Princeton Company acquired 75 percent of the common
stock of Sheffield Corporation on December 31, 2011....
Princeton Company acquired 75 percent of the common
stock of Sheffield Corporation on December 31, 2011. On the date of
acquisition, Princeton held land with a book value of $150,000 and
a fair value of $300,000; Sheffield held land with a book value of
$100,000 and fair value of $500,000. What amount would land be
reported in the consolidated balance sheet prepared immediately
after the combination?
a.$650,000
b.$500,000
c.$550,000
d.$375,000
On January 1, 2011, Primer Corporation acquired 80
percent of...
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 December 31, 20X9, Add-On Company acquired 100 percent of
Venus Corporation's common stock for $300,000....
On December 31, 20X9, Add-On Company acquired 100 percent of
Venus Corporation's common stock for $300,000. Balance sheet
information Venus just prior to the acquisition is given here: Cash
and Receivables $35,000 Inventory 75,000 Land 100,000 Buildings and
Equipment (net) 220,000 Total Assets $430,000 Accounts Payable
$65,000 Bonds Payable 150,000 Common Stock 100,000 Retained
Earnings 115,000 Total Liabilities and Stockholders’ Equity
$430,000 At the date of the business combination, Venus's net
assets and liabilities approximated fair value except for
inventory,...
The following are selected account balances from Cheela Company
and Jarjar Corporation as of December 31,...
The following are selected account balances from Cheela Company
and Jarjar Corporation as of December 31, 2018:
Cheela
Jarjar
Revenues
P 980,000
P 560,000
Expenses
560,000
420,000
Dividend Income
84,000
Dividends Paid
112,000
84,000
Accumulated profits, 1/1/18
840,000
280,000
Current Assets
560,000
700,000
Building (net)
1,260,000
560,000
Equipment (net)
840,000
1,400,000
Investment in Jarjar Corp.
?
Liabilities
700,000
1,932,000
Ordinary Shares
840,000
(P20 par)
280,000
(P10 par)
Share Premium
210,000
112,000
On January 1, 2018, Cheela acquired all of...
The following are selected account balances from Cheela Company
and Jarjar Corporation as of December 31,...
The following are selected account balances from Cheela Company
and Jarjar Corporation as of December 31, 2018:
Cheela
Jarjar
Revenues
P 980,000
P 560,000
Expenses
560,000
420,000
Dividend Income
84,000
Dividends Paid
112,000
84,000
Accumulated profits, 1/1/18
840,000
280,000
Current Assets
560,000
700,000
Building (net)
1,260,000
560,000
Equipment (net)
840,000
1,400,000
Investment in Jarjar Corp.
?
Liabilities
700,000
1,932,000
Ordinary Shares
840,000
(P20 par)
280,000
(P10 par)
Share Premium
210,000
112,000
On January 1, 2018, Cheela acquired all of...
he following is a summary of the statement of financial position
of Stratification Company showing data...
he following is a summary of the statement of financial position
of Stratification Company showing data regarding the carrying
values and fair values as of December 31, 2011:
Statement of Financial Position Item
Book Value
Fair Value
Cash
P 70,000
P 70,000
Trade and other Receivables
125,000
125,000
Merchandise Inventory
80,000
140,000
Land
62,500
90,500
Buildings and Machinery
500,000
443,250
Accumulated Depreciation
(187,500)
Total Assets
P650,000
P868,750
Trade and other Payables
P 12,500
P 12,500
Bonds Payable
200,000
180,000
Ordinary...
On January 1, 2011, Petron Corporation acquires the net assets
of the Shell Corporation for P625,000...
On January 1, 2011, Petron Corporation acquires the net assets
of the Shell Corporation for P625,000 cash. Prior to the business
combination, Shell Corporation has the following statement of
financial position:
Shell Corporation
Statement of Financial Position
January 1, 2011
Assets
Liabilities and Equity
Current assets:
Current Liabilities
P 62,500
Accounts Receivable
P150,000
Shareholders’ equity:
Inventories
125,000
P275,000
Ordinary Share
Property, Plant, and
Capital, P10
par
P250,000
Equipment
350,000
Accumulated Profits
312,500
562,500
Total...
On January 1, 2021, Ackerman Company acquires 80% of Seidel
Company for $1,866,080 in cash consideration....
On January 1, 2021, Ackerman Company acquires 80% of Seidel
Company for $1,866,080 in cash consideration. The remaining 20
percent noncontrolling interest shares had an acquisition-date
estimated fair value of $466,520. Seidel’s acquisition-date total
book value was $1,853,000.
The fair value of Seidel’s recorded assets and liabilities
equaled their carrying amounts. However, Seidel had two unrecorded
assets—a trademark with an indefinite life and estimated fair value
of $267,050 and several customer relationships estimated to be
worth $196,200 with four-year remaining...
Financial statements for Discovery Company follow:
DISCOVERY COMPANY
Statement of Financial Position
As of 31 December...
Financial statements for Discovery Company follow:
DISCOVERY COMPANY
Statement of Financial Position
As of 31 December
20X4
20X3
Assets
Current assets:
Cash
$
28,000
$
24,400
Accounts receivable
779,500
747,200
Inventory
635,900
580,800
Total current assets
1,443,400
1,352,400
Land
529,900
228,800
Plant and equipment
2,664,700
1,844,100
Less: Accumulated depreciation
(1,357,700
)
(1,339,200
)
Patents
140,800
148,000
Total assets
$
3,421,100
$
2,234,100
Liabilities and shareholders’ equity
Liabilities:
Current liabilities:
Accounts payable
$
439,000
$
482,400
Salaries and wages payable
69,200...