,000
Accounts Payable...............................$
45,000.......... $ 33,000
Taxes Payable....................................
20,000............... 8,000
Bonds Payable ...................................
200,000........... 100,000
Common Stock..................................... 50,000
............20,000
Retained...
2- Dubai Corporation acquired 100 percent of Sharjah Company's
common stock on January 1, 2019. Balance...
2- Dubai Corporation acquired 100 percent of Sharjah Company's
common stock on January 1, 2019. Balance sheet data for the two
companies immediately following the acquisition follows:
Item
Dubai
Corporation
Sharjah
Company
Cash
$
30,000
$
25,000
Accounts Receivable
80,000
40,000
Inventory
150,000
55,000
Land
65,000
40,000
Buildings and Equipment
260,000
160,000
Less: Accumulated Depreciation
(120,000
)
(50,000
)
Investment in Spin Company Stock
150,000
Total Assets
$
615,000
$
270,000
Accounts Payable
$45,000
$33,000
Taxes Payable
20,000
8,000
Bonds...
Pie Corporation acquired 75 percent of Slice Company’s ownership
on January 1, 20X8, for $96,000. At...
Pie Corporation acquired 75 percent of Slice Company’s ownership
on January 1, 20X8, for $96,000. At that date, the fair value of
the noncontrolling interest was $32,000. The book value of Slice’s
net assets at acquisition was $100,000. The book values and fair
values of Slice’s assets and liabilities were equal, except for
Slice’s buildings and equipment, which were worth $20,000 more than
book value. Accumulated depreciation on the buildings and equipment
was $30,000 on the acquisition date. Buildings and...
Please explain the answers.
On December 31, 20X8, Polaris Corporation acquired 100 percent
ownership of Star...
Please explain the answers.
On December 31, 20X8, Polaris Corporation acquired 100 percent
ownership of Star Corporation. On that date, Star reported assets
and liabilities with book values of $300,000 and $100,000,
respectively, common stock outstanding of $50,000, and retained
earnings of $150,000. The book values and fair values of Star's
assets and liabilities were identical except for land which had
increased in value by $10,000 and inventories which had decreased
by $5,000.
Based on the preceding information, what amount...
On January 1, 2018, Marshall Company acquired 100 percent of the
outstanding common stock of Tucker...
On January 1, 2018, Marshall Company acquired 100 percent of the
outstanding common stock of Tucker Company. To acquire these
shares, Marshall issued $267,000 in long-term liabilities and
20,000 shares of common stock having a par value of $1 per share
but a fair value of $10 per share. Marshall paid $22,000 to
accountants, lawyers, and brokers for assistance in the acquisition
and another $7,000 in connection with stock issuance costs.
Prior to these transactions, the balance sheets for the...
Trim Corporation acquired 100 percent of Round Corporation’s
voting common stock on January 1, 20X2, for...
Trim Corporation acquired 100 percent of Round Corporation’s
voting common stock on January 1, 20X2, for $405,000. At that date,
the book values and fair values of Round’s assets and liabilities
were equal. Round reported the following summarized balance sheet
data:
Assets
$
707,000
Accounts Payable
$
94,000
Bonds Payable
208,000
Common Stock
118,000
Retained Earnings
287,000
Total
$
707,000
Total
$
707,000
Round reported net income of $77,000 for 20X2 and paid dividends of
$19,000.
Required:
a. Give the...
On January 1, 20X8, Gregory Corporation acquired 90 percent of
Nova Company's voting stock, at underlying...
On January 1, 20X8, Gregory Corporation acquired 90 percent of
Nova Company's voting stock, at underlying book value. The fair
value of the noncontrolling interest was equal to 10 percent of the
book value of Nova at that date. Gregory uses the equity method in
accounting for its ownership of Nova. On December 31, 20X8, the
trial balances of the two companies are as follows:
Gregory Corp
Nova Company
Dr
Cr
Dr
Cr
Current Assets
200000
120000
Depreciable Assets
300000...